Ericsson reports third quarter results 2025

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 atwww.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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The following files are available for download:

https://mb.cision.com/Main/15448/4249501/3720385.pdf

Ericsson Q3 2025 ENG

https://mb.cision.com/Public/15448/4249501/b4daaa7dd0442ddb.xlsx

Q3-25 tables

 

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SOURCE Ericsson