C-RAD shares fall 26.31% as third-quarter earnings and orders decline
Key Facts
Shares in Sweden's C-RAD fell 26.31% during trading on October 22, 2026, as the company reported lower third-quarter revenue, earnings and new orders. According to a Cboe Europe quote carried by MarketScreener, the shares traded at 21.15 Swedish kronor at 05:23:41 a.m. Eastern Daylight Time. The company reported revenue of 85.4 million kronor in its interim report, compared with 112.2 million kronor in the third quarter of the previous year. It attributed the decline mainly to lower product deliveries in Europe, the Middle East and Africa, as well as Asia-Pacific. Operating profit fell to 9.9 million kronor from 21.2 million kronor in the corresponding period. Net profit was 10.5 million kronor, compared with 12.9 million kronor. Cash flow from operations also declined to 9.4 million kronor from 24.4 million kronor a year earlier.
The decline extended to new orders, which totalled 75.9 million kronor in the third quarter, compared with 106.4 million kronor in the same period a year earlier, according to the interim report. That represented a year-on-year decline of 29%, or 31% at constant currencies. As for the order backlog, a U.S. customer cancelled a large order because of economic conditions, the company said. C-RAD also reviewed its order book, reducing the backlog by 93 million kronor following the cancellation and review. The reduction equated to 13%, and the company said it had no impact on earnings. Following the adjustment, the order backlog stood at 610.8 million kronor at the end of the quarter, compared with 716.6 million kronor at the end of the comparable quarter.
Services, meanwhile, generated revenue of 30 million kronor in the third quarter, according to the company's investor presentation. C-RAD described the figure as an "all-time quarterly high". The gross margin rose to 76% from 74% in the same period a year earlier. The company attributed the margin improvement to a higher contribution from services and the product mix. In explaining its operating profit performance, it said the impact of lower revenue was "partly offset by a higher gross margin and lower expenses". Record services revenue and the improved margin were thus among the factors that eased the pressure on operating profit from declining revenue.
The third-quarter revenue decline followed growth in the second quarter of 2026. In its previous report, C-RAD reported a 16% increase in revenue to 122 million kronor from 105 million kronor in the second quarter of the previous year. Management had warned at the time of fluctuations in quarterly results due to long sales cycles and large public tenders. It also cited differences in investment decisions between quarters and geographical variations as factors affecting quarterly performance. The company, whose shares are listed on Nasdaq Stockholm, develops surface-guided imaging solutions for radiotherapy that monitor patient movement during treatment. As part of its business development, it confirmed a partnership with C-Treat to develop more connected, intelligent and patient-focused radiotherapy workflows.
Alongside the results, C-RAD announced a programme on October 22, 2026, to buy back its Class B shares. The programme allows purchases of up to 600,000 shares for a total of up to 20 million Swedish kronor, according to the company's statement. Management intends to propose cancelling the shares purchased under the programme. The company said the purpose of the move was to optimise its capital structure. It also said it would make a recording of the results presentation available on its website after the presentation ended, allowing viewers to follow management's explanations and answers. It is scheduled to report full-year 2026 results on February 11, 2027.