Elekta reported a near-total collapse in quarterly net income on Wednesday, with net profit falling to SEK12 million from SEK336 million a year earlier. The Swedish radiotherapy equipment maker faced severe headwinds from currency fluctuations and restructuring costs that overwhelmed operational gains.

A strengthening Swedish krona erased SEK548 million from revenue while a SEK417 million restructuring charge hit the bottom line. Currency and tariffs combined to destroy 230 basis points of gross margin, with 130 basis points from foreign exchange and 100 from tariffs. Despite these challenges, adjusted gross margin improved to 38.3% from 37.1%, driven by new product launches and pricing gains.

Order intake showed resilience, with the book-to-bill ratio at 1.17 against 1.15 a year earlier. China returned to order growth for the first time since late 2023, though U.S. volumes fell ahead of FDA clearance for its Evo CT-Linac system. Jefferies maintained a "hold" rating with a SEK55 price target, citing tariff exposure, currency headwinds and a new chief executive as key concerns for the medical technology company.