Elekta (EKTA) Q3 24/25 earnings summary

Executive summary

• Net sales grew 2% year-over-year in constant currencies to SEK 4,695M, driven by strong performance in Europe and APAC, while the US and China declined.

• Order growth accelerated in Q3, with all regions and business lines contributing; book-to-bill ratio reached 1.15, up from 0.98 year-over-year.

• Adjusted gross margin improved to 37.1% due to price increases and favorable product mix, especially from services.

• Adjusted EBIT margin rose to 11.7%, supported by gross margin gains and higher amortization from recent product launches.

• Record high Q3 cash flow after investments at SEK 730M, supported by higher EBITDA, lower investments, and reduced working capital.

Financial highlights

• Service business grew 10% year-over-year, while solution sales declined 4% due to lower US and China volumes.

• Net income reached SEK 336M; EPS was SEK 0.89, up from SEK 0.80 last year.

• Adjusted EPS reached SEK 0.94, up from SEK 0.88 year-over-year.

• Rolling 12-month cash flow from operating activities was SEK 2.38B; cash conversion at 79%.

• Cost reduction initiatives delivered SEK 264M in annual run-rate savings for the first nine months, ahead of plan.

Outlook and guidance

• Full-year 2024-25 net sales expected to be broadly stable; EBIT margin to be lower than 2023-24.

• Targeting EBIT margin of 14% or higher beyond 2024-25, driven by product portfolio strength and demand.

• Near-term outlook cautious for US and China due to lower installation volumes and regulatory timing.