[6-K] Ericsson American Current Report (Foreign Issuer)

Q: How many Kroger (KR) shares did Brian W. Nichols dispose of on 14 Jul 2025?

The Form 4 shows 118 shares were withheld or disposed of.

Q: What was the price per share for the insider transaction reported by KR?

The shares were valued at $72.27 each, per the filing.

Q: What is Brian W. Nichols’ ownership in Kroger after the reported transaction?

After the transaction, he directly owns 10,258 KR shares .

Filing Impact

(Low)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

Form 4 filing – The Kroger Co. (KR)

Vice President & Controller Brian W. Nichols reported a single insider transaction on 14 Jul 2025:

Transaction code F (share withholding to cover taxes or exercise price) involving 118 shares of Kroger common stock at a price of $72.27 per share (≈ $8.5 thousand).
Following the transaction, Nichols’ direct ownership stands at 10,258 shares.

No derivative securities were reported, and there were no additional purchases, sales, or option exercises disclosed. The filing was signed on 15 Jul 2025 by an attorney-in-fact.

This appears to be a routine tax-related share withholding representing roughly 1.1 % of Nichols’ reported holdings and is immaterial relative to Kroger’s total share count.

Insights

TL;DR: Small, tax-related insider disposition; negligible impact on KR valuation.

The 118-share withholding (code F) is a standard mechanism to settle tax obligations arising from equity grants. At ~$8.5k, it neither signals sentiment nor alters executive exposure in a meaningful way. With post-transaction ownership at 10,258 shares, Nichols retains the vast majority of his position. Given Kroger’s ~720 m outstanding shares, the event is statistically immaterial and unlikely to influence market perception or liquidity.

TL;DR: Routine compliance filing; no governance concerns detected.

Code F dispositions are generally automated to satisfy withholding requirements and do not reflect discretionary selling. The timely filing within two business days meets Section 16 compliance. No pattern of large-scale selling is evident, and the officer maintains substantial aligned equity. From a governance perspective, there is no red flag or heightened monitoring requirement stemming from this report.

07/15/2025 - 01:33 PM

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN ISSUER

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

July 15, 2025

Commission File Number 000-12033

LM ERICSSON TELEPHONE COMPANY

(Translation of registrant’s name into English)

Torshamnsgatan 21, Kista

SE-164 83, Stockholm, Sweden

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Announcement of LM Ericsson Telephone Company, July 15, 2025 regarding “Second quarter report 2025”

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


TELEFONAKTIEBOLAGET LM ERICSSON (publ)

By:		/s/ STELLA MEDLICOTT
		Stella Medlicott
		Senior Vice President,
		Chief Marketing and Communications Officer

By:		/s/ LARS SANDSTRÖM
		Lars Sandström
		Senior Vice President, Chief Financial Officer

Date: July 15, 2025

LOGO

Second quarter report 2025

Strategic highlights – solid strategic and operational execution

•

Operational excellence led to a 48% adjusted¹ gross margin and a three-year high in adjusted¹ EBITA margin.

•

Solid strategic execution in Cloud Software and Services delivered strong segment adjusted¹ EBITA.

•

Strong progress in IPR licensing; further opportunities to increase IPR revenues remain.

Financial highlights – improved contribution from all segments

•

Sales grew by 2%*, driven by market area Americas and IPR licensing, partly offset by declines in other market areas, with investments in India on hold. Reported sales were SEK 56.1 (59.8) b., with a SEK -4.7 b. FX impact.

•

Adjusted¹ gross income increased to SEK 27.0 (26.3) b. driven by strong operational execution and higher IPR licensing revenues, benefiting from a settlement. Reported gross income was SEK 26.6 (25.8) b.

•

Adjusted¹ gross margin was 48.0% (43.9%) supported by improvements in all segments, despite currency headwinds. Reported gross margin was 47.5% (43.1%).

•

Adjusted¹ EBITA was SEK 7.4 (4.1) b. with a 13.2% (6.8%) margin, benefiting from higher gross income and lower operating expenses. Reported EBITA was SEK 6.8 (2.4) b. with a 12.0% (4.1%) margin.

•

Net income was SEK 4.6 (-11.0) b. EPS diluted was SEK 1.37 (-3.34). Net income in 2024 was impacted by a SEK -11.4 b. impairment charge.

•

Free cash flow before M&A was SEK 2.6 (7.6) b. Q2 2024 benefited from strong working capital release.

Börje Ekholm, President and CEO, said: ”Our Q2 results demonstrate solid execution of our strategic and operational priorities. We achieved a three-year high in adjusted EBITA margin, supported by continued efficiency actions. We have structurally lowered our cost base and are strongly focused on delivering further efficiencies.

It is encouraging that Americas’ growth continues, and that Europe has stabilized. Global fixed wireless access (FWA) customers have now surpassed 160 million and are driving significant network traffic. Penetration of 5G standalone is still limited but is needed to fully support AI use cases at the edge, requiring ultra-low latency and enhanced uplink performance.

Looking ahead, we are increasing AI investments, including in our Sweden AI factory consortium. AI is key to accelerating innovation, as well as driving internal operational efficiencies. The ecosystem for network APIs continues to grow, and Aduna expanded its Network API reach to all three major service providers in Japan.


SEK b.	Q2 2025			Q2 2024			YoY change			Q1 2025			QoQ change			Jan-Jun 2025			Jan-Jun 2024			YoY change
Net sales		56.1			59.8			-6	%		55.0			2	%		111.2			113.2			-2	%
Organic sales growth ²*	* *	—	* *	* *	—	* *	* *	2	%	* *	—	* *	* *	—	* *	* *	—	* *	* *	—	* *	* *	1	%
Gross income		26.6			25.8			3	%		26.5			0	%		53.2			48.5			10	%
Gross margin ²		47.5	%		43.1	%		—			48.2	%		—			47.8	%		42.8	%		—
EBIT (loss)		6.4			-13.5			—			5.9			8	%		12.3			-9.4			—
EBIT margin ²		11.4	%		-22.6	%		—			10.8	%		—			11.1	%		-8.3	%		—
EBITA ²		6.8			2.4			179	%		6.7			2	%		13.4			7.3			83	%
EBITA margin ²		12.0	%		4.1	%		—			12.1	%		—			12.1	%		6.5	%		—
Net income (loss)		4.6			-11.0			—			4.2			10	%		8.8			-8.4			—
EPS diluted, SEK		1.37			-3.34			—			1.24			10	%		2.61			-2.57			—
Free cash flow before M&A ²		2.6			7.6			-66	%		2.7			-5	%		5.3			11.3			-53	%
Net cash, end of period ²		36.0			13.1			174	%		38.6			-7	%		36.0			13.1			174	%

Adjusted financial measures ¹ ²
Adjusted gross income		27.0			26.3			3	%		26.7			1	%		53.7			49.1			9	%
Adjusted gross margin		48.0	%		43.9	%		—			48.5	%		—			48.3	%		43.4	%		—
Adjusted EBIT (loss)		7.0			-11.9			—			6.2			13	%		13.3			-7.6			—
Adjusted EBIT margin		12.6	%		-19.9	%		—			11.3	%		—			11.9	%		-6.7	%		—
Adjusted EBITA		7.4			4.1			83	%		6.9			7	%		14.4			9.2			57	%
Adjusted EBITA margin		13.2	%		6.8	%		—			12.6	%		—			12.9	%		8.1	%		—

^*	Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.

¹	Adjusted metrics are adjusted to exclude restructuring charges.

²	Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.



1 Ericsson \| Second quarter report 2025. July 15, 2025.

Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations, also named organic sales growth. These numbers present performance on a comparable basis to improve the comparability of results between periods. Organic sales growth figures are non-IFRS measures. ‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. See ‘Financial statements and other information’ for Alternative performance measures.

Group results


SEK b.	Q2 2025			Q2 2024			YoY change			Q1 2025			QoQ change			Jan-Jun 2025			Jan-Jun 2024			YoY change
Net sales		56.1			59.8			-6	%		55.0			2	%		111.2			113.2			-2	%
Organic sales growth ¹	* *	—	* *	* *	—	* *	* *	2	%	* *	—	* *	* *	—	* *	* *	—	* *	* *	—	* *	* *	1	%
Gross income		26.6			25.8			3	%		26.5			0	%		53.2			48.5			10	%
Gross margin		47.5	%		43.1	%		—			48.2	%		—			47.8	%		42.8	%		—
Research and development (R&D) expenses		-12.2			-14.9			—			-12.0			—			-24.2			-26.5			—
Selling and administrative expenses		-8.2			-23.1			—			-8.6			—			-16.8			-31.8			—
Impairment losses on trade receivables		0.0			-0.1			—			0.0			6	%		0.1			-0.3			—
Other operating income and expenses		0.1			-1.3			—			0.0			—			0.1			0.7			-89	%
Share in earnings of associated companies		0.0			0.0			-33	%		0.0			—			0.0			0.0			14	%
EBIT (loss)		6.4			-13.5			—			5.9			8	%		12.3			-9.4			—
EBIT margin ¹		11.4	%		-22.6	%		—			10.8	%		—			11.1	%		-8.3	%		—
EBITA ¹		6.8			2.4			179	%		6.7			2	%		13.4			7.3			83	%
EBITA margin ¹		12.0	%		4.1	%		—			12.1	%		—			12.1	%		6.5	%		—
Financial income and expenses, net		0.0			-0.4			—			-0.1			—			0.0			-0.8			—
Income tax		-1.8			2.9			—			-1.6			—			-3.4			1.9			—
Net income (loss)		4.6			-11.0			—			4.2			10	%		8.8			-8.4			—
Restructuring charges	* *	-0.7	* *	* *	-1.6	* *	* *	—	* *	* *	-0.3	* *	* *	—	* *	* *	-0.9	* *	* *	-1.8	* *	* *	—	* *

Adjusted financial measures ¹
Adjusted gross income		27.0			26.3			3	%		26.7			1	%		53.7			49.1			9	%
Adjusted gross margin		48.0	%		43.9	%		—			48.5	%		—			48.3	%		43.4	%		—
Adjusted EBIT (loss)		7.0			-11.9			—			6.2			13	%		13.3			-7.6			—
Adjusted EBIT margin		12.6	%		-19.9	%		—			11.3	%		—			11.9	%		-6.7	%		—
Adjusted EBITA		7.4			4.1			83	%		6.9			7	%		14.4			9.2			57	%
Adjusted EBITA margin		13.2	%		6.8	%		—			12.6	%		—			12.9	%		8.1	%		—

¹	Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.

²	Excluding the non-cash impairment recorded in the second quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition.

Net sales

Reported sales decreased by -6% to SEK 56.1 (59.8) b., as organic sales growth of 2%* YoY was offset by a SEK -4.7 b. currency impact. Networks sales declined by -5% to SEK 35.7 b. Cloud Software and Services sales declined by -5% to SEK 14.4 b. while Enterprise sales declined by -14% to SEK 5.5 b. Sales in segment Other declined by -6% to SEK 0.5 b.

Sales grew by 2%* YoY. Networks sales grew by 3%*, benefiting from sales growth in market area Americas and increased IPR licensing revenues. Sales were broadly stable in market area Europe, Middle East and Africa while sales declined in the other market areas. Sales in India were weak, as operators held back on new network investments. Cloud Software and Services sales grew by 1%* supported by growth in market area Americas and increased IPR licensing revenues. Sales in segment Enterprise declined by-6%*, with lower sales in Technologies and New Businesses and in Global Communications Platform, reflecting the 2024 decision to reduce activities in some countries, partly offset by higher sales in Enterprise Wireless Solutions.

IPR licensing revenues increased to SEK 4.9 (3.9) b. mainly driven by higher revenue from previously unlicensed periods, following the partial settlement of a patent licensing dispute. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services. IPR licensing revenue growth opportunities remain.

Gross income and margin

Gross margin increased to 47.5% (43.1%) with improvements in all segments. Networks gross margin increased, reflecting higher IPR licensing revenues and prior years’ cost-reduction actions. Gross

margin in Cloud Software and Services increased as a result of a higher share of software sales as well as a benefit from increased IPR licensing revenues. The margin improvement in Enterprise was driven by the prioritization of profitable market segments in Global Communications Platform and a stronger product mix in Enterprise Wireless Solutions.

Gross income increased to SEK 26.6 (25.8) b., mainly driven by increased IPR licensing revenues, prior years’ cost-reduction actions which are now flowing through and a favorable sales mix, partly offset by a negative currency impact.

Adjusted gross income increased to SEK 27.0 (26.3) b., with a margin of 48.0% (43.9%), impacted by a currency effect of SEK -2.4 b.

Research and development (R&D) expenses

R&D expenses decreased to SEK -12.2 (-14.9) b., including a currency benefit of SEK 0.5 b. Q2 2024 included a SEK -1.2 b. impact relating to an impairment of intangible assets. Increased investments in R&D for technology leadership were offset by savings from prior years’ cost-reduction actions.

