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Ericsson (ERIC) investor relations material
Ericsson Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved strong Q4 and full-year results with disciplined execution, 6% organic sales growth in Q4, and progress on strategic priorities, including cost initiatives and a headcount reduction of 5,000 over the year.
Adjusted gross margin reached 48% in Q4 and 48.1% for the year, with adjusted EBITA margin at 18.3% in Q4 and 18.1% for the year, nearing long-term targets.
Net income for the year was SEK 28.7 billion, up from SEK 0.4 billion, with diluted EPS at SEK 8.51.
Net cash position exceeded SEK 61 billion, supporting increased shareholder distributions and a proposed record SEK 25 billion return via dividends and buybacks.
Strategic focus on technology leadership, Mission Critical networks, enterprise growth, and investments in AI, 5G Core, and defense applications.
Financial highlights
Q4 net sales: SEK 69.3 billion; organic sales up 6% year-on-year, with growth in all segments.
Q4 adjusted gross margin: 48.0% (up from 46.3%); adjusted EBITA margin: 18.3% (up from 14.1%).
Full-year net sales: SEK 236.7 billion; organic sales up 2%, reported sales down 5% due to currency and divestments.
Full-year adjusted EBITA: SEK 42.9 billion (18.1% margin), up 58% year-on-year; net income: SEK 28.7 billion.
Free cash flow before M&A: SEK 26.8 billion for the year; net cash at year-end: SEK 61.2 billion.
Outlook and guidance
Q1 2026 Networks sales expected to follow three-year average seasonality; Cloud Software and Services Q1 sales growth to be below average.
Networks' adjusted gross margin for Q1 guided at 49%-51%.
Elevated restructuring charges expected in 2026 due to announced headcount reductions.
RAN market expected to be flat in 2026, with growth anticipated from Mission Critical and Enterprise.
Increased investments in defense and continued cost optimization planned for 2026.
- TimeTickerHeadlineOpen
- DNLM
Sales and digital growth, margin expansion, and strategic investments drive strong FY25 results. - DNLM
Sales up 3.8% to £1,771m, profit before tax £211m, digital sales 40%, market share 7.9%. - 9412
Profits and equity improved, with upward revisions to full-year forecasts and new subsidiaries added. - NVDA
AI is transforming enterprises by enabling intent-driven innovation and technology-first strategies. - DNLM
H1 sales up 3.6% to £926m; digital mix 41%; PBT to hit lower end of consensus. - CRW
Double-digit growth, strong cash flow, and new leadership drive confidence for FY25. - 7011
Strong revenue and profit growth in FY2025, with raised guidance and key divestiture impact. - 8053
Profit attributable to owners dipped 1.9% despite higher revenues and strong FX gains. - 323410
Strong growth in customers, profits, and deposits, with stable asset quality and global milestones. - 3407
Net income rose 22.7% year-over-year, with improved financials and a revised upward forecast.
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