C-RAD (CRAD) Q3 2024 earnings summary

Executive summary

• Q3 order intake fell 40% year-over-year to 99.6–100 MSEK, mainly due to EMEA weakness, while APAC and Americas showed growth and profitability remained solid.

• Revenues declined 10% year-over-year to 100–100.1 MSEK, but gross margin improved to 73% from 65% due to a favorable product mix and higher proton order share.

• EBIT margin remained strong at 17% in Q3, with net profit rising 42% to 15.4 MSEK and EPS up 41% to 0.45 SEK.

• Global expansion focused on Southeast Asia, Latin America, and U.S. retrofit wins, with a SEK 10 million order in Mexico after quarter-end.

• Maintained a strong product portfolio, broad interoperability, and a growing installed base, supporting future service contract opportunities.

Financial highlights

• Q3 order backlog stood at 734.7–735 MSEK, stable year-over-year.

• Gross profit for Q3 was 72.7 MSEK, with a gross margin of 73% (up from 65%).

• EBIT for Q3 was 17.4 MSEK (margin 17%), and for Jan–Sep 49.6 MSEK (margin 14%).

• Net earnings for Q3 were 15.4 MSEK; Jan–Sep net earnings reached 42.0 MSEK.

• Cash at quarter end was 118.7 MSEK, down from 142–142.4 MSEK at the start of the quarter.

Outlook and guidance

• Underlying gross margin is expected to be 63%-65%, with potential boosts in quarters with proton order deliveries; timing of future proton deliveries remains uncertain.

• Management remains confident in long-term growth, citing untapped potential in installed radiotherapy base and strong APAC momentum.

• Working capital tied up in proton orders will be released upon completion of final acceptance tests, but timing is customer-dependent and uncertain.

• EMEA expected to remain slow in coming quarters due to macroeconomic factors and fewer large tenders.

• External risks such as geopolitical instability and inflation are being closely monitored.