Elekta (EKTA) Q4 24/25 earnings summary

Executive summary

• Q4 gross margin reached 40.3%, the highest in five years, with record EBIT driven by product launches, software growth, and improved mix.

• Book-to-bill ratio was 1.09 for the year and 1.12 in Q4, reflecting a solid sales pipeline and future growth potential, supported by new products and China recovery.

• Net sales increased by 1% for the year and 6% in Q4 (constant currency), led by Europe and APAC, while U.S. sales declined.

• Non-cash impairment of SEK 1,064M–1.64B in Q4 due to discontinued R&D projects and a shift in software strategy, significantly impacting net income.

• Strong cash flow after investments at SEK 1,248M in Q4 supports a proposed unchanged dividend of SEK 2.40 per share.

Financial highlights

• Net sales up 1% year-over-year in constant currency for FY 2024-2025; Q4 sales up 6%, led by Europe and APAC.

• Adjusted gross margin for the year at 37.8%; Q4 at 40.3%, the best Q4 in five years.

• Adjusted EBIT margin for the year at 11.6%; Q4 at 16.3%, a record high.

• Net income for the year SEK 240M, with Q4 net income negative SEK 380M to SEK -381M, mainly due to impairment.

• Operating cash flow after investments improved to SEK 1,056M for the year; Q4 cash flow SEK 1,248M.

Outlook and guidance

• Net sales expected to grow year-over-year in FY 2025-2026 despite macroeconomic and political uncertainties.

• Gross and EBIT margins anticipated to expand, targeting pre-pandemic gross margin levels (north of 40%) and EBIT margin of 14%+ midterm.

• Q1 2025-2026 expected to show normal seasonal lower sales and negative FX effects.