Sweden · Delayed Price · Currency is SEK Elekta AB Earnings Call Transcripts
Fiscal Year 2026
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Solid Q3 performance with improved margins and strong order growth in China and the U.S., despite FX and tariff headwinds. Restructuring is nearly complete, with over SEK 500 million in annual savings expected from Q1 next year.
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Four strategic priorities are driving transformation: operational simplification, focused innovation, regional growth in China and the US, and ongoing cost reduction. Decentralization, new leadership, and a shift to faster, customer-driven innovation cycles are underway, with significant savings and market share gains expected.
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Q2 saw modest organic growth, margin improvement, and strong cash flow, with Europe leading performance and China showing order recovery. A new operating model and 10% workforce reduction target SEK 500 million in cost savings, while order backlog was cleaned up with no revenue impact.
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Q1 saw 3% sales growth in constant currency, led by strong EMEA performance and new product launches, but margins declined due to FX and tariffs. U.S. and China remain weak, with recovery in China expected in H2, and full-year sales growth guidance is reiterated.
Fiscal Year 2025
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Profitability and margin expansion are prioritized through order book quality, price increases, and software-driven growth. Strong market positions in Europe and China, asset-light innovation, and SaaS adoption underpin confidence in achieving mid-term financial targets.
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Book-to-bill remained strong, with sales and margins improving year-over-year, especially in Europe, while the U.S. lagged due to delayed Evo clearance. A significant non-cash impairment was recorded, but cash flow and cost savings were robust. Margins are expected to expand further in 2025-2026.
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Q3 saw 2% sales growth in constant currencies, strong order growth, and record cash flow, driven by new product launches and robust performance in Europe and APAC, while US and China lagged. Full-year guidance was lowered due to US and China, but long-term margin expansion is targeted.
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Net sales declined 4% year-over-year, with gross margin at 35.7% and adjusted EBIT margin at 9.8%. H2 is expected to see improved sales and profitability, driven by new product launches and cost reductions, with a mid-single digit full-year sales growth outlook.
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Net sales grew 1% in constant currencies, with strong U.S. installations and a major order in Mexico. Margins remain under pressure from inflation, but sequential improvement and cost-saving initiatives are underway. Full-year sales are expected to grow mid-single digits, with margin expansion in H2.
Fiscal Year 2024
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Rising cancer rates and staff shortages are driving demand for innovative, efficient radiotherapy solutions. Recent launches like Evo and Elekta ONE Planning offer AI-enhanced imaging and adaptive workflows, leading to strong order intake, higher prices, and recurring revenue growth.
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Net sales grew 5% year-over-year, with strong product launches and service growth, but Q4 saw a 2% sales decline due to challenging market conditions in Europe and the US. The outlook anticipates a weaker first half of 2024-2025, with recovery and margin expansion in the second half, driven by new products and productivity measures.