Elekta AB (publ)

Q3 performance (solid but pressured by FX/tariffs) - Net sales +2% YoY (Solutions +1%, Service +3%). - Gross margin 38.3% (+120 bps YoY). Headwinds: tariffs ~-100 bps and FX ~-130 bps (FX also impacts growth/reported results). - EBIT margin 11.9% (+20 bps YoY), supported by improved gross margin and lower R&D/admin costs; but reported EBIT is hit by restructuring charges.

Orders/book-to-bill: healthy, but management wants it higher - Book-to-bill 1.17 (vs 1.15 last year). Rolling 12 months: 1.09 (healthy but “want higher”). - Organic growth ~+2%. - China and Europe remain key drivers; management highlights that Q3 is typically a strong order intake quarter due to rolling service contracts (esp. in Europe).

China & US: growth improving; US depends on Evo adoption cycle - China: “Returning to growth” in the quarter after two years affected by anticorruption; management expects ~10% double-digit order and revenue growth in China in H2 (targets apply to both orders and sales). - China competitiveness explanation: market is still underpenetrated (low linac-per-capita) and pent-up demand; company remains market leader (high 30% share) but sees share pressure from United Imaging. - China H2 growth is tied to market recovery toward pre-anticorruption unit levels. - US: Elekta Evo approval announced 16 Jan; backlog conversion from Versa to Evo is underway; management says US order growth is “substantial” relative to prior years but still low in absolute terms. Q3 revenue was affected by depleted backlog, so conversion and pipeline building are important.