Elekta (EKTA) Q4 23/24 earnings summary

Executive summary

• Net sales increased by 5% year-over-year, with margin expansion across all regions and profitable growth despite Q4 challenges in mature markets.

• Launched Elekta Evo, an AI-powered, CT-adaptive linac, and expanded the Elekta One software suite, strengthening the product portfolio.

• Strong operating cash flow for the year, more than double last year, and a proposed dividend of SEK 2.40 per share.

• ACCESS 2025 strategy progressed, providing cancer care access to over 260 million people in underserved markets, targeting 300 million.

Financial highlights

• Full-year net sales increased by 5% year-over-year; Q4 net sales declined by 2% due to lower installations in Europe and the US, with APAC showing resilience.

• Adjusted EBIT margin expanded to 11.8% for the year, with Q4 margin at 13.0%, down from last year due to inflation and higher expenses.

• Adjusted gross margin for the year was 37.5%; Q4 adjusted gross margin was 36.6%.

• Adjusted EPS rose to SEK 3.62 for the year; Q4 adjusted EPS was SEK 1.15.

• Order intake in Q4 declined by 1%, with APAC up double digits, especially in China; book-to-bill ratio for Q4 was 1.28.

Outlook and guidance

• First half of FY 2024-2025 expected to be weaker due to challenging market conditions and tough comparables in Europe and China.

• Sales and profitability anticipated to pick up in the second half, driven by new product launches and productivity measures.

• Net sales expected to grow by mid-single digits for FY 2024-2025, with improved EBIT margin; long-term EBIT margin target of 14% or higher.