Selling and administrative (SG&A) expenses

SG&A expenses were SEK -8.2 (-23.1) b., including a currency benefit of SEK 0.5 b. Q2 2024 included a SEK -12.6 b. impact from the impairment of intangible assets. SG&A expenses declined in all segments as a result of prior years’ cost-reduction actions.



2 Ericsson \| Second quarter report 2025. July 15, 2025.		Group results

Other operating income and expenses

Other operating income and expenses were SEK 0.1 (-1.3) b. Q2 2024 included a SEK -1.3 b. impact from the impairment charge.

Restructuring charges

Restructuring charges were SEK -0.7 (-1.6) b., with SEK -0.3 (-0.5) b. included in gross income and SEK -0.3 (-1.2) b. in operating expenses.

EBITA

EBITA increased to SEK 6.8 (2.4) b. with a margin of 12.0% (4.1%). The improvement was driven by improved gross income, benefiting from a more favorable sales mix including higher IPR licensing revenues and improved commercial discipline, as well as lower operating expenses as a result of prior years’ cost-reduction actions, partly offset by negative currency impacts.

Adjusted EBITA increased to SEK 7.4 (4.1) b. with a margin of 13.2% (6.8%), including a currency impact of SEK -1.4 b.

EBIT

EBIT increased to SEK 6.4 (-13.5) b. with a margin of 11.4% (-22.6%). Q2 2024 included a SEK -15.1 b. impairment charge impact. Amortization impacted EBIT by SEK -0.4 (-0.8) b.

Adjusted EBIT increased to SEK 7.0 (-11.9) b. with a margin of 12.6% (-19.9%).

Financial income and expenses, net

Financial income and expenses were SEK 0.0 (-0.4) b. Financial net improved, primarily as a result of currency revaluation of financial balance sheet items including a currency hedge effect of SEK 0.1 (0.0) b.

Income tax

Taxes were SEK -1.8 (2.9) b. Q2 2024 included a SEK 3.7 b. tax benefit resulting from the impairment of intangible assets. Estimated tax rate for the year is 28%.

Net income

Net income was SEK 4.6 (-11.0) b. Q2 2024 included a SEK -11.4 b. net impact from the impairment. EBIT and financial net increased, partly offset by higher taxes. Diluted EPS was SEK 1.37 (-3.34).

Employees

The number of employees on June 30, 2025, was 91,937 compared with 92,866 on March 31, 2025.

Financial highlights, year-to-date (Jan-June) development

Reported sales decreased by -2% to SEK 111.2 (113.2) b. as organic sales growth was offset by a currency impact of SEK -2.9 b. Sales were stable in Networks at SEK 71.4 (71.4) b., while sales in Cloud Software and Services declined by -3% to SEK 27.3 (28.2) b. and Enterprise sales declined by -8% to SEK 11.5 (12.5) b.

Sales increased by 1%* mainly driven by a 3%* increase in Networks. Cloud Software and Services sales declined by -1%* and Enterprise declined by -6%*.

Sales increased in market area Americas, benefiting from growth in North America, while sales in Latin America declined. Sales declined in the other market areas, with the largest reduction in market area South East Asia, Oceania and India primarily driven by reduced investment levels in India. Sales were supported by IPR licensing revenues of SEK 8.0 (7.0) b.

Gross income increased to SEK 53.2 (48.5) b. with a gross margin of 47.8% (42.8%). The improved gross margin is a result of cost- reduction actions, a more favorable product and market mix and increased IPR licensing revenues. Gross income increased, reflecting improved gross margins, partly offset by negative currency impacts. Adjusted gross income increased to SEK 53.7 (49.1) b. including a currency impact of SEK -1.5 b. Adjusted gross margin increased to 48.3% (43.4%).

EBITA increased to SEK 13.4 (7.3) b. and the margin was 12.1% (6.5%). Higher gross income and lower operating expenses were partly offset by negative currency impacts.

Adjusted EBITA increased to SEK 14.4 (9.2) b. including a currency impact of SEK -1.1 b. Adjusted EBITA margin was 12.9% (8.1%).

EBIT (loss) increased to SEK 12.3 (-9.4) b., and the margin was 11.1% (-8.3%).

Adjusted EBIT (loss) was SEK 13.3 (-7.6) b. with a margin of 11.9% (-6.7%). 2024 was impacted by a SEK -15.1 b. impairment charge. Amortization of intangible assets was SEK -1.1 (-1.6) b.

Net income (loss) increased to SEK 8.8 (-8.4) b. 2024 included a SEK -11.4 b. net impact from impairment charges. Diluted EPS increased to SEK 2.61 (-2.57).



3 Ericsson \| Second quarter report 2025. July 15, 2025.		Group results

Market area sales


SEK b.	Q2 2025			Q2 2024			YoY change			YoY organic growth			Q1 2025			QoQ change			Jan-Jun 2025			Jan-Jun 2024			YoY change			YoY organic growth
Americas		19.8			19.8			0	%		10	%		20.8			-5	%		40.5			36.3			12	%		14	%
Europe, Middle East and Africa		16.2			17.3			-6	%		-1	%		14.5			12	%		30.7			32.6			-6	%		-4	%
South East Asia, Oceania and India		5.5			7.7			-28	%		-22	%		7.2			-24	%		12.7			16.3			-22	%		-19	%
North East Asia		3.8			4.6			-17	%		-15	%		3.2			17	%		7.0			8.0			-13	%		-12	%
Other		10.9			10.5			4	%		15	%		9.3			17	%		20.3			20.1			1	%		5	%
Of which IPR	* *	4.9	* *	* *	3.9	* *	* *	25	%		—		* *	3.2	* *	* *	53	%	* *	8.0	* *	* *	7.0	* *	* *	15	%		—
Total		56.1			59.8			-6	%		2	%		55.0			2	%		111.2			113.2			-2	%		1	%

Market Area Americas

Sales increased by 10%* YoY, with good growth in North America partly offset by significantly lower sales in Latin America. In North America, sales in Networks and Cloud Software and Services increased, benefiting from previous contract wins. In Latin America, sales declined due to continued elevated competition and lower customer network investments. Reported sales were stable YoY.

Market Area Europe, Middle East and Africa

Sales decreased by -1%* YoY. Sales in Europe increased slightly, supported by network modernization. Sales declined in Middle East & Africa due to timing of project deliveries and managed services contract exits in certain markets. Reported sales decreased by -6% YoY.

In the quarter, an agreement with e& UAE was announced, to expand and evolve the 5G Radio Access Network. An agreement with Orange Group was also announced, to provide 5G network slicing orchestration across its European operations.

Market Area South East Asia, Oceania and India

Sales decreased by -22%* YoY. Networks sales declined, primarily due to reduced network investment levels in India, as well as increased competition in South East Asia. Cloud Software and Services sales declined, reflecting timing of project deliverables. Reported sales declined by -28% YoY.

In the quarter, a multi-year Network Operations Center Managed Services contract with Bharti Airtel was announced.

Market Area North East Asia

Sales declined by -15%* YoY. Networks sales declined, reflecting reduced customer investments in some 5G frontrunner markets. Cloud Software and Services sales declined, reflecting timing of project deliverables. Reported sales declined by -17% YoY.

In the quarter, an R&D investment in Japan was announced, which aims to support the strengthened market position in key strategic markets.

Market Area Other

Market area Other includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 15%*, benefiting from increased IPR licensing revenues from previously unlicensed periods, following the partial settlement of a patent licensing dispute. Reported sales increased by 4% YoY.



4 Ericsson \| Second quarter report 2025. July 15, 2025.		Market area sales

Segment results

Mobile Networks – Segment Networks


SEK b.	Q2 2025			Q2 2024			YoY change			Q1 2025
Net sales		35.7			37.7			-5	%		35.6
Of which IPR licensing revenues	* *	4.0	* *	* *	3.2	* *	* *	25	%	* *	2.6	* *
Organic sales growth	* *	—	* *	* *	—	* *	* *	3	%	* *	—	* *
Gross income		17.6			17.1			3	%		18.1
Gross margin		49.3	%		45.5	%		—			50.8	%
EBIT		6.4			4.8			34	%		7.0
EBIT margin		17.8	%		12.6	%		—			19.8	%
EBITA		6.4			4.8			34	%		7.4
EBITA margin		17.9	%		12.7	%		—			20.7	%
Restructuring charges		-0.1			-0.5			—			-0.1
Adjusted financial measures
Adjusted gross income		17.7			17.4			2	%		18.2
Adjusted gross margin		49.5	%		46.1	%		—			51.0	%
Adjusted EBIT		6.5			5.2			24	%		7.1
Adjusted EBIT margin		18.1	%		13.9	%		—			20.1	%
Adjusted EBITA		6.5			5.3			24	%		7.5
Adjusted EBITA margin		18.2	%		13.9	%		—			21.0	%

Breakdown of sales into products, services and IPR licensing is available in note 3.

Net sales

Sales increased by 3%*. Sales grew in market area Americas and IPR licensing revenues increased, benefiting from revenue from previously unlicensed periods. Sales increased slightly in market area Europe, Middle East and Africa while sales declined in the other market areas, where customer investment levels remained low. Reported sales decreased by -5% YoY to SEK 35.7 (37.7) b., including a currency impact of SEK -3.1 b.

Sales in North America grew while sales in Latin America declined. Sales declined significantly in market area South East Asia, Oceania and India, mainly as a result of reduced customer investments in networks in India.

Gross income and margin

Adjusted gross margin increased to 49.5% (46.1%), benefiting from higher IPR licensing revenues, prior years’ cost-reduction actions, as well as market mix, partly offset by a negative impact from tariffs. Adjusted gross income increased to SEK 17.7 (17.4) b., including a SEK -1.7 b. currency impact.

EBITA

Adjusted EBITA increased to SEK 6.5 (5.3) b. YoY and the margin was 18.2% (13.9%), supported by increased gross income and lower operating expenses. Adjusted EBITA included a SEK -1.3 b. currency impact. Operating expenses decreased, benefiting from continued efficiency improvements as well as a positive currency impact, partly offset by R&D investments to support the strategy to build high-performing programmable networks and maintain technology leadership.

Net sales rolling four quarters were SEK 158.2 b. and the adjusted EBITA margin rolling four quarters was 20.4%.

Mobile Networks – Segment Cloud Software and Services


SEK b.	Q2 2025			Q2 2024			YoY change			Q1 2025
Net sales		14.4			15.2			-5	%		13.0
Of which IPR licensing revenues	* *	0.9	* *	* *	0.7	* *	* *	25	%	* *	0.6	* *
Organic sales growth	* *	—	* *	* *	—	* *	* *	1	%	* *	—	* *
Gross income		6.0			5.4			10	%		5.1
Gross margin		41.5	%		35.6	%		—			39.1	%
EBIT (loss)		0.8			-0.7			—			0.1
EBIT margin		5.8	%		-4.8	%		—			0.5	%
EBITA (loss)		0.8			-0.7			—			0.1
EBITA margin		5.9	%		-4.7	%		—			0.6	%
Restructuring charges		-0.5			-0.8			—			-0.1
Adjusted financial measures
Adjusted gross income		6.2			5.7			10	%		5.2
Adjusted gross margin		43.2	%		37.2	%		—			39.9	%
Adjusted EBIT		1.4			0.1			—			0.1
Adjusted EBIT margin		9.6	%		0.6	%		—			1.1	%
Adjusted EBITA		1.4			0.1			—			0.2
Adjusted EBITA margin		9.6	%		0.6	%		—			1.2	%

Breakdown of sales into products, services and IPR licensing is available in note 3.

Net sales

Sales increased by 1%*. Sales grew in market area Americas and IPR licensing revenues increased, benefiting from revenue from previously unlicensed periods. Sales declined in the other market areas, mainly reflecting timing of project deliverables. Reported sales decreased by -5% to SEK 14.4 (15.2) b., including a currency impact of SEK -1.0 b. Services sales accounted for 62% (68%) of sales.

Gross income and margin

Adjusted gross margin increased to 43.2% (37.2%), benefiting from favorable sales mix, with a higher share of software sales, as well as higher IPR licensing revenues. The gross margin also benefited from improved delivery performance in customer projects. Adjusted gross income increased to SEK 6.2 (5.7) b. including a SEK -0.4 b. currency impact.

EBITA

Adjusted EBITA was SEK 1.4 (0.1) b. with a margin of 9.6% (0.6%) supported by higher gross income and lower operating expenses. Adjusted EBITA included a SEK -0.1 b. currency impact. Operating expenses decreased, benefiting from prior years’ cost-reduction actions and a positive currency impact. EBITA benefited from higher IPR licensing revenues and strong software sales. The improvement in EBITA was also driven by strong strategy execution, with a focus on commercial discipline, acceleration of automation, and scalable software deployments.

