Elekta AB’s shares fell 4.29% to SEK52.45 on Thursday, the lowest level since mid-August, after the Swedish radiation-therapy equipment manufacturer reported weaker-than-expected first-quarter sales and a deepening decline in its Asia-Pacific (APAC) market.
Group organic sales declined 2.1% year-over-year to SEK3.54 billion, missing the 0.8% growth consensus from Jefferies and S&P Global Visible Alpha. The APAC region saw organic sales drop 6%, accelerating from a 3% decline in the prior quarter. China, a key market for Elekta, posted a 16% decline in sales amid ongoing market weakness.
Profitability improved despite the revenue shortfall. Adjusted earnings before interest and taxes (EBIT) surged 68% to SEK395 million, beating the SEK313 million consensus. The adjusted EBIT margin expanded to 11.2%, up from 6.4% a year earlier and ahead of the 8.6% estimate. Analysts 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. However, Jefferies noted that order intake has averaged a 2.5% decline over the past 18 months, signaling persistent softness in demand. The brokerage added that any recovery is likely to be back-loaded, with limited contributions from new products expected to constrain growth in the fiscal year 2026/27.
Elekta reiterated its full-year guidance for fiscal 2026/27, targeting organic sales growth of 2%–4% and an adjusted EBIT margin of 12.5%–13.5%. The company’s performance contrasts with the broader OMX Stockholm 30 index, which was up about 0.2% on the day.
