Ericsson Nikola Tesla (ERNT) Q4 2025 earnings summary

Executive summary

• Sales revenue for 2025 was EUR 238.6 million, down 4.4% year-over-year due to lower export and domestic demand, partially offset by growth in Services to Ericsson.

• Net profit rose 13.8% year-over-year to EUR 17.7 million, driven by lower tax expenses.

• Strategic focus remained on mobile networks, Digital Society, and Services for Ericsson, with continued investment in 5G and digital solutions.

• Major domestic and export projects included network modernization, 5G expansion, and digital transformation for public sector clients.

Financial highlights

• Gross margin increased to 11.9% (2024: 11.4%), with gross profit stable at EUR 28.3 million.

• Operating profit was EUR 20.9 million, down 5.6% year-over-year; operating margin stable at 8.8%.

• Profit before tax was EUR 21.5 million, down 7.5% year-over-year.

• Cash flow from operating activities improved to EUR 17.5 million (2024: EUR 10.3 million).

• Dividend proposal of EUR 13.52 per share.

Outlook and guidance

• Growth expected in the Digital Society segment, driven by EU border surveillance and digital transformation projects.

• New long-term ENT 2030 strategy in preparation to guide future growth and transformation.

• Continued focus on innovation, talent development, and strengthening market position.