StockNews.AI
ERIC
StockNews.AI
35 days

Ericsson reports second quarter results 2025

1. ERIC achieved a 48% adjusted gross margin, a three-year high. 2. Sales grew 2%, driven by Americas and IPR licensing. 3. Adjusted EBITA margin reached 13.2%, significantly improved from last year. 4. Continued investments in AI to enhance strategic execution and streamline operations. 5. Global FWA customers surpassed 160 million, boosting network traffic.

Earnings
-7.91%Current Return
VS
-0.43%S&P 500
$7.8407/15 01:21 AM EDTEvent Start
$7.2207/16 07:39 AM EDTLatest Updated
10m saved
Insight
Article

FAQ

Why Bullish?

With strong profitability metrics and growing revenues, ERIC shows resilience. Historical trends indicate that sustained growth in cloud services and licensing leads to positive stock performance.

How important is it?

Financial improvements and strategic AI investments position ERIC strongly in the market. Future profitability potential from IPR licensing and cloud services enhances certainty for investors.

Why Short Term?

Recent financial results and strategic intent suggest immediate investor confidence, likely influencing stock performance soon. Past quarterly results have shown quick shifts in investor sentiment.

Related Companies

NOKAAPLMSFT
, /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." SEK b. Q2 2025 Q22024 YoY  change Q12025 QoQchange Jan-Jun2025 Jan-Jun2024 YoYchange 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: [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 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.  This information was brought to you by Cision http://news.cision.com https://news.cision.com/ericsson/r/ericsson-reports-second-quarter-results-2025,c4207096 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

Related News