Net sales rolling four quarters were SEK 61.7 b. and the adjusted EBITA margin rolling four quarters was 6.1%.



5 Ericsson \| Second quarter report 2025. July 15, 2025.		Segment results

Enterprise – Segment Enterprise


SEK b.	Q2 2025			Q2 2024			YoY change			Q1 2025
Net sales		5.5			6.5			-14	%		5.9
Of which Global Comms Platform (Vonage)	* *	3.2	* *	* *	3.8	* *	* *	-17	%	* *	3.4	* *
Of which Enterprise Wireless Solutions	* *	1.2	* *	* *	1.2	* *	* *	-4	%	* *	1.2	* *
Organic sales growth	* *	—	* *	* *	—	* *	* *	-6	%	* *	—	* *
Gross income		3.0			3.3			-8	%		3.3
Gross margin		54.9	%		51.0	%		—			56.3	%
EBIT (loss)		-0.9			-17.4			—			-1.0
EBIT margin		-15.7	%		-268.7	%		—			-17.1	%
EBITA (loss)		-0.5			-1.5			—			-0.6
EBITA margin		-9.4	%		-23.3	%		—			-10.5	%
Restructuring charges		0.0			-0.3			—			-0.1
Adjusted financial measures
Adjusted gross income		3.0			3.3			-8	%		3.3
Adjusted gross margin		54.9	%		51.1	%		—			56.2	%
Global Comms Platform (Vonage)	* *	47.8	%	* *	43.2	%	* *	—	* *	* *	51.0	%
Enterprise Wireless Solutions	* *	62.8	%	* *	59.5	%	* *	—	* *	* *	58.5	%
Adjusted EBIT (loss)		-0.9			-17.1			—			-0.9
Adjusted EBIT margin		-15.5	%		-264.3	%		—			-15.5	%
Adjusted EBITA (loss)		-0.5			-1.2			—			-0.5
Of which Global Comms Platform (Vonage) ¹	* *	-0.4	* *	* *	-0.7	* *	* *	—	* *	* *	-0.5	* *
Of which Enterprise Wireless Solutions ¹	* *	-0.4	* *	* *	-0.7	* *	* *	—	* *	* *	-0.3	* *
Adjusted EBITA margin		-9.3	%		-18.9	%		—			-8.9	%

¹	Common costs are included at segment level only (not distributed within the segment).

Net sales

Sales declined by -6%* YoY, with lower sales in Global Communications Platform and in Technologies and New Businesses, partly offset by organic sales growth in Enterprise Wireless Solutions. Reported sales decreased by -14% YoY to SEK 5.5 (6.5) b., including a currency impact of SEK -0.5 b.

Sales in Enterprise Wireless Solutions grew by 5%* YoY, driven by higher product and subscription sales in WWAN. Sales growth slowed in the quarter, reflecting a more cautious customer investment environment.

Sales in Global Communications Platform declined by -9%* YoY, reflecting the 2024 decision to reduce activities in some countries. The impact from the decision is expected to gradually decrease during the second half of 2025. Execution of the turnaround plan continues, with Q2 2025 marking the first quarter with sequential sales growth and a continued improvement in gross income, excluding currency impacts.

Gross income and margin

Adjusted gross margin increased to 54.9% (51.1%), benefiting from the decision to focus on more profitable market segments in Global Communications Platform and from a stronger product mix in Enterprise Wireless Solutions. Adjusted gross income was SEK 3.0 (3.3) b., including a SEK -0.3 b. currency impact.

EBITA (loss)

Adjusted EBITA (loss) was SEK -0.5 (-1.2) b., benefiting from reduced operational expenses in Enterprise Wireless Solutions and Global Communications Platform, including a positive currency impact. Adjusted EBITA included a SEK 0.0 b. currency impact. Adjusted EBITA margin was -9.3% (-18.9%).

Net sales rolling four quarters were SEK 23.9 b. and the adjusted EBITA margin rolling four quarters was -12.6%.

Segment Other


SEK b.	Q2 2025			Q2 2024			YoY change			Q1 2025
Net sales		0.5			0.5			-6	%		0.5
Organic sales growth	* *	—	* *	* *	—	* *	* *	-1	%	* *	—	* *
Gross income		0.0			0.0			—			0.0
Gross margin		0.4	%		-8.1	%		—			3.8	%
EBIT (loss)		0.0			-0.1			—			-0.2
EBIT margin		9.5	%		-23.2	%		—			-35.0	%
EBITA (loss)		0.0			-0.1			—			-0.2
EBITA margin		9.5	%		-23.0	%		—			-35.0	%
Restructuring charges		0.0			0.0			—			0.0
Adjusted financial measures
Adjusted gross income		0.0			0.0			—			0.0
Adjusted gross margin		0.4	%		-7.5	%		—			4.2	%
Adjusted EBIT (loss)		0.0			-0.1			—			-0.2
Adjusted EBIT margin		9.5	%		-14.1	%		—			-34.6	%
Adjusted EBITA (loss)		0.0			-0.1			—			-0.2
Adjusted EBITA margin		9.5	%		-13.9	%		—			-34.6	%

Net sales

Reported sales were stable at SEK 0.5 (0.5) b.

Gross income and margin

Adjusted gross income was SEK 0.0 (0.0) b. Adjusted gross margin was 0.4% (-7.5%).

EBITA

Adjusted EBITA was SEK 0.0 (-0.1) b.

Net sales rolling four quarters were SEK 2.0 b.



6 Ericsson \| Second quarter report 2025. July 15, 2025.		Segment results

Cash flow and financial position


Free cash flow bridge, SEK b.	Q2 2025			Q2 2024			Q1 2025			Jan-Jun 2025			Jan-Jun 2024
Adjusted EBITA		7.4			4.1			6.9			14.4			9.2

Depreciation and amortization of non-acquired assets		1.8			2.1			2.0			3.8			3.9

Restructuring charges		-0.7			-1.6			-0.3			-0.9			-1.8

Changes in operating net assets		-2.7			6.5			-2.8			-5.5			7.2

Interest paid/received, taxes paid, and other		-1.8			-1.7			-1.5			-3.2			-4.1

Cash flow from operating activities		4.2			9.3			4.4			8.5			14.4

Net capex and other investing activities		-1.0			-1.0			-1.1			-2.1			-1.8

Repayment of lease liabilities		-0.6			-0.7			-0.6			-1.1			-1.3

Free cash flow before M&A		2.6			7.6			2.7			5.3			11.3



Cash flow from operating activities		4.2			9.3			4.4			8.5			14.4
Cash flow from investing activities		-10.9			-6.0			1.3			-9.6			-7.3
Cash flow from financing activities		-3.5			-5.7			-0.7			-4.2			-14.2


SEK b.	Jun 30 2025			Jun 30 2024			Mar 31 2025
Gross cash		73.3			53.7			74.2

- Borrowings, current		7.3			8.1			5.6
- Borrowings, non-current		29.9			32.5			29.9

Net cash		36.0			13.1			38.6

Equity		85.7			82.5			84.9
Equity ratio (%)		31.7	%		29.6	%		30.5	%
Capital turnover (times)		1.6			1.4			1.6
Return on capital employed (%)		16.8	%		-18.4	%		3.8	%

Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.

Cash flow

Cash flow from operating activities was SEK 4.2 (9.3) b. Adjusted EBITA was higher YoY, however Q2 2024 cash flow benefited from a significant reduction in operating working capital, reflecting the completion of large-scale roll-out projects and inventory reductions.

In Q2 2025, operating net assets increased, primarily due to lower deferred revenues.

Cash flow from investing activities was SEK -10.9 (-6.0) b., primarily driven by increased investments in interest-bearing securities.

In Q2 2025, net investments in interest-bearing securities amounted to SEK -9.7 b.

In Q2 2025, cash flow from financing activities was SEK -3.5 (-5.7) b., benefiting from collateral received for derivative contracts.

In Q2 2025, the first dividend payment to shareholders of SEK -4.8 b. and repayment of lease liabilities were partly offset by a positive effect from collateral received for derivative contracts. The second dividend payment will be made in October to the shareholders of the parent company.

Financial position

Gross cash decreased sequentially by SEK -0.9 b. to SEK 73.3 b. driven by dividends paid, partly offset by positive free cash flow before M&A and collateral received on derivatives.

During the quarter, Ericsson replaced its USD 1.0 b. liquidity revolving credit facility, maturing in May 2026, with a new USD 0.5 b. facility maturing in May 2027. By the end of Q2, the total unutilized committed credit facilities amounted to SEK 23.7 b. (USD 2.5 b.).

The average maturity of parent company borrowings was 3.2 years as of June 30, 2025, compared with 3.5 years as of June 30, 2024.

Net cash decreased sequentially by SEK -2.6 b. to SEK 36.0 b. driven by dividends paid, partly offset by positive free cash flow before M&A.

Liabilities for post-employment benefits increased to SEK 24.9 b. from SEK 21.8 b. in Q1 2025. The Swedish defined benefit obligation (DBO) was calculated using a discount rate based on the yields of Swedish government bonds. If the discount rate had been based on Swedish covered mortgage bonds, the liability for post-employment benefits would have been approximately SEK 11.1 b., which is SEK 9.6 b. lower than current DBO.



7 Ericsson \| Second quarter report 2025. July 15, 2025.		Cash flow and financial position

Key data points

Market

Dell’Oro estimates that the global RAN equipment market will remain stable in 2025.

Source: Dell’Oro Mobile RAN Quarterly Report 1Q25, May 2025.

Ericsson

Net sales

Reported average seasonality last 3 years (2022–2024), %.


	Q4gQ1			Q1gQ2			Q2gQ3			Q3gQ4
Networks		-24	%		+8	%		+3	%		+16	%
Cloud Software and Services		-33	%		+15	%		+1	%		+33	%

Net sales may show large variations between quarters, including currency changes.

IPR licensing revenues

At the end of Q2 2025, recurring annual IPR licensing revenues were approximately SEK 13 b.

Currency exposure

Rule of thumb: A 10% appreciation/depreciation in the USD vs. SEK would have a positive/negative impact of approximately 5% on net sales.

Amortization of intangible assets

Amortization of intangible assets is expected to be around SEK -0.5 b. per quarter, of which approximately SEK -0.4 b. related to segment Enterprise.

Restructuring charges

Restructuring charges for 2025 are expected to remain at elevated levels.

Segments

Increased uncertainty remains on the outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment.

Networks

Sales growth in Q3 2025 is expected to be below 3-year average seasonality, reflecting higher Q2 IPR revenue from previously unlicensed periods.

Adjusted gross margin in Q3 is expected to be in the range of 48% to 50%.

Cloud Software and Services

Sales growth in Q3 2025 is expected to be broadly similar to 3-year average seasonality.



8 Ericsson \| Second quarter report 2025. July 15, 2025.		Key data points

Parent Company

Income after financial items January – June 2025, was SEK 19.3 (-7.1) b.

At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 60.1 (40.0) b.

There was a decrease in intercompany lending of SEK 1.7 b. and in intercompany borrowing of SEK 2.1 b. in the quarter.

At the end of the quarter, non-restricted equity amounted to SEK 31.9 (10.9) billion, and total equity amounted to SEK 80.2 (59.2) b.

The Parent Company has recognized dividends from subsidiaries of SEK 18.9 (1.7) b. in the quarter.

The AGM 2025 resolved to issue 23,100,000 Class C shares for the Long-Term Variable Compensation Programs LTV II 2025 and LTV 2024 for Ericsson’s Executive Team and other executives. In accordance with an authorization from the AGM, the Board of Directors resolved to repurchase the new issued shares, which were subsequently converted into Class B shares. The quotient value of the repurchased shares was SEK 5.00, totaling SEK 115.5 million.

In accordance with the conditions of the Long-Term Variable Compensation Program (LTV) for Ericsson employees, 614,487 shares from treasury stock were distributed or sold to employees in the second quarter. The holding of treasury stock on June 30, 2025, was 38,065,074 Class B shares.



9 Ericsson \| Second quarter report 2025. July 15, 2025.		Parent Company

Other information

Legal proceedings involving governmental authorities

In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization.

The Company continues to fully cooperate with the DOJ in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics concerning jurisdictions including Iraq, and the Company is providing additional documents and other information which continue to be requested by the DOJ. As additional information continues to be identified and evaluated in continued cooperation with the DOJ during its ongoing investigation, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain.

As part of its defense to a now settled patent infringement lawsuit filed by Ericsson in 2013 in the Delhi High Court against Indian handset company Micromax, Micromax filed a complaint against Ericsson with the Competition Commission of India. The Competition Commission of India decided to refer the case to the Director General’s Office for an in-depth investigation. The Competition Commission of India opened similar investigations against Ericsson in January 2014 based on claims made by Intex Technologies (India) Limited and, in 2015, based on a now settled claim from iBall. Ericsson has challenged Competition Commission of India’s jurisdiction in these cases before the Delhi High Court. On July 13, 2023, the Division Bench of the Delhi High Court found that in this instance the Competition Commission of India has no power to conduct the pending investigations against Ericsson. The Competition Commission of India has appealed this order to the Supreme Court of India.

