Elekta AB (EJX) Q1 2027 Earnings Report

The call presented a balanced picture: strong execution on cost savings and clear improvements in margins and cash generation provided encouraging evidence that the company’s turnaround is underway. However, top‑line challenges remain — net sales declined, solutions sales were weak, China and APJ showed regional softness, rolling orders lagged and working capital rose. Management reaffirmed FY guidance and expects Q2 revenue improvement driven by backlog and U.S. product momentum. Overall the company appears to be stabilizing and improving profitability while still working through material revenue and regional challenges.

Elekta reaffirmed fiscal 2026/27 guidance of net sales growth of 2–4% in constant currency and an adjusted EBIT margin target of 12.5–13.5%, and said it expects positive sales growth in Q2 (and for the first half); Q1 actuals were net sales −2% (solutions −9%, service +5%), book‑to‑bill ~1.11 with order growth ~3%, adjusted gross margin 42.6% (vs 37% LY) and adjusted EBIT margin 11.2% (EBIT cash margin 11.4%), net income SEK 261m and adj. EPS SEK 0.69; free cash flow before dividends & M&A was negative SEK 266m (improved SEK 154m year‑on‑year) despite a seasonal inventory build. Management highlighted more than SEK 500m of operating‑model savings (headcount down from ~4,500 to below 4,000), continued R&D spend around 10% of revenue, an EUR 100m EIB R&D facility, a SEK 53m tariff refund in Q1 (≈150 bps impact overall, ≈490 bps in Americas) with another ~USD 3m expected in Q2, FX headwinds of ~20–30 bps on margins, COGS inflation roughly 3% and ongoing COGS‑reduction programs, and cited a ~6% global radiotherapy market growth with Americas/Europe expected to drive near‑term revenue recovery and China/TIMEA improving into Q2.