Elekta (EKTA) Q1 26/27 earnings summary

Executive summary

• Profitability improved significantly in Q1, with adjusted EBIT margin rising to 11.2% from 6.5% year-over-year, driven by a new operating model, cost savings exceeding SEK 500 million, and lower selling/admin costs.

• Net sales declined 2% year-over-year, mainly due to lower sales in APJ, China, and TIMEA, while Americas and Europe showed growth.

• Order intake increased for the third consecutive quarter, with a book-to-bill ratio of 1.11, supporting future revenue growth.

• The company reaffirmed its full-year guidance for 2%-4% net sales growth and 12.5%-13.5% adjusted EBIT margin, focusing on sustainable margin expansion and operational excellence.

• The new regional P&L structure and operating model were fully implemented, aligning reporting with internal management.

Financial highlights

• Net sales: SEK 3,536M, down 2% year-over-year; adjusted gross margin rose to 42.6% (from 37.0%), aided by software, services, price increases, and a US tariff refund.

• Adjusted EBIT increased 68% to SEK 395M (235), with net income up 146% to SEK 261M (106); adjusted EPS was SEK 0.69 (up from SEK 0.31).

• Free cash flow before dividends and M&A improved by SEK 154M year-over-year to SEK -266M, despite higher seasonal inventory build and lower R&D investments.

• Gross margin benefited from SEK 53M in US tariff refunds (150 bps impact), with further refunds expected in Q2.

• Negative FX impact reduced gross margin by 20 bps and EBIT margin by 30 bps.

Outlook and guidance

• Full-year 2026/27 outlook reiterated: net sales growth of 2%-4% in constant currency and adjusted EBIT margin of 12.5%-13.5%.

• Q2 expected to return to positive sales growth, with all regions anticipated to grow, led by TIMEA and Americas.

• Growth expected from all regions and services, with improved pricing and cost efficiencies.

• Market recovery in China and continued momentum in the US support the outlook.