Elekta (EKTA) Q4 23/24 earnings summary

Executive summary

• Net sales increased by 5% year-over-year, with margin expansion and growth in all regions despite challenges in China and mature markets.

• Adjusted EBIT margin rose by 1.5 percentage points to 11.8%, with adjusted EBIT exceeding SEK 2.1 billion.

• Launched Elekta Evo, an AI-powered, CT-adaptive linac, and expanded the Elekta One software suite, strengthening the product portfolio.

• Strong operating cash flow, with SEK 850–872 million in Q4 and SEK 815 million for the year, and a proposed dividend of SEK 2.40 per share.

• ACCESS 2025 strategy progressed, providing cancer care access to over 260 million people in underserved markets.

Financial highlights

• Full-year net sales increased by 5% year-over-year; Q4 net sales declined by 2% due to lower installations in Europe and the US.

• Adjusted EBIT margin expanded to 11.8% for the year and 13% in Q4; adjusted EBIT at SEK 2,145M.

• Adjusted gross margin for the year was 37.5%; for Q4, it was 36.6%, down due to unfavorable market mix and inflation.

• Adjusted EPS rose to SEK 3.62 (from 3.11); Q4 adjusted EPS was SEK 1.15 (1.53 prior year).

• Book-to-bill ratio was 1.28 in Q4 and 1.09 for the year.

Outlook and guidance

• First half of FY 2024/25 expected to be weaker due to challenging market conditions and tough comparables in Europe and China.

• Second half anticipated to improve with new product launches and productivity measures.

• Full-year 2024/25 net sales expected to grow mid-single digit, with improved EBIT margin; long-term EBIT margin target of 14% or higher.