VOL. XCIV, NO. 247

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Monday, December 29, 2025

Elekta AB (publ)

EKTA B · NASDAQ Stockholm

Market cap (USD)$2.3B
SectorHealthcare
CountrySE
Data as of
Moat score
70/ 100

Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.

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Overview

Elekta AB (publ) is a Swedish medical-technology company focused on radiotherapy systems and oncology software, with revenue mainly split between Solutions (capital equipment and software) and Service (lifecycle support). Solutions operates in a highly specialized and concentrated market where significant R&D investment and regulatory scrutiny create meaningful barriers to entry. Service monetizes a large installed base through attached service contracts, upgrades, and software/license support, creating recurring revenue and customer switching friction. Key risks include pricing pressure from public tenders, technological leapfrogging by larger competitors, and increased interoperability that can weaken software/workflow lock-in.

Primary segment

Solutions

Market structure

Oligopoly

Market share

40%-44% (reported)

HHI:

Coverage

2 segments · 5 tags

Updated 2025-12-28

Segments

Solutions

Radiotherapy treatment delivery systems and oncology software solutions (linacs, MR-Linacs, stereotactic radiosurgery, treatment planning & oncology information systems)

Revenue

56.8%

Structure

Oligopoly

Pricing

moderate

Share

40%-44% (reported)

Peers

SHL.DEARAY6501.T

Service

Maintenance, service contracts, upgrades, and software/license support for Elekta-installed radiotherapy systems

Revenue

43.2%

Structure

Quasi-Monopoly

Pricing

moderate

Share

Peers

SHL.DEARAY

Moat Claims

Solutions

Radiotherapy treatment delivery systems and oncology software solutions (linacs, MR-Linacs, stereotactic radiosurgery, treatment planning & oncology information systems)

Revenue share computed from FY2024/25 net sales by product type: Solutions SEK 10,232M of total SEK 18,016M. Market described by management as 'largely a duopoly in radiotherapy' (Investor Update 2025).

Oligopoly

Capex Knowhow Scale

Supply

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence

Radiotherapy equipment is a highly specialized category with few global competitors; sustained R&D and engineering know-how create a high barrier to entry.

Erosion risks

  • Technological leapfrogging by large competitors
  • Hospital capex deferrals and pricing pressure in tenders
  • Component shortages or manufacturing disruptions

Leading indicators

  • Order intake growth (Solutions)
  • New platform launch cadence (linacs/MR-Linacs)
  • Solutions gross margin trend

Counterarguments

  • Large peers can match or exceed R&D and manufacturing scale
  • Differentiation can be episodic as features diffuse across vendors

Compliance Advantage

Legal

Strength: 3/5 · Durability: durable · Confidence: 3/5 · 1 evidence

Deep regulatory expertise and clinical validation requirements favor incumbents in radiotherapy devices and software.

Erosion risks

  • Regulatory changes reducing complexity or increasing standardization
  • Quality events/recalls damaging credibility with regulators and customers

Leading indicators

  • Regulatory approvals/clearances (FDA/CE) for new systems and software
  • Product quality metrics (field actions, recalls)

Counterarguments

  • Regulatory capability is learnable and well-funded entrants can hire experienced teams
  • Regulation can also slow incumbent iteration and raise costs

Procurement Inertia

Demand

Strength: 3/5 · Durability: medium · Confidence: 4/5 · 2 evidence

A meaningful share of sales goes through public tendering; long evaluation cycles and reference-based purchasing can favor established vendors.

Erosion risks

  • Centralized purchasing emphasizing lowest price over total value
  • Policy shifts increasing competition and reducing incumbency advantage

Leading indicators

  • Tender win rate and backlog conversion
  • Regional order intake volatility (EMEA/APAC/US)

Counterarguments

  • Tendering can commoditize bids, shifting selection to price/spec checklists
  • References do not prevent displacement when competitors bundle financing or underbid

Data Workflow Lockin

Demand

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence

Elekta's software suite (planning + oncology information) can become embedded in clinic workflows; SaaS migration can increase recurring revenue and integration stickiness.

