Ericsson reports fourth quarter results and full-year results 2025 USA - English USA - English APAC - English

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

Strategic highlights – solid commercial momentum and operational execution

Fourth quarter highlights – good organic growth with all segments contributing

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

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 1 2

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 %

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 2 3

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 %

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: +44 7386657217

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 CET on January 23, 2026.

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