In April 2019, Ericsson was informed by China’s State Administration for Market Regulation Anti-monopoly Bureau (SAMR) that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact-finding and meetings with SAMR in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, SAMR has the power to impose behavioral and financial remedies.

Legal proceedings not involving governmental authorities

In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the U.S. Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), President and CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter.

In February 2024, a second civil lawsuit also alleging violations of the U.S. Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same law firm and involves substantially similar factual allegations and claims as those made in the Anti-Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, President and CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.

Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024. On February 14, 2025, the District Court ordered Ericsson to produce the 2019 internal Iraq investigation report to the claimants’ external counsel. Ericsson has appealed the decision. While proceedings on the merits of the case are stayed pending final resolution of the document production issue, the District Court has scheduled a preliminary hearing for October 16, 2025. Ericsson will continue to vigorously defend this matter.



10 Ericsson \| Second quarter report 2025. July 15, 2025.		Other information

The Company actively manages its IPR portfolio and its need for third-party licenses and is involved from time to time, in the ordinary course of business, in litigation related thereto, as plaintiff, defendant and other capacities.

In addition to the proceedings discussed above, the Company is, and in the future may be, involved in various other regulatory investigations, lawsuits, claims (including claims by third-parties the Company has indemnified against infringement liability or provided guarantees to) and proceedings incidental to the ordinary course of business.

PRESS RELEASES


April 30, 2025		Ericsson’s Nomination Committee appointed
May 05, 2025		Ericsson resolves on an acquisition offer for C shares for the Long-Term Variable Compensation Programs LTV 2025 and LTV 2024
May 19, 2025		Ericsson to utilize mandate to transfer shares
May 30, 2025		New number of shares and votes in Telefonaktiebolaget LM Ericsson



11 Ericsson \| Second quarter report 2025. July 15, 2025.		Other information

Risk factors

Ericsson is exposed to a number of risks in its activities. To stimulate identification and support cross-functional treatment within the Ericsson Group, risks are grouped in a number of categories, including, for example, risks relating to technology, IPR, compliance, project execution, operations, products and services, treasury and accounting, the geopolitical environment, M&A, cybersecurity and occupational health and safety. Ericsson’s risk management is embedded into strategy development and operational processes, and material Group risks are regularly assessed and reviewed by executives as required by Ericsson’s Material Group Risk Protocol to ensure accountability, effectiveness, efficiency, business continuity and compliance. Risks are defined in both a short-term and long-term perspective and are related to long-term objectives and strategic direction as well as to short-term objectives. Risk factors and uncertainties of relevance to Ericsson are described in the Ericsson Annual Report 2024 and in the Annual Report on Form 20-F for the year ended December 31, 2024 (in the following, the “Annual Report 2024”). See also the risks set out in the section titled “Forward-looking statements.”

This report has not been reviewed by Telefonaktiebolaget LM Ericsson auditors.

Date for next report: October 14, 2025



12 Ericsson \| Second quarter report 2025. July 15, 2025.		Risk factors

Board assurance

The Board of Directors and the President and CEO certify that the financial report for the six months gives a fair view of the performance of the business, position and profit or loss of the Company and the Group and describes the principal risks and uncertainties that the Company and the companies in the Group face.

Stockholm, July 15, 2025

Telefonaktiebolaget LM Ericsson (publ)

Org. Nr. 556016-0680


Jan Carlson	Jacob Wallenberg	Jon Fredrik Baksaas
Chair	Deputy Chair	Member of the Board

Christian Cederholm	Börje Ekholm	Eric A. Elzvik
Member of the Board	President, CEO and member of the Board	Member of the Board

Marachel Knight	Kristin S. Rinne	Jonas Synnergren
Member of the Board	Member of the Board	Member of the Board

Christy Wyatt	Karl Åberg
Member of the Board	Member of the Board

Ulf Rosberg	Annika Salomonsson	Kjell-Åke Soting
Member of the Board	Member of the Board	Member of the Board



13 Ericsson \| Second quarter report 2025. July 15, 2025.		Board assurance

Editor’s note

Media and analyst briefing

Ericsson invites media, investors and analysts to a conference call and live video webcast at 9:00 AM CEST on July 15, 2025.

Link to the webcast, dial-in to audio conference, supporting material and replay will be available at:

www.ericsson.com/investors and

www.ericsson.com/newsroom

For further information, please contact:

Lars Sandström, Senior Vice President, Chief Financial Officer

Phone: +46 72 161 20 04

E-mail: investor.relations@ericsson.com

Stella Medlicott, Senior Vice President, Chief Marketing and Communications Officer

Phone: +46 73 095 65 39

E-mail: media.relations@ericsson.com

Telefonaktiebolaget LM Ericsson

Org. number: 556016-0680

Torshamnsgatan 21

SE-164 83 Stockholm

Phone: +46 10 719 00 00

www.ericsson.com

Investors

Daniel Morris, Vice President,

Head of Investor Relations

Phone: +44 7386 657217

E-mail: investor.relations@ericsson.com

Lena Häggblom, Director,

Investor Relations

Phone: +46 72 593 27 78

E-mail: lena.haggblom@ericsson.com

Alan Ganson, Director,

Investor Relations

Phone: +46 70 267 27 30

E-mail: alan.ganson@ericsson.com

Media

Ralf Bagner, Head of Media Relations

Phone: + 46 76 128 47 89

E-mail: media.relations@ericsson.com

Corporate Communications

Phone: +46 10 719 69 92

E-mail: media.relations@ericsson.com



14 Ericsson \| Second quarter report 2025. July 15, 2025.		Editor’s note

Forward-looking statements

This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “forecast,” “will,” “should,” “would,” “predict,” “aim,” “ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in each case, their negative or variations, and similar words or expressions are used to identify forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially and adversely from those expressed in, or implied or projected by, the forward-looking statements, including, in particular the following:

•

Potential material additional liability resulting from past conduct, including allegations of past conduct that remains unresolved or unknown in multiple jurisdictions including Iraq, which remains the subject of ongoing investigations by Ericsson and US governmental authorities

•

Risks related to internal controls and governance, including the potential to incur material liability in connection with internal controls surrounding payments made to third parties in connection with past conduct in multiple jurisdictions including Iraq which remains the subject of ongoing investigations by Ericsson and US governmental authorities

•

The risk that the ongoing investigations by Ericsson and US governmental authorities result in a conclusion by Ericsson or US governmental authorities that the Company’s past conduct included making or having responsibility for making payments to a terrorist organization or other improper payments, which could lead to material additional liability

•

Risks related to our ongoing compliance with obligations under the National Security Agreement entered into in connection with Ericsson’s acquisition of Vonage, which may adversely affect the Vonage business and subject the Company to additional liabilities

•

Our goals, strategies, planning assumptions and operational or financial performance expectations

•

Macroeconomic conditions, including inflationary pressures and effects on customer investments, market recovery and growth

•

Ongoing geopolitical and trade uncertainty, including challenging global economic conditions, market trends and the imposition of tariffs and sanctions

•

Continued growth of mobile communications, the success of our existing and targeted customer base, and our ability to maintain technology leadership

•

Success in implementing key strategies, including improving profitability, capturing 5G market opportunities, capitalizing on network API and Enterprise opportunities, and expected benefits from restructuring activities

•

Risks related to cybersecurity and privacy, security and data localization

•

Industry trends, future characteristics and development of the markets in which we operate

•

Risks of global operations, including legal and regulatory requirements and uncertainties, and unfavorable lawsuits and legal proceedings

•

Our future liquidity, capital resources, capital expenditures, cost savings and profitability, and risks related to financial condition

•

The expected demand for our existing and new products and services as well as plans to launch new products and services including research and development expenditures

•

Our ability to deliver on future plans and achieve future growth

•

The expected operational or financial performance of strategic cooperation activities and joint ventures

•

Risks related to acquisitions and divestments that may be disruptive and incur significant expenses, including our ability to successfully consummate such transactions, protect the value of acquisitions during integration, or achieve the value anticipated with an acquisition

•

Trends related to our industry, including our regulatory environment, competition and customer structure

•

Intense competition from existing competitors, and new entrants, including vendor consolidation

•

Limited number of third-party suppliers, large, multi-year agreements with limited number of key customers, and operator consolidation

•

Risks related to intellectual property, key employees, and unforeseen risks and disruptions due to natural or man-made events

•

Risks related to environmental, social and business conduct

•

Extent of impairment impacts on cash flow and dividend capacity in future periods, which is assessed based on full-year performance and is impacted by a variety of factors, including earnings, business outlook and financial position

•

Other factors included in our filings with the SEC, including the factors described throughout this report, included in the section Risk Factors, and in “Risk Factors” in the Annual Report 2024, as updated by subsequent reports filed with the SEC.

These forward-looking statements also represent our estimates, assumptions and expectations only as of the date that they were made, and to the extent they represent third-party data, we have not undertaken to independently verify such third-party data and do not intend to do so. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements and are urged to carefully review and consider the various disclosures made in this report and in other documents we file from time to time with our regulators that disclose risks and uncertainties that may affect our business. We expressly disclaim a duty to provide updates to these forward-looking statements, and the estimates and assumptions associated with them, after the date of this report, to reflect events or changes in circumstances or changes in expectations or the occurrence of anticipated events, whether as a result of new information, future events or otherwise, except as required by applicable law or stock exchange regulations.



15 Ericsson \| Second quarter report 2025. July 15, 2025.		Forward-looking statements

Financial statements and other information

Contents



Financial statements (unaudited)		17
Condensed consolidated income statement		17
Condensed statement of comprehensive income (loss)		17
Condensed consolidated balance sheet		18
Condensed consolidated statement of cash flows		19
Condensed consolidated statement of changes in equity		20
Condensed consolidated income statement – isolated quarters		20
Condensed consolidated statement of cash flows – isolated quarters		21
Condensed Parent Company income statement		22
Condensed Parent Company statement of comprehensive income (loss)		22
Condensed Parent Company balance sheet		23

Accounting policies and Explanatory notes (unaudited)		24
Note 1 – Accounting policies and Other changes		24
Note 2 – Segment information		25
Note 3 – Financial income and expenses, net		29
Note 4 – Provisions		30
Note 5 – Financial risk management		31
Note 6 – Cash flow		32
Note 7 – Contingent liabilities and Assets pledged as collateral		32
Note 8 – Share information		33
Note 9 – Employee information		33
Note 10 – Information on future divestment		34

Alternative performance measures (unaudited)		35
Sales growth adjusted for comparable units and currency		35
Items excluding restructuring charges and impairments of goodwill and intangible assets		36
EBITA and EBITA margin / Adjusted EBITA and EBITA margin		37
Rolling four quarters of net sales and adjusted EBITA margin (%)		37
Gross cash and net cash, end of period		38
Capital employed		38
Capital turnover		38
Return on capital employed		39
Equity ratio		39
Return on equity		39
Operating working capital		40
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)		40
Sales growth by segment adjusted for comparable units and currency		41
Sales growth by market area adjusted for comparable units and currency		41
Rolling four quarters of net sales by segment		41
Gross margin by segment by quarter		42
EBIT margin by segment by quarter		42
EBITA and EBITA margin by segment by quarter		43
Restructuring charges by function		44
Restructuring charges by segment		44
Adjusted gross income and gross margin by segment		45
Adjusted EBIT (loss) and EBIT margin by segment		46
Rolling four quarters of adjusted EBITA margin by segment (%)		46
Adjusted EBITA and EBITA margin by segment		47
Operating working capital days		47



16 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements and other information

Financial statements (unaudited)

Condensed consolidated income statement


			Q2									Jan-Jun
SEK million	Note		2025			2024			Change			2025			2024
Net sales		2		56,132			59,848			-6	%		111,157			113,173
Cost of sales				-29,483			-34,033			-13	%		-57,971			-64,700

Gross income		2		26,649			25,815			3	%		53,186			48,473

Research and development expenses ¹				-12,212			-14,926			-18	%		-24,244			-26,497
Selling and administrative expenses ¹				-8,180			-23,074			-65	%		-16,801			-31,765
Impairment losses on trade receivables				34			-84			-140	%		66			-341

Operating expenses				-20,358			-38,084			-47	%		-40,979			-58,603

Other operating income and expenses ²				67			-1,299			-105	%		75			676
Share of earnings of associated companies				33			49			-33	%		40			35

Earnings (loss) before financial items and income tax (EBIT)		2		6,391			-13,519			-147	%		12,322			-9,419
Financial income and expenses, net		3		34			-361			-109	%		-40			-832

Income (loss) after financial items				6,425			-13,880			-146	%		12,282			-10,251

Income tax				-1,799			2,881			-162	%		-3,439			1,865

Net income (loss)				4,626			-10,999			-142	%		8,843			-8,386

Net income (loss) attributable to:
Owners of the Parent Company				4,567			-11,132						8,716			-8,573
Non-controlling interests				59			133						127			187
Other information
Average number of shares, basic (million)		8		3,333			3,332						3,333			3,332
Earnings (loss) per share, basic (SEK) ³		8		1.37			-3.34						2.62			-2.57
Earnings (loss) per share, diluted (SEK) ³		8		1.37			-3.34						2.61			-2.57

¹⁾	Jan-Jun 2024 and Q2 2024 include an impairment of intangible assets, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and Income tax SEK 3.7 billion.

