STOCKHOLM, July 15, 2025 /PRNewswire/ --
Strategic highlights -- solid strategic and operational execution
-- Operational excellence led to a 48% adjusted[1] gross margin and a
three-year high in adjusted[1] EBITA margin.
-- Solid strategic execution in Cloud Software and Services delivered strong
segment adjusted[1] EBITA.
-- Strong progress in IPR licensing; further opportunities to increase IPR
revenues remain.
Financial highlights -- improved contribution from all segments
-- Sales grew by 2%*, driven by market area Americas and IPR licensing,
partly offset by declines in other market areas, with investments in
India on hold. Reported sales were SEK 56.1 (59.8) b., with a SEK -4.7 b.
FX impact.
-- Adjusted[1] gross income increased to SEK 27.0 (26.3) b. driven by strong
operational execution and higher IPR licensing revenues, benefiting from
a settlement. Reported gross income was SEK 26.6 (25.8) b.
-- Adjusted[1] gross margin was 48.0% (43.9%) supported by improvements in
all segments, despite currency headwinds. Reported gross margin was 47.5%
(43.1%).
-- Adjusted[1] EBITA was SEK 7.4 (4.1) b. with a 13.2% (6.8%) margin,
benefiting from higher gross income and lower operating expenses.
Reported EBITA was SEK 6.8 (2.4) b. with a 12.0% (4.1%) margin.
-- Net income was SEK 4.6 (-11.0) b. EPS diluted was SEK 1.37 (-3.34). Net
income in 2024 was impacted by a SEK -11.4 b. impairment charge.
-- Free cash flow before M&A was SEK 2.6 (7.6) b. Q2 2024 benefited from
strong working capital release.
Börje Ekholm, President and CEO, said: "Our Q2 results demonstrate solid execution of our strategic and operational priorities. We achieved a three-year high in adjusted EBITA margin, supported by continued efficiency actions. We have structurally lowered our cost base and are strongly focused on delivering further efficiencies.
It is encouraging that Americas' growth continues, and that Europe has stabilized. Global fixed wireless access (FWA) customers have now surpassed 160 million and are driving significant network traffic. Penetration of 5G standalone is still limited but is needed to fully support AI use cases at the edge, requiring ultra-low latency and enhanced uplink performance.
Looking ahead, we are increasing AI investments, including in our Sweden AI factory consortium. AI is key to accelerating innovation, as well as driving internal operational efficiencies. The ecosystem for network APIs continues to grow, and Aduna expanded its Network API reach to all three major service providers in Japan."
Q2 Q2 YoY Q1 QoQ Jan-Jun Jan-Jun YoY
SEK b. 2025 2024 change 2025 change 2025 2024 change
Net sales 56.132 59.848 -6 % 55.025 2 % 111.157 113.173 -2 %
Organic
sales
growth
*([2]) - - 2 % - - - - 1 %
Gross income 26.649 25.815 3 % 26.537 0 % 53.186 48.473 10 %
Gross
margin([2]) 47.5 % 43.1 % - 48.2 % - 47.8 % 42.8 % -
EBIT (loss) 6.391 -13.519 - 5.931 8 % 12.322 -9.419 -
EBIT
margin([2]) 11.4 % -22.6 % - 10.8 % - 11.1 % -8.3 % -
EBITA([2]) 6.763 2.426 179 % 6.652 2 % 13.415 7.319 83 %
EBITA
margin([2]) 12.0 % 4.1 % - 12.1 % - 12.1 % 6.5 % -
Net income
(loss) 4.626 -10.999 - 4.217 10 % 8.843 -8.386 -
EPS diluted,
SEK 1.37 -3.34 - 1.24 10 % 2.61 -2.57 -
Free cash
flow before
M&A([2]) 2.581 7.595 -66 % 2.704 -5 % 5.285 11.266 -53 %
Net cash,
end of
period([2]) 36.040 13.133 174 % 38.647 -7 % 36.040 13.133 174 %
Adjusted financial measures([1][2])
Adjusted
gross
income 26.959 26.281 3 % 26.695 1 % 53.654 49.061 9 %
Adjusted
gross
margin 48.0 % 43.9 % - 48.5 % - 48.3 % 43.4 % -
Adjusted
EBIT
(loss) 7.047 -11.891 - 6.212 13 % 13.259 -7.586 -
Adjusted
EBIT
margin 12.6 % -19.9 % - 11.3 % - 11.9 % -6.7 % -
Adjusted
EBITA 7.419 4.054 83 % 6.933 7 % 14.352 9.152 57 %
Adjusted
EBITA
margin 13.2 % 6.8 % - 12.6 % - 12.9 % 8.1 % -
*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 https://www.ericsson.com/en/investors/financial-reports/interim-reports
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 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
Contact person
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
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.com
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 and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 AM CEST on July 15, 2025.
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SOURCE Ericsson
(END) Dow Jones Newswires
July 15, 2025 01:15 ET (05:15 GMT)