Elekta (EKTA) Investor update summary

Strategic focus and market positioning

• Emphasis on profitability, margin expansion, and sustainable growth, with a shift to only accepting profitable orders and canceling non-accretive backlog items.

• Strong market positions in Europe and China, with tailored strategies for mature and emerging markets to maximize value and growth.

• Leadership in high-margin segments such as brachytherapy, neuro, and software, with a dual-engine growth model leveraging both new installations and upselling to the installed base.

• Adaptive radiotherapy and software innovation are central to product differentiation and customer value, especially with Elekta ONE and Evo platforms.

• Strategic partnerships and selective acquisitions support market access and product portfolio expansion, particularly in China and software.

Leadership and strategic direction

• Jakob Just-Bomholt appointed as new President and CEO, effective September 1, bringing international experience in growth and profitability from previous executive roles.

• Transition from ACCESS 2025 strategy to a focus on margin-accretive growth, efficiency, and operational excellence.

• Emphasis on upselling to the expanded installed base and targeting selected profitable markets with incremental innovation.

Financial performance and guidance

• Achieved record Q4 gross margin, attributed to volume growth, price increases, product mix, and productivity improvements.

• Mid-term targets reaffirmed: EBIT margin north of 14% and gross margin above 40%, with continued focus on price increases and high-margin product acceleration.

• Backlog reviewed and non-accretive orders canceled, resulting in a SEK 37 billion executable backlog, 82% of which is planned for delivery within three years.

• Software revenue grew 7% year-over-year, with orders up over 20%, and SaaS now representing a significant and growing share, especially in the U.S.

• Impairment of SEK 1,064M due to discontinued R&D projects, mainly in software, with a shift to external cloud platforms.