²⁾	Jan-Jun 2024 includes a goodwill impairment of SEK -1.3 billion reported in the second quarter, and a one-time gain of SEK 1.9 billion reported in the first quarter from the resolution of a commercial dispute.

³⁾	Based on net income attributable to owners of the Parent Company.

⁴⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share.

Condensed statement of comprehensive income (loss)


	Q2						Jan-Jun
SEK million	2025			2024			2025			2024
Net income (loss)		4,626			-10,999			8,843			-8,386
Other comprehensive income
*Items that will not be reclassified to profit or loss*
Remeasurements of defined benefit pension plans		-3,528			-4,916			-817			145
Revaluation of credit risk on borrowings		63			-221			91			-548
Tax on items that will not be reclassified to profit or loss		489			1,122			13			196
*Items that have been or may be reclassified to profit or loss*
Cash flow hedge reserve
Gains/losses arising during the period		1,726			298			4,655			-2,285
Reclassification adjustments on gains/losses included in profit or loss		29			214			322			254
Translation reserves
Changes in translation reserves		-2,282			-1,554			-9,898			4,520
Reclassification to profit or loss		54			-1			54			-104
Share of other comprehensive income of associated companies		-6			-10			-56			27
Tax on items that have been or may be reclassified to profit or loss		-361			-106			-1,025			418

Total other comprehensive income (loss), net of tax		-3,816			-5,174			-6,661			2,623

Total comprehensive income (loss)		810			-16,173			2,182			-5,763
Total comprehensive income (loss) attributable to:
Owners of the Parent Company		671			-16,307			1,886			-5,868
Non-controlling interests		139			134			296			105



17 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements

Condensed consolidated balance sheet


			Jun 30			Dec 31
SEK million	Note		2025			2024
Assets
Non-current assets
Intangible assets
Capitalized development expenses				4,129			4,593
Goodwill				49,443			56,077
Customer relationships, IPR and other intangible assets				6,254			7,954
Property, plant and equipment				9,431			10,545
Right-of-use assets				5,695			6,487
Financial assets
Equity in associated companies				1,330			1,179
Other investments in shares and participations		5		1,807			2,029
Customer finance, non-current		5		78			190
Interest-bearing securities, non-current		5		32,859			19,440
Other financial assets, non-current		5		5,235			5,161
Deferred tax assets				22,816			24,412

				139,077			138,067

Current assets
Inventories				27,068			27,125
Contract assets				6,618			6,924
Trade receivables		5		39,107			44,151
Customer finance, current		5		1,879			4,332
Current tax assets				5,019			6,083
Other current receivables				11,377			9,261
Interest-bearing securities, current		5		6,790			12,546
Cash and cash equivalents		5		33,620			43,885

				131,478			154,307

Total assets				270,555			292,374

Equity and liabilities
Equity
Stockholders’ equity				86,748			94,284
Non-controlling interest in equity of subsidiaries				-1,049			-1,301

				85,699			92,983

Non-current liabilities
Post-employment benefits				24,883			24,448
Provisions, non-current		4		2,365			3,511
Deferred tax liabilities				1,390			1,295
Borrowings, non-current		5		29,944			31,904
Lease liabilities, non-current				4,661			5,363
Other non-current liabilities				870			996

				64,113			67,517

Current liabilities
Provisions, current		4		6,287			8,204
Borrowings, current		5		7,285			6,137
Lease liabilities, current				1,867			2,132
Contract liabilities				44,370			41,229
Trade payables		5		24,804			30,173
Current tax liabilities				3,609			3,322
Other current liabilities				32,521			40,677

				120,743			131,874

Total equity and liabilities				270,555			292,374



18 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements

Condensed consolidated statement of cash flows


			Q2						Jan-Jun
SEK million	Note		2025			2024			2025			2024
Operating activities
Net income (loss)				4,626			-10,999			8,843			-8,386
Adjustments for
Taxes				1,949			-2,693			3,703			-1,420
Earnings/dividends in associated companies				-22			-41			-20			-38
Depreciation, amortization and impairment losses		6		2,177			18,015			4,927			20,627
Other				-410			424			-295			764

				8,320			4,706			17,158			11,547

Changes in operating net assets
Inventories				210			3,239			-2,058			5,974
Customer finance, current and non-current				391			-365			2,255			1,769
Trade receivables and contract assets				188			1,857			-124			2,093
Trade payables				-636			1,941			-2,208			-2,081
Provisions and post-employment benefits				-298			304			-2,613			-1,966
Contract liabilities				-1,329			-1,398			7,267			5,122
Other operating assets and liabilities, net				-1,187			890			-8,017			-3,710

				-2,661			6,468			-5,498			7,201

Interest received				458			385			1,134			776
Interest paid				-699			-677			-1,470			-1,974
Taxes paid				-1,268			-1,606			-2,816			-3,199

Cash flow from operating activities				4,150			9,276			8,508			14,351

Investing activities
Investments in property, plant and equipment		6		-561			-699			-1,290			-1,133
Sales of property, plant and equipment				40			42			79			66
Acquisitions/divestments of subsidiaries and other operations, net				141			-48			137			-154
Product development		6		-193			-327			-500			-713
Purchase of interest-bearing securities				-12,295			-5,845			-18,815			-7,463
Sales of interest-bearing securities				2,568			1,501			8,272			3,705
Other investing activities				-562			-611			2,560			-1,636

Cash flow from investing activities				-10,862			-5,987			-9,557			-7,328

Financing activities
Proceeds from issuance of borrowings				198			2			198			1,969
Repayment of borrowings				-432			-16			-511			-10,417
Dividends paid				-4,810			-4,711			-4,810			-4,711
Repayment of lease liabilities				-554			-658			-1,147			-1,259
Other financing activities				2,127			-313			2,067			225

Cash flow from financing activities				-3,471			-5,696			-4,203			-14,193

Effect of exchange rate changes on cash				-787			-705			-5,013			716

Net change in cash and cash equivalents				-10,970			-3,112			-10,265			-6,454

Cash and cash equivalents, beginning of period				44,590			31,848			43,885			35,190

Cash and cash equivalents, end of period				33,620			28,736			33,620			28,736



19 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements

Condensed consolidated statement of changes in equity


	Jan-Jun
SEK million	2025			2024
Opening balance		92,983			97,408
Total comprehensive income (loss)		2,182			-5,763
Sale/repurchase of own shares		-116			-21
Share issue, net		116			21
Long-term variable compensation plans		77			31
Dividends to shareholders ¹⁾		-9,543			-9,209

Closing balance		85,699			82,467

¹⁾	Jan-Jun includes SEK 4,769 (4,498) million of dividend approved by the Annual General Meeting on March 25, 2025, which will be paid out in October 2025.

Condensed consolidated income statement – isolated quarters


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
Cost of sales		-29,483			-28,488			-40,206			-33,609			-34,033			-30,667

Gross income		26,649			26,537			32,707			28,185			25,815			22,658

Research and development expenses ¹⁾		-12,212			-12,032			-13,877			-13,140			-14,926			-11,571
Selling and administrative expenses ¹⁾		-8,180			-8,621			-10,512			-9,380			-23,074			-8,691
Impairment losses on trade receivables		34			32			-2			78			-84			-257

Operating expenses		-20,358			-20,621			-24,391			-22,442			-38,084			-20,519

Other operating income and expenses ²⁾		67			8			-50			4			-1,299			1,975
Share of earnings of associated companies		33			7			-308			27			49			-14

Earnings (loss) before financial items and income tax (EBIT)		6,391			5,931			7,958			5,774			-13,519			4,100

Financial income and expenses, net		34			-74			-391			-501			-361			-471

Income (loss) after financial items		6,425			5,857			7,567			5,273			-13,880			3,629

Income tax ¹⁾		-1,799			-1,640			-2,688			-1,392			2,881			-1,016

Net income (loss)		4,626			4,217			4,879			3,881			-10,999			2,613

Net income (loss) attributable to:
Owners of the Parent Company		4,567			4,149			4,779			3,814			-11,132			2,559
Non-controlling interests		59			68			100			67			133			54
Other information
Average number of shares, basic (million)		3,333			3,333			3,333			3,333			3,332			3,331
Earnings (loss) per share, basic (SEK) ³⁾ ⁴⁾		1.37			1.25			1.44			1.14			-3.34			0.77
Earnings (loss) per share, diluted (SEK) ³⁾		1.37			1.24			1.44			1.14			-3.34			0.77

¹⁾	Q2 2024 includes an impairment of intangible assets, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and income tax SEK 3.7 billion.

²⁾	Q2 2024 includes a goodwill impairment of SEK -1.3 billion. Q1 2024 includes a one-time gain of SEK 1.9 billion from the resolution of a commercial dispute.

³⁾	Based on net income attributable to owners of the Parent Company.

⁴⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.



20 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements

Condensed consolidated statement of cash flows – isolated quarters


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Operating activities
Net income (loss)		4,626			4,217			4,879			3,881			-10,999			2,613
Adjustments for
Taxes		1,949			1,754			2,563			1,397			-2,693			1,273
Earnings/dividends in associated companies		-22			2			387			110			-41			3
Depreciation, amortization and impairment losses		2,177			2,750			2,815			2,292			18,015			2,612
Other		-410			115			528			592			424			340

		8,320			8,838			11,172			8,272			4,706			6,841

Changes in operating net assets
Inventories		210			-2,268			2,876			1,358			3,239			2,735
Customer finance, current and non-current		391			1,864			-225			1,211			-365			2,134
Trade receivables and contract assets		188			-312			-3,041			3,524			1,857			236
Trade payables		-636			-1,572			2,580			-3			1,941			-4,022
Provisions and post-employment benefits		-298			-2,315			958			955			304			-2,270
Contract liabilities		-1,329			8,596			-407			-117			-1,398			6,520
Other operating assets and liabilities, net		-1,187			-6,830			5,088			859			890			-4,600

		-2,661			-2,837			7,829			7,787			6,468			733
Interest received		458			676			518			506			385			391
Interest paid		-699			-771			-543			-526			-677			-1,297
Taxes paid		-1,268			-1,548			-1,463			-1,642			-1,606			-1,593

Cash flow from operating activities		4,150			4,358			17,513			14,397			9,276			5,075

Investing activities
Investments in property, plant and equipment		-561			-729			-667			-540			-699			-434
Sales of property, plant and equipment		40			39			14			36			42			24
Acquisitions/divestments of subs. and other operations, net		141			-4			-95			-62			-48			-106
Product development		-193			-307			-323			-264			-327			-386
Purchase of interest-bearing securities		-12,295			-6,520			-6,642			-5,517			-5,845			-1,618
Sales of interest-bearing securities		2,568			5,704			2,605			4,937			1,501			2,204
Other investing activities		-562			3,122			-3,219			1,113			-611			-1,025

Cash flow from investing activities		-10,862			1,305			-8,327			-297			-5,987			-1,341

Financing activities
Proceeds from issuance of borrowings		198			—			485			1,161			2			1,967
Repayment of borrowings		-432			-79			-373			-5,127			-16			-10,401
Dividends paid		-4,810			—			-4,514			-8			-4,711			—
Repayment of lease liabilities		-554			-593			-626			-607			-658			-601
Other financing activities		2,127			-60			-419			356			-313			538

Cash flow from financing activities		-3,471			-732			-5,447			-4,225			-5,696			-8,497

Effect of exchange rate changes on cash		-787			-4,226			2,823			-1,288			-705			1,421

Net change in cash and cash equivalents		-10,970			705			6,562			8,587			-3,112			-3,342

Cash and cash equivalents, beginning of period		44,590			43,885			37,323			28,736			31,848			35,190

Cash and cash equivalents, end of period		33,620			44,590			43,885			37,323			28,736			31,848



21 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements

Condensed Parent Company income statement

Jan-Jun

SEK million

2025

2024

2025

2024

Net sales

—

Cost of sales

—

Gross income

 

—

 

—

 

—

 

—

 

Operating expenses

-429

-361

-866

-731

Other operating income and expenses

659

840

1,316

3,498

EBIT

 

230

 

479

 

450

 

2,767

 

