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: 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.
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Ericsson Q3 2025 ENG
https://mb.cision.com/Public/15448/4249501/b4daaa7dd0442ddb.xlsx
Q3-25 tables