Elekta (EKTA) Investor update summary

Strategic Focus and Market Positioning

• Emphasis on profitability, margin expansion, and sustainable growth through product mix, price increases, and productivity improvements.

• Strong market positions in Europe and China, with tailored strategies for mature and emerging markets.

• Leadership in high-margin segments such as brachytherapy and neuro, and a growing software business.

• Adaptive radiotherapy and software innovation are central to competitive differentiation and customer value.

• Asset-light, incremental upgrades and SaaS models drive recurring revenue and customer loyalty.

Leadership and Strategic Direction

• Jakob Just-Bomholt appointed as new President and CEO, effective September 1, bringing international experience in growth and profitability.

• Transition from ACCESS 2025 strategy to a focus on margin-accretive growth, efficiency, and operational excellence.

• Emphasis on upselling to the expanded installed base and targeting selected profitable markets with incremental innovation.

Financial Performance and Guidance

• Achieved highest Q4 gross margin in five years, driven by strategic actions and product launches; adjusted gross margin improved to 40.3% from 36.6%.

• Mid-term targets reaffirmed: EBIT margin north of 14% and gross margin above 40%.

• Order backlog reviewed and non-accretive orders cancelled to enhance profitability and predictability; backlog remains robust at SEK 37B, with 82% of solution backlog expected to convert within three years.

• Software revenue grew 7% year-over-year, with orders up over 20%, and SaaS now over 30% of U.S. software sales.

• Impairment of SEK 1,064M due to discontinued R&D projects, mainly in software, with a shift to external cloud platforms.