Elekta B Shs Adr Stock Earnings Reports

Key takeaways for investors: Elekta reported Q3 FY2024-25 net sales up 2% in constant currencies, driven by Europe and most APAC markets, while the U.S. and China were weaker. Orders grew 21% in constant currencies and book-to-bill was strong at 1.15. Adjusted gross margin improved to 37.1% (helped by price increases and a higher share of service) and adjusted EBIT margin rose slightly to 11.7%; EPS was SEK 0.89 (SEK 336 million net income). Service revenue grew 10% YoY while solution sales declined 4%. Cash generation was a notable strength: Q3 cash flow after investments was a record SEK 730 million, rolling 12-month operating cash flow SEK 2.38 billion and cash conversion 79% (above the 70% target). Cost reduction actions have reached SEK 264 million in annual run-rate savings (first nine months), with implementation costs of SEK 167 million. Elekta continued product rollouts: Elekta Evo (CT‑Linac with Iris imaging) and Elekta ONE Planning saw rapid uptake in Europe (c.50% of Linac orders in Europe in Q3 were Evo), first clinical Evo treatment delivered, and Unity continues to win competitive deals. Management has adjusted full‑year guidance: they now expect net sales to be broadly stable and full‑year EBIT margin to be lower year‑over‑year due to near‑term weaker volumes in the U.S. and China; however, they target an EBIT margin of 14% or higher beyond the fiscal year, driven by product mix, software, services and ongoing commercialization. Near‑term risks include regulatory timing for Evo (FDA clearance date not disclosed), slower installations in the U.S. and timing of Chinese procurements, while medium‑term upside is tied to continued Evo/ONE rollouts, upgrades, software monetization and service growth.