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1. Company Snapshot

1.a. Company Description

Elekta AB (publ), a medical technology company, provides clinical solutions for treating cancer and brain disorders worldwide.The company offers Versa HD, a brain metastases solution; Elekta Unity, a MR-Linac technology; Elekta Harmony, a linear accelerator; Elekta Infinity for treating a range of patients with simple-to-complex radiotherapy needs; Elekta Synergy, a digital accelerator for advanced image-guided radiation therapy; treatment management solutions; automated and integrated quality assurance solutions; and hardware and software motion management technology.It also provides MOSAIQ Plaza for multidisciplinary cancer care; Elekta Axis Cloud, a managed hosting service; Elekta Studio, an image-guided brachytherapy solution; ImagingRing, a mobile CT scanner; Oncentra Brachy, a smart tool that facilitate repetitive tasks; Venezia applicator that enables the radiation oncologist to treat locally advanced cervical cancer; Elekta Flexitron afterloader for enabling the precise execution of all steps in the workflow; and Geneva, an applicator for cervical cancer treatment.


In addition, the company offers Leksell Gamma Knife Icon for personalized radiation treatment; Leksell Gamma Knife Perfexion, a tool for neurosurgeons; Leksell Gamma Knife Lightning for accelerated radiosurgery.Further, it provides neurosurgery products comprising Leksell Vantage Stereotactic System for intracranial neurosurgery; and Leksell Stereotactic System or minimally invasive stereotactic neurosurgery.The company was incorporated in 1972 and is headquartered in Stockholm, Sweden.

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1.b. Last Insights on EKTA

Elekta AB (publ) recent performance was negatively driven by weaker sales expectations in China and the United States, prompting the company to lower its full-year guidance. The company's robust order growth and record cash flow in Q3 2025 were overshadowed by headwinds in the US and China, impacting overall sales and profitability. Furthermore, the departure of CEO Gustaf Salford has raised concerns about the company's ability to improve profitability and drive growth.

1.c. Company Highlights

2. Elekta's Q2 Results: A Mixed Bag with Restructuring Efforts

Elekta reported a 1% organic growth in Q2, with a gross margin of 37.9%, a 220 basis points improvement year-over-year. The adjusted EBIT margin was 10.1%. Earnings per share (EPS) came in at 0.6, below estimates of 0.72. Revenue growth was sluggish, with the US experiencing an 8% decline, while Europe saw 11% growth. China declined double-digits but showed positive order growth. The company's book-to-bill ratio for China was 1.3 for the quarter, indicating a strong pipeline.

Publication Date: Dec -02

📋 Highlights
  • Financial Improvements:: Gross margin improved to 37.9% (up 220 bps YoY), adjusted EBIT margin at 10.1%, and net debt reduced by SEK 700M YoY.
  • Order Backlog Review:: SEK 2.2B in orders canceled due to stricter criteria, with no revenue impact in 2025-26 or cash flow effects.
  • Restructuring Impact:: 10% workforce reduction (450 roles), targeting SEK 500M+ annual cost savings, with 30% affecting COGS and 70% OpEx.
  • Regional Performance:: Europe grew 11% in Q2, driven by Elekta Evo adoption, while China saw double-digit revenue declines but positive order growth (book-to-bill 1.3Q).
  • Strategic Goals:: Aim to exceed market growth long-term, restore gross margin to pre-pandemic levels, and achieve EBIT margin above 14% (details at Capital Markets Day).

Restructuring and Cost Savings

Elekta has initiated a comprehensive review of its operations, resulting in a new operating model aimed at increasing velocity, agility, and customer intimacy. This involves a simplified organizational structure with a decentralized model, featuring regional-based P&L. The restructuring is expected to yield targeted cost savings of no less than SEK 500 million, with a full impact on Q1 '26-'27. The company has cut around 450 roles, mainly in managerial positions, to increase speed, execution, and accountability.

Regional Performance and Product Updates

Elekta's software backlog and deliveries in Europe have contributed to the region's improved margins. The software book-to-bill remains positive in EMEA. The company has seen a significant impact from its Elekta Evo product, with a notable increase in units sold. The US is expected to bounce back once the Evo platform receives FDA approval. Elekta has already received domestic approval for Evo in China and plans to roll out Evo globally.

Valuation and Outlook

With a P/E Ratio of 73.63 and an EV/EBITDA of 12.73, the market seems to be pricing in significant growth prospects. However, analysts estimate next year's revenue growth at -4.0%. The company's ROIC is 2.87%, and ROE is 3.15%, indicating room for improvement. Elekta reiterates its full-year '25-'26 outlook, expecting net sales growth in constant currency. The company aims to grow at or above the market rate in the mid to long term.

