Welcome to Studsvik Q3 2026 conference call. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the speakers, President and CEO Karl Thedéen and CFO Peter Teske. Please go ahead.
Thank you, and a warm welcome to the Studsvik Group interim report of Q3 of 2026. Starting with some pictures of who we are and what markets we serve, we have shown these slides many times before. We are operating mainly in Western Europe and North America, but also a big market for us is Japan and Korea in Asia. We obviously work in a lot of international corporations and projects incorporating all the states that are having nuclear power except for Russia. We have global sales in 15 countries. We are more than 500 people, and we have local offices in six countries. The markets we serve is new build, long-term operation, decommissioning, and life science. Traditionally, this company has been very active in decommissioning and long-term operation.
Decommission is about, in a very safe way, dismantle and take care of nuclear power plants that are not in service anymore. That typically takes 20 years per plant, and our main business there is in Germany and Switzerland, but we also work in other parts like the Nordics. Long-term operations is to support our customers to operate the plant safely and also prepare them for lifetime extensions to support them with analysis, how they are going to keep the plants going for many years to come, up to 80 and sometimes 100 years after the initial construction. Life science is a reasonably new marketplace that we entered eight, nine years back, and we see increased demand and questions around life science, where we can handle the isotopes for cancer treatment and other illnesses that those kind of materials can solve.
The latest that we are entering as a market is new build. That was a market that this company started to support 80 years back and is now back in play. We have announced in the quarter a project to build new reactors here in Sweden. I will do more of that later. So the markets are basically four-folded, and we have entered into a new market during this year. Next slide, please. With that, then going to Q3, we are very proud of the growth that we show in the quarter growing more than 10% compared to the same quarter last year at 227 million SEK. Very strong performance, and this is mainly contributed from the Scandpower business area, but also from the others. The operating margin is in the lower range. That is not unusual for this quarter.
Q3 is seasonally a weak quarter from a profitability point of view, and we do see that this is in line with what are our expectations. If we go a little bit more into the detail of the different business area, I am specifically proud of what we have achieved in Decommissioning and Radiation Protection Services.
We started a journey of change in that business area some 12 months back, and in Q2 and even more so in Q3, we now see the result with significantly improved profitability. Actually, over the sort of target that I have set internally of 8%, we are almost hitting 10% profitability. So very strong. That is driven both our utilization, more efficient, but also a better market in general for the market we serve. In the Fuel, Materials and Waste Technology, FMWT, we have a solid quarter, and this business area is affected by the holiday seasons in Europe.
This is, I would say, a strong quarter for being Q3, but it is seasonally affected by the season. We have taken. We come to significant new orders in this area. We have a very good outlook for this business area. Studsvik Scandpower did a record quarter in terms of growth. We grew more than 40% in the quarter, and very interesting is that it is driven not only by the software sales and advisory and support services, but also by the BlackStarTech product that are almost 20% of the sales in the quarter. We continue to report solid margins in that business area. This is what we call the cash-generating core, the main part of the business that we operate with our business areas today.
We also have, and this slide try to do the cash-generating core, that is the base business that we drive today and try to improve step by step. I will say I am proud to say that we have three business areas that are now in a much better state than they were a year back, and that they are now coming up to the level of growth and profitability where they should be. The asymmetric upside, which we have discussed from Q2 is to describe what investments and measures we take to really drive the company into substantially better growth and profitability, riding on the wave of new investments in the nuclear sector.
Here you can see doing more of existing fleet, the back end, which is basically what we do for Norway. How we engage in new build projects, how we come into new areas like the advanced modular reactors and fusion, and continue to drive life science. If we go back a little bit to Q3 and the key milestones of Q3, as I said, growth in all the three business areas, very important and a solid 10% growth for the group. DRPS, strong demand and profitability. Very interesting, we had an opportunity at our site north of Nyköping in Sweden to take over a hot cell, which is actually more modern and much bigger than the hot cells we have today. That we have rented for some while, but we took it over from SVAFO and that is now in our own capacity.
This means that we can continue to grow the FMWT business area. As we see more demand, we need more capacity to deliver that, so very important for us. As I said, Scandpower continues to grow strong both on the software side and on BlackStarTech. We launched a new build project, more of that later, 1.2 gigawatts to be built either at our site in Nyköping or at another site on the east coast of Sweden called Valdemarsvik. We have appointed a new board member in Mats Ladeborn, and he also took over as acting Chairman from October 12th. After the quarter, we signed two very interesting deals. Norway, which is a backend where we take care of Norway's legacy fuel. I will describe that more in detail.