Erosion risks

  • Interoperability standards and vendor-neutral platforms reducing switching friction
  • Customer preference for best-of-breed point solutions
  • Security/regulatory constraints slowing cloud adoption in healthcare

Leading indicators

  • SaaS share of oncology information system orders
  • Software order growth
  • Renewal/retention disclosures for software subscriptions

Counterarguments

  • Hospitals can multi-home software; integration via standards can reduce lock-in
  • Large vendors can bundle software with hardware to displace incumbents

Service

Maintenance, service contracts, upgrades, and software/license support for Elekta-installed radiotherapy systems

Revenue share computed from FY2024/25 net sales by product type: Service SEK 7,784M of total SEK 18,016M.

Quasi-Monopoly

Installed Base Consumables

Demand

Strength: 4/5 · Durability: durable · Confidence: 4/5 · 2 evidence

Recurring service contracts and lifecycle revenue (maintenance, upgrades, licenses) are driven by a large installed base and service contract attachment.

Erosion risks

  • Independent service organizations expanding capabilities
  • Renewal price pressure and customer insourcing
  • Remote/AI diagnostics lowering differentiation in service delivery

Leading indicators

  • Service revenue growth rate
  • Service gross margin and attach rate (if disclosed)
  • Installed base size and upgrade penetration

Counterarguments

  • Some customers can use third-party maintenance for older equipment
  • Service margins can compress as contracts rebid or standardized

Service Field Network

Supply

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 2 evidence

Global coverage (local offices + distributor network) and field/remote service capabilities support uptime for mission-critical systems.

Erosion risks

  • Remote service tools commoditizing support
  • Field talent shortages increasing costs and response times

Leading indicators

  • Service response times and uptime commitments (if disclosed)
  • Renewal rates for service contracts
  • Customer satisfaction metrics (NPS) if reported

Counterarguments

  • Third-party service providers can replicate coverage in mature markets
  • Remote support reduces the importance of physical network density

Switching Costs General

Demand

Strength: 3/5 · Durability: medium · Confidence: 3/5 · 1 evidence

For customers, switching service provider (or migrating away from a platform) can increase downtime risk and require retraining/recertification, creating friction to change.

Erosion risks

  • Vendor-neutral certification and cross-training reducing switching friction
  • More modular equipment/software architectures

Leading indicators

  • Share of service delivered remotely vs on-site
  • Customer mix shift toward multi-vendor service arrangements

Counterarguments

  • Large hospital systems can standardize across vendors and renegotiate service aggressively
  • Third-party providers can offer lower-cost options, especially for older systems

Evidence

other
Elekta Annual Report 2024/25 - Market overview

The competitive landscape in radiotherapy is characterized by a limited number of global companies competing in this highly specialized field.

Supports concentrated market structure and high specialization/entry barriers.

investor_day
Elekta Investor Update 2025 - Financial Update (industry characteristics)

Barriers to entrance are high - significant R&D and high regulatory scrutiny.

Management explicitly frames the category as high-barrier due to R&D intensity and regulation.

other
Elekta Annual Report 2024/25 - Market overview

Elekta has established technology leadership through... extensive regulatory expertise...

Company highlights regulatory expertise as a contributor to technology leadership.

other
Elekta Annual Report 2021/22 - Business ethics (public tenders)

Most of our sales will go through a public tender process...

Indicates procurement/tender dynamics are material to sales execution.

news
Elekta press release: wins majority of Italian public tender for linacs

...selected to deliver 37... linacs... This corresponds to 60 percent of the linac tender.

Concrete example of winning a major public tender in the category.

Showing 5 of 13 sources.

Risks & Indicators

Erosion risks

  • Technological leapfrogging by large competitors
  • Hospital capex deferrals and pricing pressure in tenders
  • Component shortages or manufacturing disruptions
  • Regulatory changes reducing complexity or increasing standardization
  • Quality events/recalls damaging credibility with regulators and customers
  • Centralized purchasing emphasizing lowest price over total value

Leading indicators

  • Order intake growth (Solutions)
  • New platform launch cadence (linacs/MR-Linacs)
  • Solutions gross margin trend
  • Regulatory approvals/clearances (FDA/CE) for new systems and software
  • Product quality metrics (field actions, recalls)
  • Tender win rate and backlog conversion
Created 2025-12-28
Updated 2025-12-28

Curation & Accuracy

This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).

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