Tariffs and FX Impact

Elekta has seen some impact on gross margin due to tariffs, but the company is working to mitigate this through pricing and productivity measures. FX had a negative impact of 50 basis points on the adjusted gross margin and 60 basis points on the adjusted EBIT margin. Most orders in the backlog have some prepayment attached, particularly those from the private sector.

3. NewsRoom

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Dec -01

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Nov -28

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Advanced Radiotherapy is a game-changer for India's cancer care burden

Nov -27

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Elekta AB (EKTAF) Q2 2026 Earnings Call Highlights: Navigating Growth and Challenges in a ...

Nov -26

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Europe Stereotactic Neuro-Navigation System Research Report 2025 | Market to Surpass $1 Billion by 2035 with Medtronic, Brainlab, and Elekta at the Forefront

Sep -16

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Elekta (OM:EKTA B) Appoints Klara Eiritz As New CFO

Sep -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.82%)

6. Segments

Hardware

Expected Growth: 5%

Elekta AB's 5% growth in Hardware segment is driven by increasing demand for radiation therapy and oncology solutions, expansion into emerging markets, and strategic partnerships. Additionally, advancements in digitalization and automation of cancer care, as well as growing adoption of stereotactic body radiation therapy (SBRT) and brachytherapy, contribute to the segment's growth.

Services (Including Software)

Expected Growth: 7%

Elekta AB's 7% growth in Services (Including Software) is driven by increasing demand for cancer treatment and radiation therapy, expansion into emerging markets, and strategic partnerships. Additionally, the company's software solutions, such as Monaco and MOSAIQ, are experiencing high adoption rates, contributing to the segment's growth.

Software

Expected Growth: 5%

Elekta AB's software segment growth is driven by increasing demand for cancer treatment and radiation therapy, adoption of digital healthcare, and strategic partnerships. The company's innovative solutions, such as Monaco and Unity, are gaining traction, while expansion into emerging markets and growing recurring revenue streams also contribute to the 5% growth rate.

7. Detailed Products

Gamma Knife Icon

A non-invasive radiosurgery system for treating brain disorders and cancer

Elekta Unity

A high-field magnetic resonance imaging (MRI) guided radiation therapy system

Versa HD

A high-definition dynamic radiosurgery system for treating cancer and brain disorders

Monaco Treatment Planning System

A radiation therapy treatment planning system for cancer treatment

MOSAIQ Oncology Information System

A comprehensive oncology information system for managing patient data and treatment plans

EstroCare

A patient-centric software solution for managing radiation therapy treatment plans

8. Elekta AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Elekta AB (publ) operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the company's products and services can be substituted with alternative treatments, such as surgery or chemotherapy, which poses a moderate threat.

Bargaining Power Of Customers

Elekta AB (publ) has a diverse customer base, including hospitals and cancer centers, which reduces the bargaining power of individual customers. Additionally, the company's products and services are often critical to customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Elekta AB (publ) relies on a few key suppliers for critical components, which gives them some bargaining power. However, the company's large size and global presence also give it some negotiating power, mitigating the threat.

Threat Of New Entrants

The radiation therapy market has high barriers to entry, including significant capital expenditures and regulatory hurdles, making it difficult for new entrants to join the market.

Intensity Of Rivalry

The radiation therapy market is highly competitive, with a few large players competing for market share. Elekta AB (publ) faces intense competition from companies like Varian Medical Systems and Siemens Healthineers, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.67%
Debt Cost 4.30%
Equity Weight 59.33%
Equity Cost 9.07%
WACC 7.13%
Leverage 68.54%

11. Quality Control: Elekta AB (publ) passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Fielmann

A-Score: 6.0/10

Value: 5.3

Growth: 5.0

Quality: 7.3

Yield: 4.4

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
ConvaTec

A-Score: 4.8/10

Value: 2.9

Growth: 5.3

Quality: 6.0

Yield: 3.1

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Ypsomed

A-Score: 3.9/10

Value: 2.9

Growth: 8.2

Quality: 5.7

Yield: 0.6

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Tecan

A-Score: 3.6/10

Value: 4.4

Growth: 4.1

Quality: 5.7

Yield: 2.5

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Elekta

A-Score: 3.5/10

Value: 4.3

Growth: 4.0

Quality: 3.1

Yield: 6.9

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Amplifon

A-Score: 3.2/10

Value: 4.3

Growth: 5.4

Quality: 4.8

Yield: 2.5

Momentum: 0.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

56.8$

Current Price

56.8$

Potential

-0.00%

Expected Cash-Flows