Studsvik went into its Q3 2026 release priced for perfection, trading on a P/E of 62.4x compared with a European commercial services sector on 14.9x. The story many investors owned was a premium nuclear services platform with accelerating earnings. The headline today is very different. Quarterly basic earnings per share dropped to 0.09 SEK and net income from ongoing operations came in at SEK 0.7m, while the stock has already drifted down 11.5% over the past month. The gap between the high valuation and a squeezed profit line is now impossible to ignore.
Like the nuclear theme at Studsvik but uneasy with a 62.4x P/E on thin quarterly profits? Check out a tighter shortlist in the list of solid balance sheet and fundamentals stocks (205 results) .
Q3 2026 Earnings Summary
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Revenue (Q3 2026 vs. Q3 2025):SEK 227.4m vs. SEK 205.8m (up 10.5%)
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Net Income from Ongoing Operations (Q3 2026 vs. Q3 2025):SEK 0.7m vs. SEK 3.6m (down 80.6%)
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Basic EPS (Q3 2026 vs. Q3 2025):SEK 0.09 vs. SEK 0.44 (down 79.5%)
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Operating Margin (Q3 2026, company level):3.2% on SEK 7.2m operating profit and SEK 227.4m sales (a seasonally weak quarter with ongoing investment spend)
Prefer visual charts to another wall of Studsvik numbers and earnings commentary? Get a full picture of the business with a clear view of its valuation in the company report for Studsvik.
Studsvik's growth story still has real traction
For anyone leaning bullish on Studsvik, the top line does some heavy lifting. Q3 sales reached SEK 227.4m and 9M revenue of SEK 700.8m grew 7.9% like for like, ahead of the 6% target. Scandpower's 42.3% like for like increase, with rising software and BlackStarTech hardware, plus firmer margins in Decommissioning & Radiation Protection Services, fits the idea of a specialized nuclear lifecycle platform with broader reach and a strengthening order backlog from Norway and Japan.
Profit squeeze and cash outflow temper enthusiasm
The bear story focuses on what it costs Studsvik to chase that growth. Net income from ongoing operations fell to SEK 0.7m in Q3 and basic EPS dropped to SEK 0.09 even as revenue climbed. Group operating margin sat at 3.2% and free cash flow weakened, with SEK 35.3m outflow in the quarter and SEK 107.3m for 9M. Continued spending on SMR, inDRUM and product development supports future potential but keeps near term profitability and cash generation under pressure.
After earnings have already declined 19.6% per year over 5 years and cash is flowing out, it is fair to ask if Studsvik's current squeeze is just a temporary growing pain or a symptom of deeper issues in contract quality, one off items and execution risk. Scan the independent risk analysis for Studsvik which shows 2 important warning signs
Hunt For Cleaner Earnings Power
Studsvik's quarter shows how a strong narrative can meet weaker profitability. The real opportunity could sit in stocks where fundamentals are improving faster than current valuations reflect.
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Company 1 - 45% below our estimate - uses a cluster-based production setup to fold new heavy mechanics deals into larger, more efficient European units.
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Company 2 - 40% below our estimate - secures long-term service contracts that now convert turbine sales into recurring, higher-margin maintenance work.
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Company 3 - 25% below our estimate - expands fuel retail outlets so refining output feeds directly into owned forecourts rather than third-party distributors.
Those are three of them. See every one of the 193 undervalued companies on it →
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include SVIK.ST .
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