Elekta offers asymmetric recovery potential as Elekta Evo adoption and more than SEK 500 M of savings could convert a temporarily weak top line into substantial margin-led value creation.
Overview
Elekta is a Swedish medical-technology company founded in 1972 that supplies radiation-oncology and neurosurgery hardware, software and services. Its model combines cyclical Solutions, approximately 60% of sales, with recurring Services at roughly 40%, creating resilience through maintenance, training, remote support and upgrades. The company holds specialist strengths in Gamma Knife radiosurgery, the 1.5T Unity MR-Linac and open-architecture oncology software, although Siemens-Varian remains stronger in the broader linear-accelerator market. Q1 FY2026/27 revenue fell 3% reported to SEK 3,536 M and missed consensus by 2.6%, but **adjusted gross margin expanded 560 basis points to 42.6%** and adjusted EBIT rose 68% to SEK 395 M, or an 11.2% margin. Book-to-bill improved to 1.11 from 1.05, helped by Elekta Evo orders. Management reiterated FY2026/27 guidance of 2%–4% constant-currency sales growth and a 12.5%–13.5% adjusted EBIT margin, with more than SEK 500 M of annualized savings supporting a 14%–16% mid-term margin target. At **SEK 49.02**, the stock is below Morningstar’s SEK 108.00 fair value and the model’s probability-weighted five-year target of SEK 90.20. Near-term catalysts are Evo adoption, China/APJ normalization and backlog conversion.