Ericsson Nikola Tesla (ERNT) Q2 2025 earnings summary

Executive summary

• Sales revenue reached EUR 110.8 million in H1 2025, up 1.7% year-over-year, driven by growth in Croatia and stable Ericsson services.

• Net profit increased 24.8% year-over-year to EUR 9.6 million, mainly due to lower income tax.

• Operating profit declined 13.2% year-over-year to EUR 11.4 million, impacted by higher costs.

• Focus remains on business diversification, digital transformation, and cost efficiency amid market challenges.

• Major contracts signed in Digital Society and public safety segments, with continued R&D investment in 5G and AI.

Financial highlights

• Gross profit was EUR 13.9 million, down 12.0% year-over-year; gross margin fell to 12.5% from 14.5%.

• Operating margin decreased to 10.3% from 12.0% year-over-year.

• Cash flow from operating activities improved to EUR 0.9 million from EUR -5.1 million in H1 2024.

• Cash and cash equivalents stood at EUR 56.6 million (32.5% of total assets) as of June 30, 2025.

• Equity ratio was 36.7% at period end, down from 37.9% at end-2024.

Outlook and guidance

• Strategy centers on strengthening mobile networks, expanding Digital Society, and R&D excellence.

• Investments planned in new products, AI, cybersecurity, and digital transformation to drive innovation and efficiency.