Elekta (EKTA) investor relations material

Executive summary

• Net sales grew 3% in constant currency, driven by strong EMEA performance and new product launches, while reported sales declined 5% due to FX and lower volumes in China and the US.

• EMEA became the largest region, accounting for 40% of total sales, with 15% year-over-year growth.

• Americas and APAC sales declined 4% each, mainly due to US customers awaiting EVO clearance and weak order intake in China and India.

• Cash flow after investments improved by SEK 529 million year-over-year to negative SEK 361 million, mainly due to better working capital management.

• Key achievements included FDA clearance for Gamma Knife epilepsy treatment, major commercial wins, and appointment of a new CEO effective September 1.

Financial highlights

• Adjusted gross margin declined to 37% from 37.8% year-over-year, mainly due to FX and tariff costs.

• Adjusted EBIT margin was 6.5%, down from 7.4% last year, impacted by lower gross margin and higher R&D expenses.

• Net income for the quarter was SEK 106 million, up 50% year-over-year.

• Cash flow after investments improved to SEK -361 million from SEK -891 million year-over-year.

• Rolling 12-month cash conversion reached 92%, above the 70% target.

Outlook and guidance

• Q2 net sales expected to be negatively impacted by weak US performance and low prior-year order intake in China, with China recovery anticipated in H2.

• Continued negative impact from FX and tariffs expected in Q2.

• Full-year outlook reiterated: net sales in constant currency expected to grow year-over-year.

• Roadmap in place to restore gross margin to pre-pandemic levels and achieve at least 14% EBIT margin midterm.

• No commitment to organic growth in Q2; margin expansion for the full year remains an ambition but not explicitly guided.