Note: This section contains information in English only.Ericsson reported strong commercial momentum and solid execution, delivering organic sales growth across all three business segments in the fourth quarter. Despite currency headwinds and a tough market environment, the company achieved its ninth consecutive quarter of year-over-year improvement in adjusted EBITA margins, showing consistent profitability progress.
In the fourth quarter of 2025, organic sales grew by 6% year over year, with particularly strong performance in Cloud Software and Services, which expanded by 12%. Reported sales reached SEK 69.3 billion. Profitability also improved, with the adjusted gross margin rising to 48.0%, mainly driven by gains in Cloud Software and Services. Adjusted EBITA increased to SEK 12.7 billion, corresponding to an 18.3% margin, while net income climbed sharply to SEK 8.6 billion, compared with SEK 4.9 billion a year earlier. Regionally, growth was recorded across Europe, the Middle East, Africa, South East Asia, Oceania, and India. The Americas remained stable, while North East Asia experienced a decline.
For the full year 2025, Ericsson delivered a significant recovery in earnings. Net income surged to SEK 28.7 billion, with earnings per share of SEK 8.51, compared with just SEK 0.4 billion and EPS of SEK 0.01 in 2024. Adjusted EBITA for the year reached SEK 42.9 billion, representing an 18.1% margin, including gains from the divestment of iconectiv. The company ended the year with a strong balance sheet, holding net cash of SEK 61.2 billion, while return on capital employed rose sharply to 24.1% from 2.6% the previous year.
Supported by strong cash flow and liquidity, the Board of Directors plans to return more capital to shareholders. This includes proposing a higher dividend of SEK 3.00 per share and seeking approval for a share buyback program of up to SEK 15.0 billion.
Fri, 23 Jan 2026 11:44:58 GMT
Source: Dukascopy Bank SA
In the fourth quarter of 2025, organic sales grew by 6% year over year, with particularly strong performance in Cloud Software and Services, which expanded by 12%. Reported sales reached SEK 69.3 billion. Profitability also improved, with the adjusted gross margin rising to 48.0%, mainly driven by gains in Cloud Software and Services. Adjusted EBITA increased to SEK 12.7 billion, corresponding to an 18.3% margin, while net income climbed sharply to SEK 8.6 billion, compared with SEK 4.9 billion a year earlier. Regionally, growth was recorded across Europe, the Middle East, Africa, South East Asia, Oceania, and India. The Americas remained stable, while North East Asia experienced a decline.
For the full year 2025, Ericsson delivered a significant recovery in earnings. Net income surged to SEK 28.7 billion, with earnings per share of SEK 8.51, compared with just SEK 0.4 billion and EPS of SEK 0.01 in 2024. Adjusted EBITA for the year reached SEK 42.9 billion, representing an 18.1% margin, including gains from the divestment of iconectiv. The company ended the year with a strong balance sheet, holding net cash of SEK 61.2 billion, while return on capital employed rose sharply to 24.1% from 2.6% the previous year.
Supported by strong cash flow and liquidity, the Board of Directors plans to return more capital to shareholders. This includes proposing a higher dividend of SEK 3.00 per share and seeking approval for a share buyback program of up to SEK 15.0 billion.