C-Rad AB: Solid quarter in a wait-and-see market

First quarter January-March

• Order intake increased by 5 percent to MSEK 96.5 (91.6), 5 percent at constant exchange rates.

• Revenue increased by 1 percent to MSEK 118.8 (118.0), flat at constant exchange rates.

• EBIT amounted to MSEK 10.0 (14.1), corresponding to a margin of 9 (12) percent. Excluding negative unrealized currency effects of MSEK -11.2 (2.3) relating to the revaluation of operating balances, EBIT amounted to MSEK 21.2 (11.9), corresponding to a margin of 18 (10) percent.

• Profit after tax amounted to MSEK -8.1 (16.1). Adjusted for unrealized currency effects of a total of -24.8 (18.1) MSEK related to the revaluation of operating balances and cash balances, profit after tax amounted to MSEK 16.7 (10.0).

• Earnings per share amounted to SEK -0.24 (0.47). Adjusted for unrealized currency effects, earnings per share amounted to SEK 0.49 (0.30).

• Cash flow from operating activities amounted to SEK 25.7 (16.5).

• On May 5, C-RAD announced medium-term financial targets; average organic growth to exceed 10 percent and the operating margin (EBIT margin) to reach 25 percent. At least 30 percent of the net profit will be returned to shareholders.

CEO comment
The organisation is working hard to navigate the current macroeconomic and geopolitical environment. We delivered a stable quarter, with increased order intake and an operating margin that was negatively impacted by unrealised currency effects, but the underlying profit is still solid. Our strategy remains firm, focusing on delivering world-leading products, increasing market presence and growth, and developing the service business. During the quarter, we received a prestigious proton order in the US, as well as several strategically important orders from clinics that use Varian's linear accelerators. We also strengthened our relationships with existing customers, achieving strong growth in the service business in both EMEA and APAC.

Order intake for the first quarter amounted to MSEK 97 (92), representing a growth of 5 percent compared with Q1 last year. The large installed base of C-RAD systems provides a growing platform for service contracts. Services increased by 58 percent this quarter compared with Q1 last year.

Order intake for the Americas region decreased by 21 percent and has been affected by the uncertainty created by the adverse effects of tariffs in the US, where several planned investments have been delayed. Despite this, we have obtained prestigious contracts for several Varian linear accelerators, as well as a proton contract for the state of Wisconsin. The EMEA markets remain cautious, but our focus on establishing reference clinics and increasing market presence has paid off and order intake increased by 15 percent during the quarter. We gained business in the UK, Turkey, Poland, France and Germany, among others. In Germany, our customer DTZ Berlin has made further investments in improving the clinic's workflow. We also secured a number of important service contracts during the quarter, including new contracts and extensions of existing contracts. Interest in SGRT in APAC remains high and order intake increased by 15 percent. For example, we won a major contract in Taiwan which included SGRT systems for several hospitals. Australia continues to implement SGRT across the country and in China we hold a strong position within SGRT solutions for proton systems. We are at an early stage on the Indian market, but it is encouraging to see demand increasing and we received a number of important orders from research hospitals in different parts of the country during the quarter.

Revenues in the first quarter amounted to MSEK 119 (118). The Americas region had a strong quarter, with revenues increasing by 35 percent to MSEK 34 (25) as delayed deliveries from the fourth quarter were realised during this quarter. Revenues for EMEA decreased by 39 percent to MSEK 36 (58). This decline is the result of a weak market and order intake in EMEA in 2024. The high order intake in APAC in 2024 contributed to a 41 percent increase in revenues in APAC to MSEK 50 (35).

We have set ourselves ambitious goals, but given the challenges on the market, I am satisfied with our work and commitment to increase market presence and strengthening of our customer relationships. Work also continued during the quarter to strengthen both the organisation and our offering and we have implemented a number of measures to streamline operations and establish good cost control.

Operating profit was positively affected by a slight improvement in gross margin and lower operating costs, but unrealised currency effects of MSEK 11 had a negative impact. Operating profit amounted to MSEK 10 (14), corresponding to an EBIT margin of 9 percent (12 percent). Adjusted for unrealised currency effects, the operating margin was 18 percent (10 percent).

Clear strategic focus and priorities amid short-term market uncertainty
There is considerable uncertainty due to both geopolitics and tariffs on all our markets. In the short term, it is difficult to assess how the market will develop. In the long term, we can see a significant growing interest in SGRT as a standard of care for better radiotherapy treatment on all markets.

It is therefore important to continue to pursue our clearly defined goals and strategies to gradually strengthen our business. We do this by focusing on the following strategic areas:

• Increase order intake and revenue by gaining market shares and growing the existing offering in the US, on advanced markets in EMEA and on selected emerging markets.

• Continue to invest in product innovation through product development of the existing portfolio and launch new complementary solutions and collaborations.

• Continue to develop and grow the service business. The service offering is a key contributor to customer satisfaction and long-term business relationships.

• Continue working to build a resilient business to achieve profitable growth. This includes streamlining operations to achieve scalability in operating profit while also generating stable cash flow.

New products bring new opportunities
It has been a busy start to the year and we have just finished the ESTRO trade show, where we launched new patient-centred functionality with a focus on clinical workflow, developed in close consultation with strategic customers. At ESTRO, we also presented our new Catalyst+LITE offering for the first time, which is designed for clinics that are at the beginning of their SGRT journey for safe patient positioning.

Financial targets
Our ambition and guidance to investors is that, in the medium-term, we will have an average organic growth exceeding 10 percent, the operating margin will reach 25 percent and at least 30 percent of the net profit will be returned to shareholders.

I look forward to an exciting year ahead, together with our dedicated and passionate team, our partners and our hard-working customers. Together, we are part of the important fight to improve the lives, both during and after treatment, of cancer patients all over the world.

Uppsala May 7th, 2025

Cecilia de Leeuw, President & CEO
C-RAD AB (publ)

Please find the full report at: Financial Reports | C-RAD

This document has been prepared in both a Swedish and English version. In the event of
any deviations, the Swedish version shall prevail.

C-RAD will hold a telephone conference at 11:00 am (CET) Wednesday, May 7, 2025.

If you wish to participate via webcast please use the link below. You can ask questions verbally via the webcast.
https://c-rad.events.inderes.com/q1-report-2025/register

If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://events.inderes.com/c-rad/q1-report-2025/dial-in

For further information:

Cecilia de Leeuw, CEO, [phone], [e-mail]
Linda Frölén, CFO, [phone], [e-mail]

About C-RAD

C-RAD develops surface-guided imaging solutions for radiation therapy to allow highly accurate dose delivery to the tumor, and at the same time, to protect healthy tissue from unwanted exposure. Using high-speed 3D cameras combined with augmented reality, C-RAD supports the initial patient setup process and monitors the patient's motion during treatment to ensure high confidence, an efficient workflow, and improved accuracy. C-RAD monitors the patient's motion without the use of tattoos or additional imaging dose, to deliver the highest level of patient safety and comfort.

C-RAD AB is listed on NASDAQ Stockholm.

For more information on C-RAD, please visit http://www.c-rad.com

This information is information that C-RAD is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-05-07 08:00 CEST.