Elekta AB detailed its future growth prospects and the results of a proactive order review at its Investor Update in Stockholm, the company said Tuesday.
The Swedish medical technology company is aiming to restore its gross margin to pre-pandemic levels and achieve an earnings before interest and taxes (EBIT) margin of at least 14% in the medium term, according to a company statement.
As part of efforts to improve profitability and predictability, Elekta conducted an order review resulting in a cancellation valued at 4.9 billion Swedish Kronor, which includes orders to be cancelled after its 2024/25 fiscal year, the company said.
This review, combined with 1.7 billion Swedish Kronor in positive net effects from sales and new orders and a negative foreign exchange impact of 4.3 billion Swedish Kronor, led to a revised order backlog of 36.9 billion Swedish Kronor, the company stated.
Elekta also highlighted the strong market reception for its latest linear accelerator, Evo, in Europe and the Asia-Pacific region, and discussed its competitive positioning in North America.
Company executives presented technological advancements in its linac portfolio, including Elekta Unity MR-Linac and Elekta Evo, emphasizing the growing importance of adaptive radiation therapy in improving clinical outcomes.
Positive technical and commercial momentum in its Brachy and Neuro Solutions business lines was also noted for its strategic contribution to Elekta’s overall performance, according to the company.
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