First quarter

• In constant exchange rates, net sales increased by 3 percent driven by Europe. Reported sales in SEK decreased by 5 percent amounting to SEK 3,646 M (3,825).
• Book-to-bill ratio of 1.05 (1.10) supported by continued strong order growth for Elekta Evo.
• Lower adjusted gross margin of 37.0 percent (37.8) due to changes in FX and tariff costs with a total impact of 190 basis points.
• Adjusted EBIT amounted to SEK 235 M (283), corresponding to a margin of 6.5 percent (7.4).
• Net income was SEK 106 M (71) and earnings per share before and after dilution was SEK
  0.28 (0.18).
• Cash flow after continuous investments improved by SEK 529 M YoY amounting to SEK -361 M (-891).

¹ Compared to last fiscal year based on constant exchange rates.
² Compared to last fiscal year May 2024 – Apr 2025 based on constant exchange rates
³ Adjusted gross margin = Gross margin excluding items affecting comparability, see page 28.
⁴ Adjusted EBITDA = EBITDA excluding items affecting comparability, see page 28.
⁵ Adjusted EBIT = Operating income (EBIT) excluding items affecting comparability including the R&D impairment cost, see page 29.
⁶ 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 30.

Improved cash flow and solid performance in Europe

First quarter summary
Despite a slight decline in orders during the first quarter, our book-to-bill ratio remains above 1, reflecting a healthy business environment. Net sales at constant exchange rates grew by 3 percent, primarily driven by strong performance in Europe, where our latest linear accelerator, Elekta Evo, and our new software suite, Elekta ONE, are gaining traction as online adaptive treatment capabilities continue to set new benchmarks in the market.
 
The adjusted gross margin in Q1 was impacted by normal seasonality and continued negative FX effects, resulting in a year-over-year decrease to 37.0 percent (37.8). In addition, this quarter had a negative impact from tariffs of SEK 33 M, which weighed on the margin performance by 90 bps. The negative impact was partly offset by price improvements. Adjusted EBIT margin for the first quarter came in at 6.5 percent, compared to 7.4 percent in the same period last year. The decline was primarily driven by higher amortization and lower capitalization, although this was partly offset by reduced selling and administrative expenses, reflecting the effect from our continued cost-saving initiatives. Operating cash flow after continuous investments improved by SEK 529 million, reaching SEK -361 million in the first quarter. This improvement was primarily driven by improved working capital management.
 
Investor update
On June 10, we held an Investor Update with the purpose of providing an update of our progress across several key projects as well as presenting the strong fundamentals of the radiation therapy industry. We reiterated the roadmap to achieve our mid-term financial objectives. This includes restoring the gross margin to pre-pandemic levels and reaching an EBIT margin of at least 14 percent. Key drivers are growing volumes, enhanced pricing supported by new product launches, an improved product mix, and accelerated expansion in mature markets. As part of our commitment to operational excellence, we also presented the result of a proactive order review aimed at increasing the quality of the backlog to improve profitability and predictability.
 
Commercial milestones
During the quarter, we delivered several important commercial wins with Elekta Evo and our software suite Elekta ONE. For example, we concluded a comprehensive deal including some of our most advanced solutions to the University of Texas Southwestern. Leksell Gamma Knife received FDA 510(k) clearance for treating a certain type of epilepsy, which is an important step towards expanding the scope of radiosurgery. We have also noted that the ERECT trial, demonstrating Elekta Unity’s capability to treat prostate cancer while preserving erectile function, has gained significant attention.
 
Outlook
We expect net sales for Q2 to be negatively impacted by a continued weak US development as well as a negative effect from last year's low order intake in China. However, we expect sales in China to start to recover during the second half of 2025/26. Furthermore, we expect a continuous negative impact on earnings from FX at current exchange rates and from tariffs in Q2. We reiterate our full year 2025/26 outlook, where we expect net sales in constant currency to grow year-over-year.
 
I would like to end my CEO comment by welcoming Jakob Just-Bomholt as Elekta’s new CEO. Jakob is a highly experienced international executive with a successful career and CEO positions in various global industries, including the medtech sector. Jakob will assume his new role as CEO on September 1.

Jonas Bolander
President and CEO