Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- C-Rad AB (FRA:24C, Financial) reported a solid order intake of SEK97 million, marking a 5% growth compared to Q1 last year.
- The company achieved a revenue increase of 1% to SEK119 million, driven by strong deliveries in America and APAC.
- Order intake for services grew by 58% compared to Q1 last year, highlighting the company's focus on growing recurring revenue.
- C-Rad AB (FRA:24C) maintained a solid underlying EBIT margin of 18%, excluding unrealized currency effects, due to cost efficiency measures.
- The company has a strong balance sheet with no long-term debt, and cash balances increased by SEK10 million during the quarter.
Negative Points
- Order intake for the Americas decreased by 21% to SEK19 million in Q1, affected by market uncertainty and tariffs.
- Revenue in EMEA was down 39% to SEK36 million, impacted by lower order intake from the previous year.
- The EBIT for the first quarter was SEK10 million, down from SEK14.2 million a year ago, affected by unrealized exchange rate losses.
- The overall US market is experiencing slowness in decision-making due to tariff-related uncertainties.
- Despite the revenue growth, the gross margin was slightly offset by sales of lower-margin products.
Q & A Highlights
Q: Can you provide an overview of C-Rad AB's performance in Q1 2025?
A: Cecilia de Leeuw, President and CEO, highlighted a solid quarter despite a "wait and see" market. The company achieved a 5% growth in order intake to SEK97 million, with significant contributions from EMEA and APAC regions. Revenue increased by 1% to SEK119 million, driven by strong deliveries in America and APAC. The EBIT margin, excluding unrealized currency effects, was 18%.
Q: How did C-Rad AB perform in different regions during Q1 2025?
A: In the Americas, order intake decreased by 21% to SEK19 million due to market uncertainty, but revenue grew by 35% due to strong backlog conversion. EMEA saw a 15% increase in order intake to SEK38 million, though revenue was down 39% to SEK36 million. APAC experienced a 41% revenue growth to SEK50 million, supported by SGRT adoption and installations.
Q: What were the key financial highlights for C-Rad AB in Q1 2025?
A: Linda Frolen, CFO, reported a gross profit of SEK78 million, up from SEK76.6 million the previous year, with a gross margin of 66%. Operating expenses decreased to SEK56.1 million from SEK64 million, and EBIT was SEK10 million, affected by unrealized exchange rate losses. Cash balances increased by SEK10 million to SEK161 million, driven by an operating cash flow of SEK26 million.
Q: What are C-Rad AB's medium-term financial targets?
A: Cecilia de Leeuw stated that the company aims for an average organic growth exceeding 10%, an operating margin of 25%, and at least 30% of net profit returned to shareholders. These targets are considered ambitious yet reachable, supported by the company's improved profitability and resilience.
Q: What strategic priorities does C-Rad AB have for future growth?
A: The company plans to penetrate untapped markets, retrofit existing linear accelerators or proton machines, and grow its services. C-Rad AB aims to innovate its competitive portfolio and build long-term partnerships with reference clinics, leveraging happy customers as sales references.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
