Ericsson reports third quarter results 2025

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Oct 14, 2025, 02:01 ET

STOCKHOLM, Oct. 14, 2025 /PRNewswire/ --

Strategic highlights – operational excellence and enhanced financial flexibility

Strong commercial momentum with significant customer agreements including in India, Japan and the UK.
Operational excellence and cost efficiency actions driving gross margins to strong sustainable levels.
5G Open RAN-ready portfolio breadth and technology leadership position reaffirmed by Gartner and Omdia.

Financial highlights – further profitability growth

Organic sales declined by -2%, with growth in three out of four market areas. Reported sales were SEK 56.2 (61.8) b., with an FX impact of SEK -4.2 b.
Adjusted[1] gross income decreased to SEK 27.0 (28.6) b. as currency headwinds offset strong operational execution. Reported gross income was SEK 26.8 (28.2) b.
Adjusted[1] gross margin was 48.1% (46.3%) driven by improvements in Networks and Cloud Software and Services. Reported gross margin was 47.6% (45.6%).
Adjusted[1] EBITA was SEK 15.8 (7.8) b. with a 28.1% (12.6%) margin, including a SEK 7.6 b. capital gain benefit from the divestment of iconectiv. Reported EBITA was SEK 15.5 (6.2) b. with a 27.6% (10.0%) margin.
Net income was SEK 11.3 (3.9) b. including a benefit from the capital gain. EPS diluted was SEK 3.33 (1.14).
Free cash flow before M&A was SEK 6.6 (12.9) b. Net cash increased to SEK 51.9 b.

Börje Ekholm, President and CEO, said: "In Q3, we established margins at a new long-term level following strong operational execution over the past few years. Cloud Software and Services sales grew 9%*, driven by strong growth in core networks.

Our solid progress on technology initiatives continues. Gartner and Omdia reconfirmed our 5G solutions are industry leading. Our Open RAN-ready portfolio includes an AI native, future proof software architecture which is hardware agnostic. The portfolio integrates with third-party radios and supports Ericsson silicon and third-party CPU/GPUs.

Looking ahead, we expect Enterprise organic sales to stabilize in Q4 and the RAN market to remain broadly stable. Solid recurring cash flow and the iconectiv sale contributed to a strong Q3 cash position, offering scope for increased shareholder distributions. The Board's recommendation on the scale and mechanism for the distribution will be included in the Q4 report for decision at the AGM."

SEK b.	Q3 2025	Q3 2024	YoY change	Q2 2025	QoQ change	Jan-Sep 2025	Jan-Sep 2024	YoY change
Net sales	56.239	61.794	-9 %	56.132	0 %	167.396	174.967	-4 %
Organic sales growth [2]*	-	-	-2 %	-	-	-	-	0 %
Gross income	26.777	28.185	-5 %	26.649	0 %	79.963	76.658	4 %
Gross margin [2]	47.6 %	45.6 %	-	47.5 %	-	47.8 %	43.8 %	-
EBIT (loss)	15.151	5.774	162 %	6.391	137 %	27.473	-3.6	-
EBIT margin [2]	26.9 %	9.3 %	-	11.4 %	-	16.4 %	-2.1 %	-
EBITA [2]	15.516	6.203	150 %	6.763	129 %	28.931	13.522	114 %
EBITA margin [2]	27.6 %	10.0 %	-	12.0 %	-	17.3 %	7.7 %	-
Net income (loss)	11.300	3.881	191 %	4.626	144 %	20.143	-4.505	-
EPS diluted, SEK	3.33	1.14	192 %	1.37	143 %	5.94	-1.43	-
Free cash flow before M&A [2]	6.631	12.944	-49 %	2.581	157 %	11.916	24.210	-51 %
Net cash, end of period [2]	51.858	25.534	103 %	36.040	44 %	51.858	25.534	103 %
Adjusted financial measures [1][2]
Adjusted gross income	27.048	28.609	-5 %	26.959	0 %	80.702	77.670	4 %
Adjusted gross margin	48.1 %	46.3 %	-	48.0 %	-	48.2 %	44.4 %	-
Adjusted EBIT (loss)	15.454	7.327	111 %	7.047	119 %	28.713	-0.259	-
Adjusted EBIT margin	27.5 %	11.9 %	-	12.6 %	-	17.2 %	-0.1 %	-
Adjusted EBITA	15.819	7.756	104 %	7.419	113 %	30.171	16.908	78 %
Adjusted EBITA margin	28.1 %	12.6 %	-	13.2 %	-	18.0 %	9.7 %	-

* Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.

1] Adjusted metrics are adjusted to exclude restructuring charges.
[2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.

NOTES TO EDITORS

You find the complete report with tables in the attached PDF or on www.ericsson.com/investors

Video webcast for analysts, investors and journalists

President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a live video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York).

Join the webcast or please go to www.ericsson.com/investors

To ask a question: Access dial-in information here

The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors.

FOR FURTHER INFORMATION, PLEASE CONTACT
Daniel Morris, Head of Investor Relations
Phone: +44 7386657217
E-mail: [email protected]

Additional contacts
Stella Medlicott, Senior Vice President, Marketing and Corporate Relations
Phone: +46 730 95 65 39
E-mail: [email protected]

Investors
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail:  [email protected]

Alan Ganson, Director, Investor Relations
Phone: +46 70 267 27 30
E-mail: [email protected]

Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: [email protected]

Media relations
Phone: +46 10 719 69 92
E-mail: [email protected]

This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on October 14, 2025.

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