Ericsson reports third quarter results 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 QoQchange Jan-Sep2025 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: [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 October 14, 2025. This information was brought to you by Cision http://news.cision.com https://news.cision.com/ericsson/r/ericsson-reports-third-quarter-results-2025,c4249501 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

Ericsson reports third quarter results 2025

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