Ericsson reports fourth quarter results and full-year results 2025

STOCKHOLM, Jan. 23, 2026 /PRNewswire/ --

Strategic highlights - solid commercial momentum and operational execution

• Organic sales growth in all three segments in Q4, with 12%* growth in segment Cloud Software and Services.
• Operational improvements in recent years driving strong margins and solid free cash flow.

Fourth quarter highlights - good organic growth with all segments contributing

• Sales increased by 6%* YoY. Market areas Europe, Middle East and Africa and South East Asia, Oceania and India grew, Americas was broadly stable while North East Asia declined. Reported sales were SEK 69.3 (72.9) b.
• Adjusted¹ gross income was SEK 33.2 (33.7) b. with currency headwinds offsetting strong operational execution. Reported gross income was SEK 32.7 (32.7) b.
• Adjusted¹ gross margin was 48.0% (46.3%) driven mainly by improvements in Cloud Software and Services. Reported gross margin was 47.2% (44.9%).
• Adjusted¹ EBITA was SEK 12.7 (10.2) b. with an 18.3% (14.1%) margin, benefiting from improved segment margins in Mobile Networks. Reported EBITA was SEK 11.6 (8.6) b. with a 16.7% (11.8%) margin.
• Net income was SEK 8.6 (4.9) b. EPS diluted was SEK 2.57 (1.44).
• Free cash flow before M&A was SEK 14.9 (15.8) b.

Full-year highlights - margins stabilized at good levels and solid free cash flow

• Sales increased by 2%*, with growth in Networks and Cloud Software and Services. Reported sales were SEK 236.7 (247.9) b.
• Adjusted¹ gross income increased to SEK 113.9 (111.4) b. driven by improvements in Mobile Networks, and despite a SEK -7.2 b. currency headwind. Adjusted gross margin increased to 48.1% (44.9%).
• Adjusted¹ EBITA was SEK 42.9 (27.2) b. with an adjusted¹ EBITA margin of 18.1% (11.0%), including the gain from the divestment of iconectiv.
• Net income was SEK 28.7 (0.4) b. EPS diluted was SEK 8.51 (0.01).
• Free cash flow before M&A was SEK 26.8 (40.0) b., delivering a cash flow to net sales of 11.3%.
• Net cash at year-end 2025 was SEK 61.2 (37.8) b.
• Return on capital employed was 24.1% (2.6%), including the benefit of the iconectiv divestment.
• A dividend of SEK 3.00 (2.85) per share for 2025 and a share buyback program of SEK 15.0 b. will be proposed to the AGM by the Board of Directors.

Börje Ekholm, President and CEO, said: "Our Q4 results demonstrate solid execution of our strategy priorities. It is encouraging that we delivered organic growth in a flattish RAN market environment through our efforts in mission critical networks, 5G core and Enterprise. The operational actions we have taken in recent years have resulted in improved margins and cash flow, with a ninth consecutive quarter of year-over-year adjusted EBITA margin expansion.

R&D investments to extend technology leadership continued, with a focus on AI-native, secure, and autonomous mobile networks. We generated strong free cash flow and have a strong cash position today. The Board will propose an increased dividend of SEK 3.00 per share, and will also seek a mandate for a share buyback of SEK 15 b.

For 2026, we expect the RAN market to be flat. Mission critical and enterprise markets, where we are well positioned, are expected to grow. In this environment, we plan to increase investments in defense during 2026 while continuing to optimize our cost base to support margins and cash flow generation."

* Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.
¹ Adjusted metrics exclude restructuring charges.

SEK b.	Q4 2025	Q4 2024	YoY change	Q3 2025	QoQ change	Jan-Dec 2025	Jan-Dec 2024	YoY change
Net sales	69.285	72.913	-5 %	56.239	23 %	236.681	247.880	-5 %
Organic sales growth 12	-	-	6 %	-	-	-	-	2 %
Gross income	32.705	32.707	0 %	26.777	22 %	112.668	109.365	3 %
Gross margin 2	47.2 %	44.9 %	-	47.6 %	-	47.6 %	44.1 %	-
EBIT	11.161	7.958	40 %	15.151	-26 %	38.634	4.3	-
EBIT margin 2	16.1 %	10.9 %	-	26.9 %	-	16.3 %	1.7 %	-
EBITA 2	11.601	8.623	35 %	15.516	-25 %	40.532	22.145	83 %
EBITA margin 2	16.7 %	11.8 %	-	27.6 %	-	17.1 %	8.9 %	-
Net income	8.571	4.879	76 %	11.300	-24 %	28.714	0.374	-
EPS diluted, SEK	2.57	1.44	78 %	3.33	-23 %	8.51	0.01	-
Free cash flow before M&A 2	14.853	15.824	-6 %	6.631	124 %	26.769	40.034	-33 %
Net cash, end of period 2	61.236	37.830	62 %	51.858	18 %	61.236	37.830	62 %
Adjusted financial measures 23
Adjusted gross income	33.243	33.741	-1 %	27.048	23 %	113.945	111.411	2 %
Adjusted gross margin	48.0 %	46.3 %	-	48.1 %	-	48.1 %	44.9 %	-
Adjusted EBIT	12.258	9.584	28 %	15.454	-21 %	40.971	9.325	-
Adjusted EBIT margin	17.7 %	13.1 %	-	27.5 %	-	17.3 %	3.8 %	-
Adjusted EBITA	12.698	10.249	24 %	15.819	-20 %	42.869	27.157	58 %
Adjusted EBITA margin	18.3 %	14.1 %	-	28.1 %	-	18.1 %	11.0 %	-

¹ Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.
² Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.
³ Adjusted metrics exclude restructuring charges

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 CET (8:00 AM GMT London, 3:00 AM EST 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

Contact person
Daniel Morris, Head of Investor Relations
Phone: [phone]
E-mail: [e-mail]

Investors
Lena Häggblom, Director, Investor Relations
Phone: [phone]
E-mail: [e-mail]

Alan Ganson, Director, Investor Relations
Phone: [phone]
E-mail: [e-mail]

Media
Ralf Bagner, Head of Media Relations
Phone: [phone]
E-mail: [e-mail]

Media relations
Phone: [phone]
E-mail: [e-mail]

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 CET on January 23, 2026.

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/ericsson/r/ericsson-reports-fourth-quarter-results-and-full-year-results-2025,c4296598

The following files are available for download:

https://mb.cision.com/Main/15448/4296598/3893323.pdf	Ericsson reports fourth quarter results and full-year results 2025
https://mb.cision.com/Public/15448/4296598/b6c360d6c37a6178.xlsx	Q4-25 tables

View original content:https://www.prnewswire.co.uk/news-releases/ericsson-reports-fourth-quarter-results-and-full-year-results-2025-302668810.html