Financial net

18,792

-10,260

18,854

-9,903

Income (loss) after financial items

 

19,022

 

-9,781

 

19,304

 

-7,136

 

Transfers to (-) / from untaxed reserves

—

Income tax

-110

-56

-179

-509

Net income (loss)

 

18,912

 

-9,837

 

19,125

 

-7,645

 

Condensed Parent Company statement of comprehensive income (loss)

Jan-Jun

SEK million

2025

2024

2025

2024

Net income (loss)

 

18,912

 

-9,837

 

19,125

 

-7,645

 

Other comprehensive income (loss), net of tax

 

—

 

—

 

—

 

—

 

Total comprehensive income (loss)

 

18,912

 

-9,837

 

19,125

 

-7,645

 



22 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements

Condensed Parent Company balance sheet


SEK million	Jun 30 2025			Dec 31 2024
Assets
Fixed assets
Intangible assets		151			160
Tangible assets		268			295
Financial assets ¹⁾		133,524			121,721

		133,943			122,176

Current assets
Receivables		19,466			19,876
Short-term investments		6,719			12,222
Cash and cash equivalents		20,546			27,073

		46,731			59,171

Total assets		180,674			181,347

Stockholders’ equity, provisions and liabilities
Equity
Restricted equity		48,351			48,235
Non-restricted equity		31,853			22,335

		80,204			70,570

Provisions		204			144
Non-current liabilities		29,950			31,884
Current liabilities		70,316			78,749

Total stockholders’ equity, provisions and liabilities		180,674			181,347

¹⁾ Of which interest-bearing securities, non-current	* *	38,859	* *	* *	19,439	* *



23 Ericsson \| Second quarter report 2025. July 15, 2025.		Financial statements

Accounting policies and Explanatory notes (unaudited)

Note 1 – Accounting policies and Other changes

Accounting policies

The Group

This condensed consolidated interim financial report for the reporting period ended June 30, 2025, has been prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting”. The term “IFRS” used in this document refers to the application of IAS and IFRS as well as interpretations of these standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended December 31, 2024, and should be read in conjunction with that annual report. Amendments to IFRS standards that became effective during 2025 do not have a material impact on the result and financial position of the Company.

Changes applied from Q1 2025

New market area structure implemented in Q1 2025

On February 25, 2025, it was announced that effective March 15, 2025, two new market areas are created – market area Americas and market area Europe, Middle East and Africa. This is done by merging market area Europe and Latin America, market area North America, and market area Middle East and Africa. From Q1 2025 the following market area structure is presented:

•

Americas

•

Europe, Middle East and Africa

•

South East Asia, Oceania and India

•

North East Asia

The financial reporting by market areas is reflecting the new structure and prior quarters have been restated accordingly.

Updated definitions of Alternative performance measures (APMs)

Starting from Q1 2025 the Company has decided to update the definitions of the following APMs. The Company believes the updated definitions better reflect the underlying results of the Company’s operations over time.

•

Return on capital employed (ROCE)

•

Capital turnover (CTO)

•

Inventory turnover days (ITO)

•

Days sales outstanding (DSO)

•

Days payables outstanding (DPO)

•

Operating working capital days

The APMs are now based on a rolling average rather than an average of the beginning and the end of the period. Prior periods have been updated accordingly. In addition, Operating working capital has been added as an APM. For more information, see the APM section in this report.



24 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Note 2 – Segment information

Net sales by segment by quarter

2025

2024

Isolated quarters, SEK million

Networks

35,747

35,643

46,797

40,016

37,679

33,715

Of which Products

 

27,622

 

28,060

 

36,592

 

31,242

 

28,583

 

25,397

 

Of which Services

 

8,125

 

7,583

 

10,205

 

8,774

 

9,096

 

8,318

 

Cloud Software and Services

14,363

12,975

19,457

14,953

15,180

13,045

Of which Products

 

5,407

 

4,719

 

7,826

 

5,240

 

4,814

 

4,529

 

Of which Services

 

8,956

 

8,256

 

11,631

 

9,713

 

10,366

 

8,516

 

Enterprise

5,548

5,933

6,090

6,319

6,484

5,970

Other

474

569

506

505

595

Total

 

56,132

 

55,025

 

72,913

 

61,794

 

59,848

 

53,325

 

2025

2024

Sequential change, percent

Networks

-24

-25

Of which Products

 

-2

% 

 

-23

% 

 

% 

 

% 

 

% 

 

-27

% 

Of which Services

 

% 

 

-26

% 

 

% 

 

-4

% 

 

% 

 

-19

% 

Cloud Software and Services

-33

-1

-33

Of which Products

 

% 

 

-40

% 

 

% 

 

% 

 

% 

 

-36

% 

Of which Services

 

% 

 

-29

% 

 

% 

 

-6

% 

 

% 

 

-32

% 

Enterprise

-6

-3

-4

-3

-11

Other

-17

-15

-5

Total

 

% 

 

-25

% 

 

% 

 

% 

 

% 

 

-26

% 

2025

2024

Year over year change, percent

Networks

-5

-4

-11

-21

Of which Products

 

-3

% 

 

% 

 

% 

 

-2

% 

 

-13

% 

 

-21

% 

Of which Services

 

-11

% 

 

-9

% 

 

-1

% 

 

-10

% 

 

-6

% 

 

-19

% 

Cloud Software and Services

-5

-1

-4

-3

Of which Products

 

% 

 

% 

 

% 

 

% 

 

-7

% 

 

% 

Of which Services

 

-14

% 

 

-3

% 

 

-7

% 

 

-8

% 

 

% 

 

-5

% 

Enterprise

-14

-1

-9

-5

Other

-6

-20

-9

-28

-2

-14

Total

 

-6

% 

 

% 

 

% 

 

-4

% 

 

-7

% 

 

-15

% 

2025

2024

Year to date, SEK million

Jan-Jun

Jan-Mar

Jan-Dec

Jan-Sep

Jan-Jun

Jan-Mar

Networks

71,390

35,643

158,207

111,410

71,394

33,715

Of which Products

 

55,682

 

28,060

 

121,814

 

85,222

 

53,980

 

25,397

 

Of which Services

 

15,708

 

7,583

 

36,393

 

26,188

 

17,414

 

8,318

 

Cloud Software and Services

27,338

12,975

62,635

43,178

28,225

13,045

Of which Products

 

10,126

 

4,719

 

22,409

 

14,583

 

9,343

 

4,529

 

Of which Services

 

17,212

 

8,256

 

40,226

 

28,595

 

18,882

 

8,516

 

Enterprise

11,481

5,933

24,863

18,773

12,454

5,970

Other

948

474

2,175

1,606

1,100

595

Total

 

111,157

 

55,025

 

247,880

 

174,967

 

113,173

 

53,325

 

2025

2024

Year over year change, percent

Jan-Jun

Jan-Mar

Jan-Dec

Jan-Sep

Jan-Jun

Jan-Mar

Networks

-8

-12

-16

-21

Of which Products

 

% 

 

% 

 

-7

% 

 

-12

% 

 

-17

% 

 

-21

% 

Of which Services

 

-10

% 

 

-9

% 

 

-9

% 

 

-12

% 

 

-13

% 

 

-19

% 

Cloud Software and Services

-3

-1

-2

-1

-3

Of which Products

 

% 

 

% 

 

% 

 

% 

 

-3

% 

 

% 

Of which Services

 

-9

% 

 

-3

% 

 

-4

% 

 

-3

% 

 

% 

 

-5

% 

Enterprise

-8

-1

-3

-1

Other

-14

-20

-14

-16

-9

-14

Total

 

-2

% 

 

% 

 

-6

% 

 

-9

% 

 

-11

% 

 

-15

% 



25 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Gross income by segment by quarter


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Networks		17,638			18,112			22,326			19,332			17,139			14,851
Cloud Software and Services		5,964			5,069			7,243			5,537			5,407			4,834
Enterprise		3,045			3,338			3,306			3,307			3,310			2,865
Other		2			18			-168			9			-41			108

Total		26,649			26,537			32,707			28,185			25,815			22,658


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		35,750			18,112			73,648			51,322			31,990			14,851
Cloud Software and Services		11,033			5,069			23,021			15,778			10,241			4,834
Enterprise		6,383			3,338			12,788			9,482			6,175			2,865
Other		20			18			-92			76			67			108

Total		53,186			26,537			109,365			76,658			48,473			22,658

EBIT (loss) by segment by quarter


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Networks		6,376			7,040			9,267			7,492			4,750			4,156
Cloud Software and Services		840			71			1,099			-443			-728			-363
Enterprise		-870			-1,014			-1,876			-1,201			-17,424			-1,582
Other		45			-166			-532			-74			-117			1,889

Total		6,391			5,931			7,958			5,774			-13,519			4,100


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		13,416			7,040			25,665			16,398			8,906			4,156
Cloud Software and Services		911			71			-435			-1,534			-1,091			-363
Enterprise		-1,884			-1,014			-22,083			-20,207			-19,006			-1,582
Other		-121			-166			1,166			1,698			1,772			1,889

Total		12,322			5,931			4,313			-3,645			-9,419			4,100



26 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Net sales by market area by quarter


	2025						2024 ³⁾
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Americas		19,760			20,762			25,737			23,366			19,838			16,449
Europe, Middle East and Africa ¹⁾ ²⁾		16,193			14,475			21,865			16,893			17,265			15,287
South East Asia, Oceania and India		5,505			7,226			8,449			7,702			7,694			8,565
North East Asia		3,766			3,215			7,090			3,686			4,561			3,424
Other ¹⁾ ²⁾		10,908			9,347			9,772			10,147			10,490			9,600

Total		56,132			55,025			72,913			61,794			59,848			53,325

¹⁾ Of which in Sweden	* *	686	* *	* *	461	* *	* *	597	* *	* *	432	* *	* *	583	* *	* *	729	* *
²⁾ Of which in EU	* *	8,223	* *	* *	7,566	* *	* *	10,935	* *	* *	8,157	* *	* *	8,606	* *	* *	7,566	* *

	2025						2024 ³⁾
Sequential change, percent	Q2			Q1			Q4			Q3			Q2			Q1
Americas		-5	%		-19	%		10	%		18	%		21	%		-12	%
Europe, Middle East and Africa ¹⁾ ²⁾		12	%		-34	%		29	%		-2	%		13	%		-33	%
South East Asia, Oceania and India		-24	%		-14	%		10	%		0	%		-10	%		-27	%
North East Asia		17	%		-55	%		92	%		-19	%		33	%		-62	%
Other ¹⁾ ²⁾		17	%		-4	%		-4	%		-3	%		9	%		-1	%

Total		2	%		-25	%		18	%		3	%		12	%		-26	%

¹⁾ Of which in Sweden	* *	49	%	* *	-23	%	* *	38	%	* *	-26	%	* *	-20	%	* *	115	%
²⁾ Of which in EU	* *	9	%	* *	-31	%	* *	34	%	* *	-5	%	* *	14	%	* *	-25	%

	2025						2024 ³⁾
Year over year change, percent	Q2			Q1			Q4			Q3			Q2			Q1
Americas		0	%		26	%		38	%		37	%		11	%		-17	%
Europe, Middle East and Africa ¹⁾ ²⁾		-6	%		-5	%		-4	%		-8	%		-3	%		-1	%
South East Asia, Oceania and India		-28	%		-16	%		-28	%		-44	%		-44	%		-38	%
North East Asia		-17	%		-6	%		-22	%		-31	%		-10	%		-22	%
Other ¹⁾ ²⁾		4	%		-3	%		1	%		1	%		6	%		6	%

Total		-6	%		3	%		1	%		-4	%		-7	%		-15	%

¹⁾ Of which in Sweden	* *	18	%	* *	-37	%	* *	76	%	* *	-5	%	* *	58	%	* *	19	%
²⁾ Of which in EU	* *	-4	%	* *	0	%	* *	8	%	* *	4	%	* *	7	%	* *	-8	%

	2025						2024 ³⁾
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Americas		40,522			20,762			85,390			59,653			36,287			16,449
Europe, Middle East and Africa ¹⁾ ²⁾		30,668			14,475			71,310			49,445			32,552			15,287
South East Asia, Oceania and India		12,731			7,226			32,410			23,961			16,259			8,565
North East Asia		6,981			3,215			18,761			11,671			7,985			3,424
Other ¹⁾ ²⁾		20,255			9,347			40,009			30,237			20,090			9,600

Total		111,157			55,025			247,880			174,967			113,173			53,325

¹⁾ Of which in Sweden	* *	1,147	* *	* *	461	* *	* *	2,341	* *	* *	1,744	* *	* *	1,312	* *	* *	729	* *
²⁾ Of which in EU	* *	15,789	* *	* *	7,566	* *	* *	35,264	* *	* *	24,329	* *	* *	16,172	* *	* *	7,566	* *

	2025						2024 ³⁾
Year to date, year over year change, percent	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Americas		12	%		26	%		16	%		9	%		-4	%		-17	%
Europe, Middle East and Africa ¹⁾ ²⁾		-6	%		-5	%		-4	%		-4	%		-2	%		-1	%
South East Asia, Oceania and India		-22	%		-16	%		-39	%		-42	%		-41	%		-38	%
North East Asia		-13	%		-6	%		-22	%		-21	%		-15	%		-22	%
Other ¹⁾ ²⁾		1	%		-3	%		4	%		4	%		6	%		6	%

Total		-2	%		3	%		-6	%		-9	%		-11	%		-15	%

¹⁾ Of which in Sweden	* *	-13	%	* *	-37	%	* *	32	%	* *	22	%	* *	34	%	* *	19	%
²⁾ Of which in EU	* *	-2	%	* *	0	%	* *	3	%	* *	1	%	* *	-1	%	* *	-8	%

³⁾	2024 has been restated to reflect the changes in the market area structure, see note 1 “Accounting policies and Other changes” for more information.



