Elekta AB (publ)

Q3 performance: solid operational progress, but FX/tariffs distort reported numbers - Net sales +2% YoY (Solutions +1%, Service +3%). - Gross margin 38.3% ( +120 bps YoY) supported by product launches (Elekta Evo, Elekta ONE) and price/mix; but tariffs ~-100 bps and FX ~-130 bps pressured results. - EBIT margin 11.9% (+20 bps YoY). However, reported EBIT was impacted by a restructuring charge > SEK 400m; company guidance stands that it will be < SEK 500m.

Orders / China / book-to-bill: momentum improving; China returning to growth - Book-to-bill 1.17 in Q3 (vs 1.15 last year). Company views the rolling 12-month book-to-bill 1.09 as healthy (though they want higher). - Organic growth +2% in Q3, with Europe momentum and China returning to growth after anticorruption-driven weakness. - Management expectation for H2: double-digit growth in orders and revenue, specifically ~10% in China (orders and sales) in H2. - China competitiveness view (important/surprising context): market “underpenetrated” with pent-up demand; they remain market leader (high 30% share) even with competitive pressure from United Imaging (O-ring linac / adaptive radiotherapy traction).

U.S. update: key step—Evo approval enabling funnel + backlog conversion - Evo approval received 16 Jan; by end of quarter they report substantial U.S. order growth year-to-date as uncertainty resolved. - They are converting Versa HD orders into Evo and upgrading to Iris, and see a funnel expansion (won’t quantify new order share, but expects continued traction as in Europe). - Core commercial challenge remains: Americas revenue down -6% in Q3 due to depleted backlog, though they highlight double-digit order growth year-to-date as the needed fix.