Elekta AB ser. B shares fell 4.3% to SEK52.45 on Tuesday, the lowest level since August 13, as the Swedish radiation therapy equipment maker reported weaker-than-expected first-quarter sales driven by continued weakness in Asia-Pacific markets.
Group sales declined 2.1% organically to SEK3.54 billion, missing consensus estimates of 0.8% growth from Jefferies and S&P Global Visible Alpha. The decline was led by a 6% drop in organic sales across Asia-Pacific, which accelerated from a 3% decline in the prior quarter. China sales fell 16% amid ongoing market challenges, while the broader OMX Stockholm 30 index rose approximately 0.2%.
Profitability improved significantly despite the sales decline. Adjusted EBIT surged 68% to SEK395 million, exceeding the SEK313 million consensus estimate, while the adjusted EBIT margin expanded to 11.2% from 6.4% a year earlier. Analysts at Jefferies attributed the margin improvement to pricing power, cost savings initiatives, and a SEK53 million refund of U.S. tariffs.
Order intake rose 3% in constant exchange rates to SEK3.91 billion, broadly aligning with expectations, though Jefferies noted that order intake has averaged a 2.5% decline over the past 18 months. The company reiterated its full-year 2026/27 guidance, targeting organic sales growth of 2%–4% and an adjusted EBIT margin of 12.5%–13.5%.
Analysts cautioned that sales recovery may be back-end loaded, with limited near-term contributions from new products and persistent order weakness likely to constrain performance in the 2026/27 financial year.
