Fourth quarter

• In constant exchange rates, net sales decreased by 1 percent mainly driven by APAC, despite growth in China. Reported sales in SEK decreased by 8 percent amounting to SEK 4,762 M (5,156).

• Fourth quarter was impacted by items affecting comparability of SEK 1,363 M (1,040) primarily related to a non-cash impairment of intangible and tangible assets of SEK 1,096 M (1,064).

• Adjusted gross margin of 39.9 percent (40.3) negatively impacted by changes in foreign exchange rates while price increases and product launches contributed positively.

• Adjusted EBIT amounted to SEK 902 M (843), corresponding to a margin of 18.9 percent (16.3). The increase is mainly related to the change of operating model. Higher amortization and lower capitalization had negative impact of around 220 basis points YoY.

• Net income was SEK -863 M (-381) and EPS was SEK -2.27 (-1.01) before dilution and SEK -2.26 (-1.01) after dilution.

• Cash flow after continuous investments declined to SEK 1,141 M (1,248). Severance payments of SEK approximately 160 M.

Full year 2025/26

• In constant exchange rates, net sales increased by 1 percent. Reported sales in SEK decreased by 7 percent amounting to SEK 16,718 M (18,016).

• Book-to-bill ratio of 1.04 (1.09) reflecting lower business activity in emerging markets compensated by positive impact from product launches in Europe and growth in China.

• 2025/26 was impacted by items affecting comparability of SEK 1,817 M (1,207), primarily impairment of intangible assets and restructuring charges related to the change of operating model.

• Improved adjusted gross margin of 38.4 percent (37.8) supported by price increases.

• Adjusted EBIT amounted to SEK 2,051 M (2,097), corresponding to a margin of 12.3 percent (11.6). EBIT margin adjusted for capitalization and amortization (EBITC) improved to 11.2 percent (8.6).

• Net income was SEK -517 M (240) impacted by impairment and the restructuring charge. EPS was SEK -1.36 (0.62).

• Cash flow after continuous investments of SEK 1,392 M (1,056). The strongest in 5 years, in spite of severance payments of approximately SEK 300 M.

• For the fiscal year 2026/27, net sales in constant currency is expected to increase YoY, with an improvement in the EBIT margin.

• The Board of Directors proposes a dividend of SEK 2.40 (2.40) per share (paid in two instalments) for FY 2025/26.

¹ Compared to last fiscal year based on constant exchange rates.
² Adj. gross margin = Gross margin excluding items affecting comparability, page 28.
³ Adj. EBITDA = EBITDA excluding items affecting comparability, page 29.
⁴ Adj. EBIT = Operating income (EBIT) excluding items affecting comparability, page 29.
⁵ Adj. EBITC margin = EBIT adjusted for R&D capitalization and amortization, excluding items affecting comparability, page 31.
⁶ Adj. earnings per share = Net income excluding items affecting comparability, attributable to Parent Company shareholders, in relation to the weighted average number of shares (excl. treasury shares), page 30.

Strong improvement in profitability for the fourth quarter and full year
Net sales for the full year 2025/26 increased by 1 percent in constant exchange rates. Actions to reset Elekta’s operating model were completed in Q4, with annualized cost savings exceeding SEK 500 M and serving as the driver behind the improvement of the Q4 adjusted EBIT margin from 16.3 to 18.9 percent. The fourth quarter was impacted by items affecting comparability of SEK 1,363 M, with no impact on cash flow. Net debt decreased to SEK 3,191 M.

Result development
Net sales in Q4, in constant exchange rates, decreased by 1 percent year over year, primarily due to lower sales in APAC despite growth in China. For the full year 2025/26, however, net sales in constant exchange rates increased by 1 percent, driven mainly by growth in EMEA. The weaker book-to-bill ratio in the fourth quarter reflected lower business activity in emerging markets, particularly in Middle East and Southeast Asia. In addition, stricter order acceptance criteria contributed to a more selective approach to recognizing new orders. While these measures temporarily affected the book-to-bill ratio, they also reflect a more disciplined strategy focused on improving our order quality and with no impact on our growth ambition.
 
Since September last year, our primary focus has been on resetting and stabilizing the company. This is a strong foundation for our ambitions to further improve profitability and to create the right basis for driving focused innovation and growth going forward. The Group delivered a strong improvement in profitability for the full year, with the adjusted gross margin for the year increasing to 38.4 percent (37.8), reflecting the positive contribution from product launches and improved pricing. In the fourth quarter, however, adjusted gross margin declined slightly to 39.9 percent (40.3), as the benefits from pricing and new products were offset by the negative effects of currencies. Adjusted EBIT margin for the full year improved to 12.3 percent (11.6). The full-year adjusted EBITC margin improved to 11.2 percent (8.6), the highest level in five years. Profitability improved further in the fourth quarter, with adjusted EBIT margin increasing to 18.9 percent (16.3). The strong quarter was primarily driven by cost savings associated with the implementation of the new operating model.
 
Operating cash flow after continuous investments improved by SEK 336 M to SEK 1,392 M for the full year, representing the strongest cash flow in five years. The Board proposes a dividend of SEK 2.40 (2.40) per share, corresponding to a total of SEK 917 M, reflecting Elekta’s solid financial position.
 
Actions taken to improve quality of earnings
Through the execution of our first Must-Win Battle, we now have implemented a new operating model designed to simplify the organization, increase agility, and drive decision-making closer to the business. As part of these efforts, we have reduced the workforce by more than 500 employees, resulting in annualized cost savings exceeding SEK 500 M. A significant share of these savings was already realized during the fourth quarter, positively impacting profitability.
 
During the quarter, items affecting comparability of a total of SEK 1,363 M (1,040) were recognized, with no impact on cash flow. Following the implementation of a more focused and commercially driven product development roadmap, capitalized development costs amounting to SEK 851 M were impaired. As a result of impairments of goodwill related to discontinued products and other balance sheet-related items, a further IAC of SEK 519 million was recognized during the quarter. The adjustments reflect a reassessment to better align the balance sheet with current business assumptions and improves Elekta’s ability to execute on its future strategy.
 
Outlook
Looking at the fiscal year 2026/27, we expect net sales in constant currency to increase year over year, with an improvement in the EBIT margin. On our Capital Markets Day on June 17, we will present our mid-term financial targets ending at full year 2028/29.

Jakob Just-Bomholt
President and CEO