Elekta Ab (publ) Stock Earnings Reports

Key takeaways for investors: Elekta reported modest top-line growth in Q3 with net sales up 2% in constant currencies, driven by strong performance in Europe and most of APAC while the U.S. and China were weaker. Orders were robust (21% growth in constant FX) and book-to-bill was healthy at 1.15, with nearly 50% of Linac orders in Europe being the newly launched Elekta Evo. Profitability showed improvement at the gross-margin level (adjusted gross margin 37.1%) and adjusted EBIT margin rose to 11.7%, though amortization from recent product launches is a headwind. Service revenue grew strongly (+10%) while solution sales declined (-4%), and software adoption (Elekta ONE suite) is accelerating. Cash generation was a highlight: Q3 cash flow after continuous investments reached SEK 730m (a Q3 record), rolling 12-month operating cash flow SEK 2.38bn and cash conversion of 79% (above the 70% target). Cost actions are progressing (SEK 264m annual run-rate savings announced YTD; implementation costs reported). Management adjusted guidance: they now expect FY 2024–25 net sales to be broadly stable and EBIT margin to be lower year-over-year due to near-term U.S. and China timing issues, but reaffirm a medium-term target of EBIT margin of 14%+ driven by new product rollouts, software and after-sales/upgrades. Key risks/variables to monitor: timing of Evo regulatory clearance in the U.S., conversion of backlog to installations (regional timing effects), rising amortization, and service material-cost pressure.