A much smaller but a very interesting strategic order for Japan, where we will develop our inDRUM waste management technology to take care of waste coming out of the Fukushima plant. Let's go into the asymmetric upsides and some proof points of that. Here you see a consortium that we are very proud of. This was launched on September 3rd in Stockholm. We are obviously aiming to form a consortium, but that we as partners can develop new nuclear in Sweden. We will contribute with things like the site and competence, but we also look for partners that can contribute on a broad range to develop this together. In that selection, we found GE Vernova, Hitachi, that has a proven 300 MW SMR that is the only SMR in the Western world now under construction in Darlington, Canada.
We also found Samsung that have actually recently built nuclear power plants in Korea and in UAE and have a strong partnership with GE. We also initially launched financing support from DS Investment Partners. That consortia is really a dream team to drive this forward. As I said, 1.2 GW, that's equivalent to four of these BWRX-300 reactors, two candidate sites, and we expect the first unit to be somewhere in the latter half of 2035. We will now continue. The next part of this project will be to continue the state aid application to form a joint venture for a company, and then continue with the financing and the permitting activities over the next couple of years. A little bit more on the partners, and it's a true partnership here. We can maybe start from the top right-hand corner.
DS Investment, a South Korean investment firm, they have already worked in similar projects in Romania, so they are really keen to not only enter as an investment part, but also maybe more important to be part of an initial early phase investment into this, which could be, in many cases, the most difficult area to finance. Good for us to have them with us from day one. GE Vernova also not only bring reactor technology, but also their financing arm is very strong and a part of the consortium. We lead permitting environmental impact assessment, site rights and so on, and very important over the course to drive this in the Swedish context. As I mentioned, Samsung is a very important part of this.
They will also engage with local and Swedish suppliers to drive this, but they have the know-how to really lead and drive the construction of these power plants. GE Vernova, Hitachi had already a very strong inroad into Sweden as they worked with the other project, Videberg Kraft, for many years. They have then already also a lot of partnerships and knowledge about the Swedish market, but also obviously bring their strong technology from the U.S. market and international market. The second big one, and this was actually signed after we ended the third quarter. This is a picture from the small village or city of Halden, just north of the Swedish border on the west coast.
In the mountain behind us there is actually where they host one of their research reactors that they've had and actually very important for research in nuclear that was in operations in the 1960s, 1970s, 1980s, and it was closed down in 2010 or 2005, I think it was. What they are now been looking for, they created something called Norwegian Nuclear Decommissioning, and they wanted a way to, in a safe way, decommission this. The first thing you need to do that is to take the spent fuel out of the site so you can start decommission the rest. They have been looking and evaluating this. We have been engaged with them in a smaller project already from 2018. Now they have decided that we are the best partners to actually help them to get rid of the spent fuel.
Very important for us and actually for them to get going. It's the legacy fuel that we take care of. It's around 17 tons. It sounds a lot, but obviously this is very small compared to if you run operational reactors. It's a long-term contract, but with committed volumes from day one, so it's not a frame agreement, it's a committed volume and purchase order coming to our desk day one. It's not material for our revenue or profits in 2026 or 2027. But we will build volume in this contract over time as we go and get all the permits to actually import the fuel and store it intermediately at our site in Sweden. We will utilize facilities that we already have on site. So this is not that we need to invest a lot of money to take us to do this job.
There will be some new intermediate storage paid as part of the contract. But other than we use a lot of, specifically also the, as you mentioned, the hot cell that we have taken over will also be a good asset in this. This is also a very good reference for us because there are other similar research reactors spent fuel that we also have discussions with, and this would also prove that we are a site in Europe to help other countries to take care of their spent fuel. The second important but significantly smaller day one is the agreement we signed with ReNu Industries of Japan, and this is actually very recent. It happened on 21st October.
ReNu have applied for funding to start a development project to put our inDRUM on the site in Fukushima to take care of contaminated liquids that have been used to clean water. That was a big part of the waste that came out of the Fukushima disaster. We see this very important sign that we have something very important or good technology sign to work with in that sense. inDRUM, this is a picture from our demo facility at our site. What it basically does is take waste that cannot be disposed in its current format to being disposable. It treats everything that is inside a contained environment, typically a drum, so you do not need manual handling. Most importantly, it reduces volume with up to 90%, so you actually have to store less of contaminated waste. ReNu Industries, they want to bring this to Fukushima.
