Elekta (EKTA) Q1 25/26 earnings summary

Executive summary

• Net sales grew 3% in constant currency, driven by strong European performance and new product launches, while reported sales declined 5% due to currency effects and lower volumes in China and the US.

• Adjusted gross margin declined to 37% (from 37.8%), mainly due to FX and tariff costs, partly offset by price improvements and product/market mix.

• Adjusted EBIT margin fell to 6.5% (from 7.4%), impacted by lower gross margin and higher net R&D costs, with cost-saving initiatives providing some relief.

• Net income increased 50% year-over-year to SEK 106 million, with adjusted EPS at SEK 0.31.

• Operating cash flow after investments improved by SEK 529 million year-over-year to SEK -361 million, mainly due to better working capital management.

Financial highlights

• Net sales up 3% in constant exchange rates; EMEA up 15%, Americas and APAC down 4%.

• Adjusted gross margin at 37%, negatively affected by FX and tariffs (190 basis points impact).

• Adjusted EBIT margin at 6.5%, down 90 basis points year-over-year.

• Adjusted EPS at SEK 0.31, down from SEK 0.41 year-over-year.

• Rolling 12-month cash conversion at 92%, above the 70% target.

Outlook and guidance

• Q2 net sales expected to be negatively impacted by weak US performance and low prior-year order intake in China; recovery in China anticipated in H2 2025/26.

• Continuous negative impact from FX and tariffs expected in Q2.

• Full-year 2025-2026 outlook reiterated: net sales in constant currency expected to grow year-over-year.

• Roadmap to restore gross margin to pre-pandemic levels and achieve at least 14% EBIT margin remains in place.

• No commitment to organic growth in Q2; margin expansion for the full year remains an ambition but not explicitly guided.