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."
Q3 Q3 YoY Q2 QoQ Jan-Sep Jan-Sep YoY
SEK b. 2025 2024 change 2025 change 2025 2024 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: investor.relations@ericsson.com
Additional contacts
Stella Medlicott, Senior Vice President, Marketing and Corporate Relations
Phone: +46 730 95 65 39
E-mail: media.relations@ericsson.com
Investors
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com
Alan Ganson, Director, Investor Relations
Phone: +46 70 267 27 30
E-mail: alan.ganson@ericsson.co
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com
Media relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
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.
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/ericsson/r/ericsson-reports-third-quarter-results-2025,c4249501
The following files are available for download:
https://mb.cision.com/Main/15448/4249501/3720385.pdf Ericsson Q3 2025 ENG https://mb.cision.com/Public/15448/4249501/b4daaa7dd0442 Q3-25 tables ddb.xlsx
View original content:https://www.prnewswire.com/news-releases/ericsson-reports-third-quarter-results-2025-302582976.html
SOURCE Ericsson
(END) Dow Jones Newswires
October 14, 2025 01:56 ET (05:56 GMT)