27 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Net sales by market area by segment


	Q2 2025															Jan-Jun 2025
SEK million	Networks			Cloud Software and Services			Enterprise			Other			Total			Networks			Cloud Software and Services			Enterprise			Other			Total
Americas		15,172			4,506			82			0			19,760			32,335			7,979			208			0			40,522
Europe, Middle East and Africa		9,808			6,164			221			0			16,193			18,092			12,116			460			0			30,668
South East Asia, Oceania and India		3,641			1,844			20			0			5,505			8,852			3,852			27			0			12,731
North East Asia		2,977			787			2			0			3,766			5,322			1,650			9			0			6,981
Other ¹⁾		4,149			1,062			5,223			474			10,908			6,789			1,741			10,777			948			20,255

Total		35,747			14,363			5,548			474			56,132			71,390			27,338			11,481			948			111,157

Share of total		64	%		26	%		10	%		0	%		100	%		64	%		25	%		10	%		1	%		100	%

¹⁾	Includes primarily IPR licensing revenues and a major part of segment Enterprise.


	Q2 2025
Sequential change, percent	Networks			Cloud Software and Services			Enterprise			Other			Total
Americas		-12	%		30	%		-35	%		-			-5	%
Europe, Middle East and Africa		18	%		4	%		-8	%		-			12	%
South East Asia, Oceania and India		-30	%		-8	%		186	%		-			-24	%
North East Asia		27	%		-9	%		-71	%		-			17	%
Other		57	%		56	%		-6	%		0	%		17	%

Total		0	%		11	%		-6	%		0	%		2	%


	Q2 2025															Jan-Jun 2025
Year over year change, percent	Networks			Cloud Software and Services			Enterprise			Other			Total			Networks			Cloud Software and Services			Enterprise			Other			Total
Americas		-1	%		4	%		-40	%		-			0	%		16	%		-3	%		3	%		-100	%		12	%
Europe, Middle East and Africa		-5	%		-7	%		-30	%		-100	%		-6	%		-8	%		-3	%		2	%		-100	%		-6	%
South East Asia, Oceania and India		-31	%		-24	%		233	%		-100	%		-28	%		-26	%		-9	%		69	%		-100	%		-22	%
North East Asia		-17	%		-14	%		100	%		-100	%		-17	%		-13	%		-9	%		50	%		-100	%		-13	%
Other		31	%		27	%		-13	%		0	%		4	%		16	%		14	%		-9	%		1	%		1	%

Total		-5	%		-5	%		-14	%		-6	%		-6	%		0	%		-3	%		-8	%		-14	%		-2	%



28 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Top 5 countries in sales


	2025						2024
Country, percentage of net sales^¹)	Q2			Q1			Q4			Q3			Q2			Q1
United States		44	%		45	%		39	%		44	%		38	%		37	%
India		4	%		7	%		4	%		5	%		6	%		10	%
United Kingdom		4	%		4	%		4	%		4	%		3	%		4	%
China		4	%		3	%		4	%		3	%		6	%		4	%
Japan		3	%		3	%		5	%		3	%		3	%		3	%


	2025						2024
Country, percentage of net sales^¹)	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
United States		44	%		45	%		40	%		40	%		38	%		37	%
India		6	%		7	%		6	%		7	%		8	%		10	%
United Kingdom		4	%		4	%		4	%		3	%		3	%		4	%
China		4	%		3	%		4	%		4	%		5	%		4	%
Japan		3	%		3	%		4	%		3	%		3	%		3	%

¹⁾	Based on Jan-June 2025. Includes IPR licensing revenues.

IPR licensing revenues by segment by quarter

2025

2024

Isolated quarters, SEK million

Networks

3,987

2,606

2,870

2,853

3,187

2,539

Cloud Software and Services

875

572

630

626

700

557

Total

 

4,862

 

3,178

 

3,500

 

3,479

 

3,887

 

3,096

 

2025

2024

Year to date, SEK million

Jan-Jun

Jan-Mar

Jan-Dec

Jan-Sep

Jan-Jun

Jan-Mar

Networks

6,593

2,606

11,449

8,579

5,726

2,539

Cloud Software and Services

1,447

572

2,513

1,883

1,257

557

Total

 

8,040

 

3,178

 

13,962

 

10,462

 

6,983

 

3,096

 

Note 3 – Financial income and expenses, net

Financial income and expenses, net


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Financial income		579			619			587			724			742			681
Financial expenses		-927			-805			-984			-991			-1,029			-1,099
Net foreign exchange gains/losses		382			112			6			-234			-74			-53

Total		34			-74			-391			-501			-361			-471


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Financial income		1,198			619			2,734			2,147			1,423			681
Financial expenses		-1,732			-805			-4,103			-3,119			-2,128			-1,099
Net foreign exchange gains/losses		494			112			-355			-361			-127			-53

Total		-40			-74			-1,724			-1,333			-832			-471



29 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Note 4 – Provisions

Provisions

2025

2024

Isolated quarters, SEK million

Opening balance

9,093

11,715

10,544

10,200

10,065

11,706

Additions

1,830

1,055

3,329

2,761

2,472

783

Utilization

-1,853

-3,009

-1,830

-1,872

-1,448

-2,140

Of which restructuring

 

-837

 

-1,201

 

-1,201

 

-1,286

 

-755

 

-932

 

Reversal of excess amounts

-273

-256

-651

-333

-411

-364

Reclassification, translation difference and other

-145

-412

323

-212

-478

Closing balance

 

8,652

 

9,093

 

11,715

 

10,544

 

10,200

 

10,065

 

Of which restructuring

 

2,429

 

2,720

 

3,872

 

3,897

 

3,757

 

2,953

 

2025

2024

Year to date, SEK million

Jan-Jun

Jan-Mar

Jan-Dec

Jan-Sep

Jan-Jun

Jan-Mar

Opening balance

11,715

11,706

Additions

2,885

1,055

9,345

6,016

3,255

783

Utilization

-4,862

-3,009

-7,290

-5,460

-3,588

-2,140

Of which restructuring

 

-2,038

 

-1,201

 

-4,174

 

-2,973

 

-1,687

 

-932

 

Reversal of excess amounts

-529

-256

-1,759

-1,108

-775

-364

Reclassification, translation difference and other

-557

-412

-287

-610

-398

Closing balance

 

8,652

 

9,093

 

11,715

 

10,544

 

10,200

 

10,065

 

Of which restructuring

 

2,429

 

2,720

 

3,872

 

3,897

 

3,757

 

2,953

 



30 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Note 5 – Financial risk management

There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2 and Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values of financial instruments are as follows:

Financial instruments


SEK billion	Jun 30 2025									Dec 31 2024
	Fair value hierarchy level									Fair value hierarchy level
	Carrying value			Level 1		Level 2		Level 3		Carrying value			Level 1		Level 2		Level 3
Assets at fair value through profit or loss
Customer finance ¹⁾		2.0			—		—		2.0		4.5			—		—		4.5
Interest-bearing securities		39.6			37.0		2.6		—		31.7			30.4		1.3		—
Cash equivalents ²⁾		19.2			0.2		19.0		—		24.3			0.3		24.0		—
Other financial assets		1.8			—		—		1.8		2.7			0.8		—		1.9
Other current assets		3.6			—		3.6		—		0.2			—		0.2		—
Assets at fair value through OCI
Trade receivables		39.1			—		—		39.1		44.2			—		—		44.2
Assets at amortized costs
Interest-bearing securities		0.1			—		—		—		0.3			—		—		—
Other financial assets		0.1			—		—		—		0.3			—		—		—

Total financial assets		105.5									108.2

Financial liabilities at designated FVTPL
Parent company borrowings		-33.2			-19.3		-13.9		—		-35.7			-19.7		-16.0		—
Financial liabilities at FVTPL
Other current liabilities		-0.1			—		-0.1		—		-3.3			—		-3.3		—
Liabilities at amortized cost
Trade payables		-24.8			—		—		—		-30.2			—		—		—
Borrowings		-4.0			—		—		—		-2.3			—		—		—

Total financial liabilities		-62.1									-71.5

¹⁾	Year to date movements of customer finance receivables are as follows: additions of SEK 6.5 billion, disposals and repayments of SEK 8.7 billion and revaluation loss of SEK 0.3 billion.

²⁾	Total Cash and cash equivalent is SEK 33.6 (43.9 on Dec 31, 2024) billion, of which SEK 19.2 (24.3 on Dec 31, 2024) billion relating to Cash equivalents are presented in the table above.

Exchange rates used in the consolidation


	Jan-Jun				Jan-Dec
	2025		2024		2024
SEK/EUR - closing rate		11.14		11.37		11.49
SEK/USD - closing rate		9.50		10.61		10.99



31 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Note 6 – Cash flow

Information on investments

Investments in assets subject to depreciation, amortization, impairment and write-downs


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Additions
Property, plant and equipment		561			729			667			540			699			434
Capitalized development expenses		193			307			323			264			327			386
IPR, brands and other intangible assets		301			57			93			78			45			1

Total		1,055			1,093			1,083			882			1,071			821

Depreciation, amortization and impairment losses
Property, plant and equipment		826			1,029			1,117			924			1,161			941
Capitalized development expenses		451			444			409			410			349			312
Goodwill, IPR, brands and other intangible assets		373			721			666			429			15,945			793
Right-of-use assets		527			556			623			529			560			566

Total		2,177			2,750			2,815			2,292			18,015			2,612


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Additions
Property, plant and equipment		1,290			729			2,340			1,673			1,133			434
Capitalized development expenses		500			307			1,300			977			713			386
IPR, brands and other intangible assets		358			57			217			124			46			1

Total		2,148			1,093			3,857			2,774			1,892			821

Depreciation, amortization and impairment losses
Property, plant and equipment		1,855			1,029			4,143			3,026			2,102			941
Capitalized development expenses		895			444			1,480			1,071			661			312
Goodwill, IPR, brands and other intangible assets		1,094			721			17,833			17,167			16,738			793
Right-of-use assets		1,083			556			2,278			1,655			1,126			566

Total		4,927			2,750			25,734			22,919			20,627			2,612

Note 7 – Contingent liabilities and Assets pledged as collateral

Contingent liabilities and Assets pledged as collateral


SEK million	Jun 30 2025		Dec 31 2024
Contingent liabilities		3,412		3,559
Assets pledged as collateral		9,209		9,438



32 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Note 8 – Share information

Number of shares and earnings per share


	Q2				Jan-Jun
	2025		2024		2025		2024
Number of shares, end of period (million)		3,371		3,348		3,371		3,348
Of which class A-shares (million)		262		262		262		262
Of which class B-shares (million)		3,110		3,086		3,110		3,086
Number of treasury shares, end of period (million)		38		16		38		16
Number of shares outstanding, basic, end of period (million)		3,333		3,333		3,333		3,333
Numbers of shares outstanding, diluted, end of period (million)		3,343		3,340		3,343		3,340
Average number of treasury shares (million)		31		14		23		14
Average number of shares outstanding, basic (million)		3,333		3,332		3,333		3,332
Average number of shares outstanding, diluted (million) ^¹)		3,343		3,339		3,342		3,339
Earnings (loss) per share, basic (SEK) ^²)		1.37		-3.34		2.62		-2.57
Earnings (loss) per share, diluted (SEK) ^¹)		1.37		-3.34		2.61		-2.57

¹⁾	Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.

²⁾	Based on net income attributable to owners of the Parent Company.

The AGM 2025 resolved to issue 23,100,000 Class C shares for the Long-Term Variable Compensation Programs LTV II 2025 and LTV 2024 for Ericsson’s executive team and other executives. In accordance with an authorization from the AGM, the Board of Directors resolved to repurchase the new issued shares, which were subsequently converted into Class B shares. The quotient value of the repurchased shares was SEK 5.00, totalling SEK 115.5 million.

