Ericsson Grows Profit, Expands 5G Footprint in First Quarter 2025

Ericsson has released its financial results for the first quarter of 2025, providing insights into the company’s performance and market position.

Strategic highlights – solid momentum in technology leadership and programmable networks

• Extending technology leadership with expanded high-performing and energy-efficient product portfolio.
• First high-performing programmable networks partnership for Asia Pacific with Telstra announced.
• Announced network API fraud detection deployment by all three USA operators and further Aduna partnerships.

First quarter highlights – strong growth in gross income and margins

• Organic sales were stable, with strong growth in market area Americas offset by declines in other market areas. Reported sales were SEK 55.0 (53.3) b.
• Adjusted[1] gross income increased to SEK 26.7 (22.8) b. driven by sales growth and strong gross margin expansion. Reported gross income was SEK 26.5 (22.7) b.
• Adjusted[1] gross margin was 48.5% (42.7%) supported by improvements in all segments with strong operational execution. Reported gross margin was 48.2% (42.5%).
• Adjusted[1] EBITA was SEK 6.9 (5.1) b. with a 12.6% (9.6%) margin, benefiting from higher gross income. EBITA was SEK 6.7 (4.9) b. Q1 2024 included a one-time gain of SEK 1.9 b.
• Net income was SEK 4.2 (2.6) b. EPS diluted was SEK 1.24 (0.77).
• Free cash flow before M&A was SEK 2.7 (3.7) b.

We sustained solid momentum in Q1, despite a challenging and fast changing macro backdrop, and our results highlight our competitiveness. Our solid execution contributed to a strong 48.5% adjusted gross margin and 12.6% adjusted EBITA margin.

We extended our technology leadership position further and are on track to offer a portfolio of 130 radios this year that support programmable networks. In Q1, we announced the first Asia Pacific programmable network, including deployment of 5G Advanced, with Telstra.

Looking ahead, we remain confident of our strong position in Mobile Networks and expect Enterprise to stabilize during 2025. In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers. We are not immune, but we are resilient, with well diversified production close to the customer and the flexibility to adapt to changing conditions over time.

– Börje Ekholm, President and CEO, Ericsson