Second quarter
- In constant exchange rates, net sales increased by 1 percent mainly driven by Europe. Reported sales in SEK decreased by 6 percent amounting to SEK 4,070 M (4,341).
- The book-to-bill ratio was 1.0 (0.99), rolling twelve months ended at 1.09 (1.09).
- Higher adjusted gross margin of 37.9 percent (35.7).
- Adjusted EBIT amounted to SEK 411 M (423), corresponding to a margin of 10.1 percent (9.8).
- Net income was SEK 229 M (215) and basic earnings per share was SEK 0.60 (0.55).
- Cash flow after continuous investments amounted to SEK 358 M (-31), an improvement of SEK 389 M YoY.
- Implementation of a new operating model has been initiated aiming for increased velocity of product development, commercial execution and operational excellence to better serve customers and patients.
- As a consequence of the new operating model, a simplified and decentralized organization will be implemented leading to yearly cost savings of no less than SEK 500 M with the full effect starting Q1 2026/27.
- A second order review has been conducted resulting in a cancellation of SEK 2,197 M - based on firmer interpretation of order criteria's, ensuring a stronger foundation for a higher predictability and profitability.
| Group summary | Q2 | First six months | ||||||
| SEK M | 2025/26 | 2024/25 | ? | 2025/26 | 2024/25 | ? | ||
| Book-to-bill | 1.00 | 0.99 | 1% | 1.03 | 1.04 | -2% | ||
| Net sales | 4,070 | 4,341 | -6% | 7,716 | 8,165 | -5% | ||
| Net sales in constant exchange rates | 1% | 1 | 2% | 1 | ||||
| Adjusted gross margin 2 | 37.9% | 35.7% | 2.1 ppts | 37.5% | 36.7% | 0.8 ppts | ||
| Adjusted EBITDA 3 | 725 | 745 | -3% | 1,273 | 1,345 | -5% | ||
| Adjusted EBITDA margin 3 | 17.8% | 17.2% | 0.7 ppts | 16.5% | 16.5% | 0 ppts | ||
| Adjusted EBIT 4 | 411 | 423 | -3% | 646 | 706 | -9% | ||
| Adjusted EBIT margin 4 | 10.1% | 9.8% | 0.3 ppts | 8.4% | 8.7% | -0.3 ppts | ||
| Gross margin | 37.8% | 35.5% | 2.2 ppts | 37.3% | 36.2% | 1.1 ppts | ||
| EBITDA | 704 | 706 | 0% | 1,236 | 1,228 | 1% | ||
| EBITDA margin | 17.3% | 16.3% | 1 ppts | 16.0% | 15.0% | 1 ppts | ||
| EBIT | 390 | 388 | 0% | 609 | 562 | 8% | ||
| EBIT margin | 9.6% | 8.9% | 0.6 ppts | 7.9% | 6.9% | 1 ppts | ||
| Net income | 229 | 215 | 6% | 335 | 285 | 17% | ||
| Cash flow after continuous investments | 358 | -31 | 389 | -4 | -921 | 917 | ||
| Adjusted earnings per share before/after dilution, SEK 5 | 0.65 / 0.64 | 0.63 / 0.63 | 3% | 0.96 / 0.96 | 1.03 / 1.03 | -7% | ||
| Earnings per share before/after dilution, SEK | 0.60 / 0.60 | 0.55 / 0.55 | 9% | 0.88 / 0.88 | 0.74 / 0.74 | 19% | ||
1 Compared to last fiscal year based on constant exchange rates.
2 Adjusted gross margin = Gross margin excluding items affecting comparability, see page 29.
3 Adjusted EBITDA = EBITDA excluding items affecting comparability, see page 29.
4 Adjusted EBIT = Operating income (EBIT) excluding items affecting comparability including the R&D impairment cost, see page 30.
5 Adjusted earnings per share = Net income excluding items affecting comparability, attributable to Parent Company shareholders, in relation to the weighted average number of shares (excluding treasury shares), see page 31.
Reset to improve operational execution and profitability
Second quarter summary
Net sales at constant exchange rates increased by 1 percent driven by strong double-digit growth in Europe where our new product portfolio continues to gain market traction. The book-to-bill ratio in China was above 1.3 indicating signs of market recovery, however sales was weak during the second quarter.
The adjusted gross margin in Q2 improved year-over-year to 37.9 percent (35.7). The improvement was supported by product launches, higher share of Service, growth in specialty products (Brachy/Neuro) and price improvements. Tariffs and foreign exchange rates had a continued negative impact in the quarter. Adjusted EBIT margin for the second quarter ended at 10.1 percent, compared to 9.8 percent in the same period last year. The improvement was primarily driven by a higher gross margin and lower gross R&D spend while increased amortization and lower capitalization of R&D weighed negatively on the margin.
Operating cash flow after continuous investments improved by SEK 389 million year-over-year, reaching SEK 358 million in the second quarter. The positive development was primarily driven by improved working capital management and lower investments in intangible assets.
Reflections
In concluding my first quarter as CEO of Elekta, my conclusion is that Elekta operates in a fundamentally attractive industry, supported by a product portfolio with strong logic and high relevance. However, today we are not operating at our full potential. To enhance our profitability and market relevance, we must simplify our organizational structure, empower our teams, and ensure accountability on commitments. Midterm, we aim to regain market share through an even more focused innovation pipeline, stronger commercial execution, and a customer-first approach in our everyday actions.
Actions - costs savings and order book cancellation
During the quarter, we have reviewed and defined our short-term must-win-battles, the first of which we announced today: simplify, empower & speed. With this initiative, we aim to implement a new operating model leading to simplification and decentralization of the organization, increasing decision speed and accountability. We are transitioning to a regionally based P&L organization that brings decisions closer to customers. We will reduce organizational layers from nine to six and significantly widen the span of control for leaders to ensure speed in execution. As a consequence of a zero-based review of the organization, Elekta will reduce its global workforce by approximately 450 employees with a major effect on managerial positions. We expect full run-rate impact starting in Q1 2026/27. Fully implemented, the program is expected to deliver no less than SEK 500 M in annualized cost savings. Restructuring charges associated with the cost savings will be presented at latest in conjunction with our Q3 earnings release.
As part of our commitment to enhance commercial excellence, we have carried out a comprehensive review of our existing orders to further improve the overall quality of our backlog. Compared to the order review presented in June, we have implemented a firmer interpretation of the order criteria, ensuring a stronger foundation for improving both predictability and profitability. The review resulted in a cancellation valued at SEK 2,197 M and the revised figure for the backlog now stands at healthy SEK 34,150 M. The adjustment has no impact on the revenue forecast as well as no cash flow impact is anticipated.
Outlook
We reiterate our full-year 2025/26 outlook, where we expect net sales in constant currency to grow year-over-year. Sales in China are expected to start to recover during the second half of 2025/26. Furthermore, we expect continuous negative impact on earnings from FX at current exchange rates and tariffs.
To communicate Elekta's strategy going forward, we are planning two external events in the near future. In January, we will hold a brief strategy update focusing on our selective must-win-battles. Then, in mid-June, we will host a comprehensive Capital Markets Day (CMD) in Stockholm.
Jakob Just-Bomholt
President and CEO
This information is information that Elekta AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-11-26 07:30 CET.
