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Ericsson reports first quarter results 2025

1. Ericsson reports solid Q1 growth amid macro challenges. 2. Net sales increased to SEK 55.0 billion, reflecting 3% year-over-year growth. 3. Adjusted gross margin rose to 48.5%, signifying improved operational efficiency. 4. New partnerships and technology leadership strengthen competitive positioning in networks. 5. Resilience in enterprise sectors is expected despite volatile market conditions.

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FAQ

Why Bullish?

The strong growth in net sales and margins indicate improved operational performance, which positively impacts investor sentiment. Historical performance after similar reports often leads to stock price rises as market confidence grows.

How important is it?

The reported financial strength and strategic initiatives can significantly enhance market confidence, thus influencing ERIC's price.

Why Short Term?

The immediate results and strong guidance from management suggest potential short-term stock price appreciation, similar to past quarterly results.

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TMUSVZT
, /PRNewswire/ -- Strategic highlights – solid momentum in technology leadership and programmable networks   Extending technology leadership with expanded high-performing and energy-efficient product portfolio.   First high-performing programmable networks partnership for Asia Pacific with Telstra announced.   Announced network API fraud detection deployment by all three USA operators and further Aduna partnerships.   First quarter highlights – strong growth in gross income and margins  Organic sales were stable, with strong growth in market area Americas offset by declines in other market areas. Reported sales were SEK 55.0 (53.3) b.   Adjusted[1] gross income increased to SEK 26.7 (22.8) b. driven by sales growth and strong gross margin expansion. Reported gross income was SEK 26.5 (22.7) b.   Adjusted[1] gross margin was 48.5% (42.7%) supported by improvements in all segments with strong operational execution. Reported gross margin was 48.2% (42.5%).   Adjusted[1] EBITA was SEK 6.9 (5.1) b. with a 12.6% (9.6%) margin, benefiting from higher gross income. EBITA was SEK 6.7 (4.9) b. Q1 2024 included a one-time gain of SEK 1.9 b.    Net income was SEK 4.2 (2.6) b. EPS diluted was SEK 1.24 (0.77).   Free cash flow before M&A was SEK 2.7 (3.7) b.   Börje Ekholm, President and CEO, said: "We sustained solid momentum in Q1, despite a challenging and fast changing macro backdrop, and our results highlight our competitiveness. Our solid execution contributed to a strong 48.5% adjusted gross margin and 12.6% adjusted EBITA margin.   We extended our technology leadership position further and are on track to offer a portfolio of 130 radios this year that support programmable networks. In Q1, we announced the first Asia Pacific programmable network, including deployment of 5G Advanced, with Telstra.   Looking ahead, we remain confident of our strong position in Mobile Networks and expect Enterprise to stabilize during 2025. In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers. We are not immune, but we are resilient, with well diversified production close to the customer and the flexibility to adapt to changing conditions over time."  SEK b. Q1                                    2025 Q1                                    2024 YoY                                    change Q4                                    2024 QoQ                                    change Net sales 55.025 53.325 3 % 72.913 -25 %  Organic sales growth *[2]  - - 0 % - - Gross margin[2] 48.2 % 42.5 % - 44.9 % - EBIT  5.931 4.100 45 % 7.958 -25 % EBIT margin[2] 10.8 % 7.7 % - 10.9 % - EBITA[2] 6.652 4.893 36 % 8.623 -23 % EBITA margin[2] 12.1 % 9.2 % - 11.8 % - Net income  4.217 2.613 61 % 4.879 -14 % EPS diluted, SEK  1.24 0.77 61 % 1.44 -14 % Free cash flow before M&A[2] 2.704 3.671 -26 % 15.824 -83 % Net cash, end of period[2] 38.647 10.807 258 % 37.830 2 % Adjusted financial measures[1][2] Adjusted gross margin  48.5 % 42.7 % - 46.3 % - Adjusted EBIT  6.212 4.305 44 % 9.584 -35 % Adjusted EBIT margin  11.3 % 8.1 % - 13.1 % - Adjusted EBITA  6.933 5.098 36 % 10.25 -32 % Adjusted EBITA margin  12.6 % 9.6 % - 14.1 % - * Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.    [1] Adjusted metrics exclude restructuring charges. This is a change in nomenclature only, compared with previous reports.  [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 video webcast at 9:00 AM CEST (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] Additional contacts Stella Medlicott, Senior Vice President, Marketing and Corporate Relations Phone: +46 730 95 65 39 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 CEST on April 15, 2025.  This information was brought to you by Cision http://news.cision.com https://news.cision.com/ericsson/r/ericsson-reports-first-quarter-results-2025,c4136005 The following files are available for download: SOURCE Ericsson WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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