They will work with us to develop it, and we will advise them, sell the technology licenses, and get recurring revenue from that once this site is up and running. They will run the facility in Fukushima and other parts of Japan and Asia. A very important first step to go into a new market and also work with this business cycle of inDRUM. Continually a bit on asymmetric upside. We have momentum in many areas. Existing fleet, we talk about the Norwegian agreement, which is very much building for the future, giving a strong foundation in high revenue and margin for the company for many years to come.
We also have the sign off that our inDRUM, which is a new technology that will also build recurring revenue, not only when we build it at our site in Nyköping, but also when we go into these kind of licensing agreements in the world. New build, a big area for the asymmetric upside. We took a very important step in the quarter on that one. Advanced nuclear, here I highlight fusion. Fusion is enjoying a lot of investments in countries like the U.S., Germany, France, also Sweden. Here we highlighting that we have a very strong competence in this and we are hosting, or we are chairing one of the standardizations around from one of our German colleagues. We also attended and was a strategic partner and had the spokespeople at the Nordic Fusion Forum in Copenhagen last week.
Fusion will continue to be an area we will invest in business development, as many of the services they ask for are the services we have provided to the fission or nuclear power market. In life science, we continue with a lot of interest in business development. The momentum in the asymmetric upside is strong, and as I said, the cash generating core is in very good health. Next slide, please. With that, I hand over to Peter for the financial part.
Thanks Karl. I will start with the group numbers. The sales in the quarter amounted to SEK 227.4 million. That is up 10.7% in local currency. As Karl mentioned, we are so proud that all our three business areas grew within the quarter, with Studsvik Scandpower showing the strongest increase. For the first nine months, the sales amounted to SEK 700.8 million, up 7.9% in local currency. That is above our financial target of 6%. Operating profit was SEK 7.2 million in the quarter compared to SEK 13.2 million last year, giving an operating margin of 3.2%. When we talk about the results, we need to take into account that Q3 last year, we had a one-off effect of SEK 6 million. Exclude that effect, the profits in the quarter are in line with the Q3 result last year.
During the quarter, we have continued to invest in our ReFirm programme within BlackStarTech, SMR and AMR development, as well as in inDRUM waste technology. These initiatives carry costs today and are intended to support the future growth of the company. When we talk about operating profit, even on the group level, we want to highlight the increased profitability we had within DRPS. The margin increased to 9.9%. If you look on the free cash flow, as we expected, it was negative in the quarter. It was negative with SEK 35.3 million. The main reason behind this is the changes in working capital, where the customer advances reduced as the prepaid project progressed within our company.
Year to date, our free cash flow, when you look at those numbers, you should take into account that they are including the SEK 34.1 million cost of the acquisition of Kärnfull Next. If we go into and look a little bit more in the detail of our business areas, we start with the Decommissioning and Radiation Protection Services. The sales in the quarter amounted to SEK 92.8 million, and that is up 2.6% in local currency. For the first nine months, the growth was 4.5%. The main point we want to highlight here is the improvement of the profitability. The operating profit more than doubled to SEK 9.2 million from SEK 4.4 million last year, and also the increased operating margin. We are seeing now that the changes we did during the past year now translate into results.
We have a clear focus on higher margin services, we have better capacity utilization, and we continue our work with the cost discipline. This combine of a stronger market contributes to the strong result. Then we go to Fuel, Materials and Waste Technology, FMWT. The sales increased to SEK 83.1 million from SEK 79.5 million, and that is up 4.4% in local currency. The operating profit was SEK 4.4 million. We see that is a slightly lower profit compared to last year. There are mainly two main reasons behind the lower profit. One is the seasonality that we have within the business, and also during the quarter, we had a little bit less favorable product mix. We are still focusing on improving our productivity and the high utilization. That will, of course, continue even into Q4 and ongoing the next years.
With that said, we have a strong order backlog within the business area now when we enter Q4. During the quarter, we also took over the operation of the hot cell facility from SVAFO at the Studsvik site. This expands the capacity and improves the logistic for the future projects. From a financial point of view, this also increased our financial assets and our provisions, and that reflects the decommissioning fund of the future obligation of the decommissioning of this facility. We also signed the NND agreement with Norway, and this is a long-term agreement and runs until 2055. The agreement includes a fixed annual fee, and that is covering the project management, regulatory work, security, and also reservation of storage capacity of Studsvik. The pre-study begins immediately, and we define in detail how the fuel is collected, transported, handed into Sweden, and also returned to Norway.
