Elekta B Shs Adr Stock Earnings Reports

Elekta reported a modest Q2 with 1% organic revenue growth and a book-to-bill of ~1.0 (rolling 12 months 1.09). Gross margin improved to 37.9% (≈220 bps YoY) and adjusted EBIT margin reached 10.1%, with net income SEK 229m and adjusted EPS SEK 0.65. Cash generation strengthened (YTD cash after continuous investments ~SEK 900m better vs prior year), and net debt fell ~SEK 700m YoY. Management completed a firmer order backlog review, cancelling SEK 2.2bn of older orders (predominantly in MEA); management says this has no revenue or cash-flow impact. CEO Jakob Just-Bomholt outlined a new operating model (“simplify, empower, speed”) to accelerate execution, decentralize regional P&Ls and increase span of control; as a result Elekta will reduce headcount by ~10% (~450 roles) targeting at least SEK 500m in annual run-rate cost savings (impact visible from Q4 FY25-26 and fully in Q1 FY26-27). R&D remains high (~12% of sales) but will be more commercially focused. Key commercial notes: Europe showed strength (product launches, upgrades, Elekta Evo & Iris momentum), China orders are recovering with improving book-to-bill, while the U.S. needs a commercial turnaround (Evo U.S. approval awaited; management expects FDA decision within the 180-day review window). Company reiterated full-year FY25-26 guidance: organic net sales growth in constant currency and expects China recovery in H2; tariffs and FX continue to negatively impact margins at current rates.