Elekta (EKTA) Investor update summary

Strategic direction and leadership

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

• Transition from ACCESS 2025 to margin-accretive growth, efficiency, and operational excellence, with upselling to the installed base and targeting selected profitable markets.

• Profitability and margin expansion prioritized through product mix, price increases, and productivity improvements.

Financial performance and backlog

• Q4 adjusted gross margin rose to 40.3% from 36.6%; gross margin reached its highest level in five years, supported by strategic actions and product launches.

• Mid-term targets include gross margin above 40% and restoration to pre-pandemic levels, with EBIT margin north of 14%.

• Order review led to SEK 4.9bn of cancellations; sales and new orders added SEK 1.7bn net, FX reduced backlog by SEK 4.3bn, and revised backlog stood at SEK 36.9bn.

• SEK 37bn backlog, with 82% of solution backlog expected to convert within three years.

• FY25/26 net sales expected to grow year-over-year despite market and FX headwinds.

Commercial execution and market position

• Leading positions in radiotherapy, neuro, and brachytherapy, with a global installed base exceeding 5,500 units.

• Strong momentum in Europe and China, supported by tailored regional strategies; China has 40%+ market share and local manufacturing and partnerships.

• Europe saw 6% Q4 net sales growth, driven by Elekta Evo and Elekta ONE Planning; Evo made up 60% of Linac orders in H2.

• Americas growth in high-margin devices and software; 66% of U.S. linacs are over eight years old, indicating replacement potential.

• Commercial discipline centers on profitable, executable orders, order-to-cash rigor, and continuous backlog review.