On that basis, the parties, we and Norway, will then finalize the project plan and the budget. The NND will place order for each stage. All these are subject for required regulatory approvals and permits for both countries. This will not affect us financial material during 2026 or 2027. Then we move to Studsvik Scandpower, and the sales reach SEK 54.8 million compared to SEK 38.7 million last year. That is a growth of 42.3% in local currency, and that is supported by the software deliveries we have done during the quarter and also signing new customer agreements. It is also encouraging to see that our BlackStarTech business contributes by nearly 20% of the business sales in the quarter. The operating profit increased to SEK 9.2 million from SEK 7.8 million Q3 2025.
We also need to take into account that last year we had a one-off in the quarter, so therefore it is a little bit tricky to do the comparison when you compare it between this quarter and also for the full year. For the first nine months, sales grew with 21.5% in local currencies, while operating profit was SEK 12.4 million compared to SEK 21.4 million last year. As I said, last year, we had one-off of SEK 6 million as well as we had some FX gains. Then my final slide, we talk a little bit about our cash flow. The cash flow was, as I said in the beginning, negative with SEK 35.3 million, and that is compared with the same quarter last year, where we have a positive cash flow.
If you look on the bridge I have done and start to go from left to right, you see that the operating cash flow before working capital was positive with SEK 16.4 million. Then, as expected, our working capital was negative with SEK 41.5 million, and that is due to that we continue to deliver on our prepaid project, and that means that our customer advances has reduced. I also want to highlight that our trade receivables now are almost SEK 19 million higher compared to end of Q3 last year. This will, of course, have a positive effect in our cash collection in the coming month. We have also done some investments on site in Nyköping, and they amounted to SEK 10.1 million. In this cost, there is also some minor acquisition investments.
For the first nine months, free cash flow was negative with SEK 107.3 million, and that also includes SEK 34.1 million from the KNXT acquisition. We still are focusing a lot on how and monitoring the cash flow, and we work with the change. We monitor the cash flow and the change in working capital very closely. To sum up the financial, I will say that it is positive that we have growth in sales on all three business areas and especially clear improvements in DRPS. We have an underlying group profitability that was in line with Q3 last year. We continue to build for future growth while keeping focus on the earnings and cash flow. With that, I will hand it over to you, Karl.
Thank you, Peter. Let me summarize the business once again. The net sales, strong growth of more than 10%, significantly higher than our financial target of 6%. DRPS, as we said, both growth, significantly improved efficiency, and hence also strong profitability, which is an effect of the changes and new leadership that we put in place in the beginning of this year. FMWT hot cell capacity expanded, which is important because we need to take more and more growth out of the facilities that we have in Nyköping. Obviously, we are extremely proud in the foundation that the NND landmark agreement puts to us, it cannot be underestimated. It is very important for the long-term play of our business. Scandpower, strong growth, both in the traditional software and advisory and support business, but also very nice to see that BlackStarTech is contributing with almost 20% of the sales.
The new area, which is sort of the new market that we are starting to serve much more aggressively is new build and specifically new build here in Sweden, which is one of the most favorable markets in the world to start new build projects. There, the partnership with GE Vernova, Hitachi, and Samsung is clearly the strongest partnership that we can have found, both on technology, financing, and experience. inDRUM, which is our waste technology, which is something that we are planning to build at site, but we also have a business plan to sign technology licenses for recurring revenue in the world, and we are very proud to sign that we renewed the Japanese partner to develop that for Fukushima waste to start with and for other waste in Japan and Asia.
Global business, 80% of our sales is outside Sweden, so this is truly a global investment case. One platform, two return profiles, the existing cash-generating core and the big upsides that we are trying to back for the future, and we have clear proof points of that in the quarter. This is a slide that I have shown for quite a few investment calls now, and you will recognize that we added, I think last quarter, the SMR developments that we see. We have hot cells. Actually, the new hot cell is by the sea that we have not put in here, but that is one we added. We are obviously looking to become bigger in the fusion, and here we are in discussion to put a test facility here.
inDRUM, we talked about inDRUM partnerships internationally, but important here is that we also build inDRUM facilities at site for Nordic and European customers. The life science business with Nordic Isotope. Then we added one, which is the intermediate storage for the Norwegian spent fuel, which we will build on the contract from the NND customer in Norway to store the spent fuel before and after treatment, before returning it latest 2055 to Norway for final disposal. You can see that this site is more and more becoming a very important asset for the company, and we will continue to drive business opportunities out of that asset. Thank you very much for listening, and by that, we hand over to questions.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Kaleb Solomon from SEB. Please go ahead.
Hi, guys, and thank you for taking my question. Maybe I will start off with a question of Scandpower. Operating profit was up quite a bit compared to last year, despite absence of positive one-offs, which were quite substantial last year. At that same time, you are saying earnings were held back by investments into product development this quarter. Can you maybe just start by telling us how big those investments were this quarter to get a better sense of how the underlying performance was?
Well, if I start, I think first when we view this business, we have very strong profits and obviously we do not scale cost that fast, even for investments. It is very much leveraged by the strong growth in the quarter. That growth comes both from very profitable license sales into advisory and support services, but also BlackStarTech, which typically is a slightly lower margins than the software business. All in all, I think the volume drives a lot of the positive signs in this quarter. Investments here continues to be in BlackStarTech, where we invest for product development, also go-to-market models and partnerships that we need to sign to really drive volumes in that business. That is one big investment area. Then we are investing in new software modules based on the team we have, but also with new hires.
That's first to serve the light water market that we're in, but also to build more advanced product for the advanced modular reactor business that we do. I think it's a continuation of investments, but obviously for example, the BlackStarTech business has been an investment case for the last 18 months that we have invested in the business to put us in a position where we can start getting significant or reasonable good sales in the quarter. I don't know, Peter, if you have any other additions?
No.
I'll get to BlackStarTech, but can you give us a sense of how big those investments were this quarter and if we should expect the same run rate heading into Q4?
I think that I would just continue to say what Karl said, that we will continue to invest in the business, both within Scandpower and especially within BlackStarTech. So they will continue.
Okay. So I interpret that as you don't want to put a figure on how big the investments was this quarter.
Yeah, that's correct.
Okay. As a follow-up to that, earlier, Karl, you expected BlackStarTech to constitute roughly 10% of power earnings this year, and you're already up to 20% as you mentioned earlier in Q3. Should we extrapolate that run rate heading into Q4 and 2027 as well? Or was there any particular reason the contribution was so big this quarter?
Well, as you see, the business in Scandpower is very seasonal from the base business, the software business. Also this year, we expect Q4 to be a strong quarter for that business. In terms of BlackStarTech, that's much more of a hardware business. It's much more lumpy. So I think to forecast that and just extrapolate what we did this quarter is not the right way to do it. It's going to bounce up and down during the quarters because of the nature of that business. But I think it's a sign that we have started to get a sales machine going and that we have products that is attractive for the market.
But I think it's also fair to say that we are still in early days for the full potential of BlackStarTech, and we need to continue to invest and drive that business. Now it's only a North American business, over time we also need to drive it into the European business.
Okay. That's helpful. Just lastly on BlackStarTech, then I will move on. The sort of long-term potential there as you described it, is to be sort of 10% of group earnings. If it keeps developing at this pace, do you think we can reach that level maybe end of next year or 2028? How should we think about the timeline for that?
I think I have not said group earnings. I think I had said Scandpower earnings, but maybe we can come back to that. I think we should, as I said, view this as a positive sign. Do not extrapolate too much at this time. It will take time to drive the full potential of all the products into the market. So I will not put a figure for next year on this.
Okay. That's clear. On FMWT, I appreciate there are some seasonal and mix effects here, but earnings year to date are down 12% if we just compare it to last year, which kind of implies that we have to see a significant step-up in Q4 in order to sort of stay flat compared to 2025. Is that a fair way to look at it, or should we expect 2026 to perform slightly below last year's level as a total?
Well, I am not going to forecast 2026, but it is seasonal. Q3 is weak. We, as Peter said, we have a strong backlog in this business, then it is all about execution. The execution of this is not like building cars, it is actually every project is different from the other project. But we do hope and believe that we are going to have a strong quarter in FMWT.
Okay. That is helpful. Thank you. As a follow-up to that, can you give us a sense of the earnings impact from expanding your hot cell capacity this quarter? When will that start to impact earnings?
First of all, this hot cell has been utilized by us to some extent through a rental agreement with SVAFO. I think the most important is that we, out of the business areas today where we see the strongest new demand based on the new renaissance of nuclear, is actually in the FMWT business area. For us, it has been important not only to get this, but also to review the way we operate so we can take on the growth also in revenue, not only in building backlog. This agreement is important, but we take other measures. We have appointed a head of operations for the site in Nyköping to really drive efficiency, to make sure that we can sustain a higher growth than in the past in this business area based on the assets we now have at hand.
Okay. That is clear. On decommissioning, this was the best quarter profitability-wise since early 2022, and you attribute part of that to better utilization and the larger share of higher margin services. Can you maybe split up how much each part contributed? I am asking because utilization, sick leave, et cetera, is a bit harder to predict, but maybe it is fair to extrapolate the second component of that earnings improvement.
First of all, DRPS is also seasonal, so this was a strong quarter. We have maintenance in work in Switzerland and so on. It was a strong quarter also from a project mix and demand point of view. I think on illness rates, we have basically reduced illness rate with some 40% from the peak, with new measures on how we work with our employees, making sure they are obviously healthy at work and that we also have measures that make sure that we comply with all the regulations. That is very, very important that we get people to be at work. In Germany it is very costly for the employer when people are off work. I think that is maybe from a utilization point of view together with the project mix, those are the two most important for the profitability.
I do think that the sickness rate and that is sort of sustainable, although some quarters of the winter, the sickness rate will probably go up for some natural reasons. I think the measures we put in place are sort of there for the future.
Okay. That's clear. Thank you. Leaving the quarter a bit, on the agreement you signed with NND, I appreciate that there's no sort of meaningful impact next year, but what are the key milestones and regulatory approvals needed to convert that estimated SEK 3 billion-SEK 4 billion of total value into work orders? How should we think about the revenue ramp-up over that contract period?
Okay. First of all, I think it's important, which we praised, this is not a frame agreement. It's committed revenue from day one, not material, but it's committed, which means that this is a contract that both ourselves and the customer need to work on from day one. The first thing that will happen now is that, as Peter Teske said, there is a base fee for keeping basically working with this and making sure that we prepare and also support the Norwegian customer with all the regulatory discussion from day one. Other than that is the pre-study that will define the project in detail, and the different steps. That is one key part that we'll do during 2027. There are key regulatory things that needs to happen.
We already have an existing contract for Norway for another site in Kjeller, and there is actually something going up in Stortinget in Norway in December, I think it is, where they will decide on a return guarantee with the end date of 2055. That's very important because then Norway can work with the Swedish regulators to make sure that we can get permits to start importing fuel to Sweden. That can actually happen already for that contract happen already in the coming years. Following that, the bigger contract for Halden will happen. I would guess that when the volume really starts becoming material, for us, we are probably in the early 2030, 2029, 2030, 2031. There's also other things like the construction of this intermediate storage that can drive revenue as well before that.
But this is a buildup of the volume that will take some time.
And after that sort of 2030 point, is it fair to assume it's sort of fairly distributed run rate throughout the contract period?
Yes, but I think it's going to be higher, the peak if you will, the continuous high level would be from 2030 to maybe 2045, and then the last 10 years would be more of intermediate storage and committed.
Okay. That's clear. Thank you. And just another question on the inDRUM partnership you announced today. What sort of commercial terms do you expect from that proposed licensing model? And what milestones do you have to meet before the pilot could translate into meaningful revenue?
I think the meaningful revenue is when we start building the operating plant in Fukushima, and that can probably take another three, four years. First we go through a pilot that would not treat radioactive material and prove the concept, and then you go to a more radioactive, basically liquid in this case, and that will start in another three, four years when we build the operating plant for this. Exactly the volumes of this I don't have at hand, but the model is that we will get paid both for our initial licensing and advisory services, but then also when it's in full operation based on volume we will get paid. It's going to be recurring revenue that way.
Okay. That's very clear. Thanks, guys. Thanks for taking my questions.
Thanks.
As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for written questions and closing comments.
First of all, thank you very much for listening. Just to remind you, strong growth in the quarter, DRPS as one example, back to very strong profits and asymmetric upside driven by the Norwegian large deal and our consortia to build new nuclear reactors in Sweden. Thank you very much, and we also would like to highlight that the next earnings call for Q4 is January 22nd. We pushed that a bit earlier, so January 22nd is the next date for our earnings call.