The proposed dividend for 2024 of SEK 2.85 per share was approved by the AGM on March 25, 2025. The dividend will be paid in two installments. The first dividend payment of SEK 1.43 per share was made with the record date of March 27, 2025, with a payment date of April 1, 2025. The second dividend payment of SEK 1.42 per share will be made with the record date September 29, 2025, with an expected payment date of October 2, 2025.

Note 9 – Employee information

Number of employees

2025

2024 ²⁾

End of period

Jun 30

Mar 31

Dec 31

Sep 30

Jun 30

Mar 31

Americas

15,926

15,857

16,034

16,554

16,791

17,051

Europe, Middle East and Africa ¹⁾

40,413

40,677

41,387

41,993

43,017

42,989

South East Asia, Oceania and India

25,591

25,991

26,389

26,327

26,558

27,016

North East Asia

10,007

10,341

10,426

11,110

11,619

12,084

Total

 

91,937

 

92,866

 

94,236

 

95,984

 

97,985

 

99,140

 

^¹) Of which in Sweden

 

13,476

 

13,222

 

13,420

 

13,633

 

14,109

 

13,849

 

²⁾	2024 has been restated to reflect the changes in the market area structure, see note 1 “Accounting policies and Other changes” for more information.



33 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Note 10 – Information on future divestment

In 2024 the Company entered into a binding agreement in relation to the sale of iconectiv, which is an acquired US subsidiary (83.3% ownership) forming part of Segment Enterprise and is a provider of network number portability solutions and data exchange services. The sale, which is subject to the customary closing conditions including regulatory approvals, is expected to be completed during Q3 2025. The assets and liabilities for iconectiv, which are included in the consolidated balance sheet, are shown in the table below.


	Jun 2025
Goodwill		1,042
Customer relationships, IPR and other intangible assets		71
Property, plant and equipment		154
Right-of-use assets		130
Trade receivables		316
Cash and cash equivalents		496
Other assets		188

Total assets		2,397


Lease liabilities		143
Contract liabilities		387
Current tax liabilities		208

Other liabilities		248

Total liabilities		986



34 Ericsson \| Second quarter report 2025. July 15, 2025.		Accounting policies and Explanatory notes

Alternative performance measures (unaudited)

In this section, the Company presents its Alternative Performance Measures (APMs), which are not recognized measures of financial performance under IFRS. The presentation of APMs has limitations as analytical tools and should not be considered in isolation or as a substitute for related financial measures prepared in accordance with IFRS.

APMs are presented to enhance an investor’s evaluation of ongoing operating results, to aid in forecasting future periods and to facilitate meaningful comparison of results between periods.

Management uses these APMs to, among other things, evaluate ongoing operations in relation to historical results, for internal planning and forecasting purposes and in the calculation of certain performance-based compensation. APMs should not be viewed as substitutes for income statement or cash flow items computed in accordance with IFRS.

This section also includes a reconciliation of the APMs to the most directly reconcilable line items in the financial statements. For more information about non-IFRS key operating measures, see Ericsson Annual Report 2024.

From Q1 2025, the definition of Return on capital employed (ROCE) and Capital turnover (CTO) have been updated and is based on a rolling average rather than an average of the beginning and the end of the period. Prior periods have been updated accordingly. Operating working capital has been added as an APM.

From Q1 2025, the definitions of Inventory turnover days (ITO), Days sales outstanding (DSO), Days payables outstanding (DPO) and Operating working capital days have been updated and can be found in the end of this report. Prior periods have been updated accordingly.

The Company believes the updated definitions better reflect the underlying results of the Company’s operations over time.

Sales growth adjusted for comparable units and currency

Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also named organic sales growth.


	2025						2024
Isolated quarters, year over year change	Q2			Q1			Q4			Q3			Q2			Q1
Reported net sales		56,132			55,025			72,913			61,794			59,848			53,325
Acquired business		—			—			—			—			—			—
Net FX impact		4,672			-1,817			683			1,832			22			740
Comparable net sales, excluding FX impact		60,804			53,208			73,596			63,626			59,870			54,065
Comparable quarter net sales adj. for acq/div business		59,848			53,325			71,881			64,473			64,444			62,553
Organic sales growth (%)		2	%		0	%		2	%		-1	%		-7	%		-14	%

	2025						2024
Year to date, year over year change	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Reported net sales		111,157			55,025			247,880			174,967			113,173			53,325
Acquired business		—			—			—			—			—			—
Net FX impact		2,855			-1,817			3,277			2,594			762			740
Comparable net sales, excluding FX impact		114,012			53,208			251,157			177,561			113,935			54,065
Comparable quarter net sales adj. for acq/div business		113,173			53,325			263,351			191,470			126,997			62,553
Organic sales growth (%)		1	%		0	%		-5	%		-7	%		-10	%		-14	%



35 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Items excluding restructuring charges and impairments of goodwill and intangible assets

Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a percentage of net sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets.


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Gross income		26,649			26,537			32,707			28,185			25,815			22,658
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
Gross margin (%)		47.5	%		48.2	%		44.9	%		45.6	%		43.1	%		42.5	%

Gross income		26,649			26,537			32,707			28,185			25,815			22,658
Restructuring charges included in cost of sales		310			158			1,034			424			466			122
Adjusted gross income		26,959			26,695			33,741			28,609			26,281			22,780
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
Adjusted gross margin (%)		48.0	%		48.5	%		46.3	%		46.3	%		43.9	%		42.7	%

Operating expenses		-20,358			-20,621			-24,391			-22,442			-38,084			-20,519
Restructuring charges included in R&D expenses		300			20			358			966			805			-10
Restructuring charges included in selling and administrative expenses		46			103			234			163			357			93
Operating expenses excluding restructuring charges		-20,012			-20,498			-23,799			-21,313			-36,922			-20,436

EBIT (loss)		6,391			5,931			7,958			5,774			-13,519			4,100
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
EBIT margin (%)		11.4	%		10.8	%		10.9	%		9.3	%		-22.6	%		7.7	%

EBIT (loss)		6,391			5,931			7,958			5,774			-13,519			4,100
Total restructuring charges		656			281			1,626			1,553			1,628			205
Adjusted EBIT (loss)		7,047			6,212			9,584			7,327			-11,891			4,305
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
Adjusted EBIT margin (%)		12.6	%		11.3	%		13.1	%		11.9	%		-19.9	%		8.1	%
Adjusted EBIT (loss)		7,047			6,212			9,584			7,327			-11,891			4,305
Impairment of goodwill and intangible assets		—			—			213			—			15,120			—
Adjusted EBIT excluding impairments of goodwill and intangible assets		7,047			6,212			9,797			7,327			3,229			4,305
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)		12.6	%		11.3	%		13.4	%		11.9	%		5.4	%		8.1	%

	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Gross income		53,186			26,537			109,365			76,658			48,473			22,658
Net sales		111,157			55,025			247,880			174,967			113,173			53,325
Gross margin (%)		47.8	%		48.2	%		44.1	%		43.8	%		42.8	%		42.5	%
Gross income		53,186			26,537			109,365			76,658			48,473			22,658
Restructuring charges included in cost of sales		468			158			2,046			1,012			588			122
Adjusted gross income		53,654			26,695			111,411			77,670			49,061			22,780
Net sales		111,157			55,025			247,880			174,967			113,173			53,325
Adjusted gross margin (%)		48.3	%		48.5	%		44.9	%		44.4	%		43.4	%		42.7	%
Operating expenses		-40,979			-20,621			-105,436			-81,045			-58,603			-20,519
Restructuring charges included in R&D expenses		320			20			2,119			1,761			795			-10
Restructuring charges included in selling and administrative expenses		149			103			847			613			450			93
Operating expenses excluding restructuring charges		-40,510			-20,498			-102,470			-78,671			-57,358			-20,436
EBIT (loss)		12,322			5,931			4,313			-3,645			-9,419			4,100
Net sales		111,157			55,025			247,880			174,967			113,173			53,325
EBIT margin (%)		11.1	%		10.8	%		1.7	%		-2.1	%		-8.3	%		7.7	%
EBIT (loss)		12,322			5,931			4,313			-3,645			-9,419			4,100
Total restructuring charges		937			281			5,012			3,386			1,833			205
Adjusted EBIT (loss)		13,259			6,212			9,325			-259			-7,586			4,305
Net sales		111,157			55,025			247,880			174,967			113,173			53,325
Adjusted EBIT margin (%)		11.9	%		11.3	%		3.8	%		-0.1	%		-6.7	%		8.1	%
Adjusted EBIT (loss)		13,259			6,212			9,325			-259			-7,586			4,305
Impairment of goodwill and intangible assets		—			—			15,333			15,120			15,120			—
Adjusted EBIT excluding impairments of goodwill and intangible assets		13,259			6,212			24,658			14,861			7,534			4,305
Net sales		111,157			55,025			247,880			174,967			113,173			53,325
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)		11.9	%		11.3	%		9.9	%		8.5	%		6.7	%		8.1	%



36 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

EBITA and EBITA margin / Adjusted EBITA and EBITA margin

Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a percentage of net sales.

Adjusted EBITA also expressed as a percentage of net sales.


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Net income (loss)		4,626			4,217			4,879			3,881			-10,999			2,613
Income tax		1,799			1,640			2,688			1,392			-2,881			1,016
Financial income and expenses, net		-34			74			391			501			361			471
Amortizations and write-downs of acquired intangibles		372			721			665			429			15,945			793
Of which segment Enterprise	* *	346	* *	* *	389	* *	* *	549	* *	* *	378	* *	* *	15,916	* *	* *	762	* *
EBITA		6,763			6,652			8,623			6,203			2,426			4,893
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
EBITA margin (%)		12.0	%		12.1	%		11.8	%		10.0	%		4.1	%		9.2	%
Restructuring charges		656			281			1,626			1,553			1,628			205
Adjusted EBITA		7,419			6,933			10,249			7,756			4,054			5,098
Adjusted EBITA margin (%)		13.2	%		12.6	%		14.1	%		12.6	%		6.8	%		9.6	%


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Net income (loss)		8,843			4,217			374			-4,505			-8,386			2,613
Income tax		3,439			1,640			2,215			-473			-1,865			1,016
Financial income and expenses, net		40			74			1,724			1,333			832			471
Amortizations and write-downs of acquired intangibles		1,093			721			17,832			17,167			16,738			793
Of which segment Enterprise	* *	735	* *	* *	389	* *	* *	17,605	* *	* *	17,056	* *	* *	16,678	* *	* *	762	* *
EBITA		13,415			6,652			22,145			13,522			7,319			4,893
Net sales		111,157			55,025			247,880			174,967			113,173			53,325
EBITA margin (%)		12.1	%		12.1	%		8.9	%		7.7	%		6.5	%		9.2	%
Restructuring charges		937			281			5,012			3,386			1,833			205
Adjusted EBITA		14,352			6,933			27,157			16,908			9,152			5,098
Adjusted EBITA margin (%)		12.9	%		12.6	%		11.0	%		9.7	%		8.1	%		9.6	%

Additionally, Ericsson provides forward-looking targets for adjusted EBITA margin and Free cash flow before M&A as a percentage of net sales, which are non-IFRS financial measures. Ericsson has not provided quantitative reconciliation of these targets to the most directly comparable IFRS measures because certain information needed to reconcile these non-IFRS financial measures to the most comparable IFRS financial measures are dependent on specific items or impacts that are not yet determined, are subject to incarcerating and variability in timing and amount due to their nature, are outside of Ericsson’s control or cannot be predicted, including items and impacts such as currency exchange rate changes, acquisitions and disposals, and charges such as impairments or acquisition related charges. Accordingly, reconciliation of these non-IFRS forward-looking financial measures are not available without unreasonable efforts. Such unavailable reconciling items could significantly impact our results of operations and financial condition.

Rolling four quarters of net sales and adjusted EBITA margin (%)

Net sales, EBITA margin and restructuring charges as a sum of last four quarters.


	2025						2024
Rolling four quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Net sales		245,864			249,580			247,880			246,848			249,527			254,123
EBITA		28,241			23,904			22,145			20,216			17,841			15,957
Restructuring charges		4,116			5,088			5,012			4,906			4,241			5,746
Adjusted EBITA		32,357			28,992			27,157			25,122			22,082			21,703
Adjusted EBITA margin (%)		13.2	%		11.6	%		11.0	%		10.2	%		8.8	%		8.5	%



37 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Gross cash and net cash, end of period

Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current).

Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-current).


	2025				2024
SEK million	Q2		Q1		Q4		Q3		Q2		Q1
Cash and cash equivalents		33,620		44,590		43,885		37,323		28,736		31,848
+ Interest-bearing securities, current		6,790		5,147		12,546		10,063		13,838		8,948
+ Interest-bearing securities, non-current		32,859		24,436		19,440		14,806		11,146		11,177
Gross cash, end of period		73,269		74,173		75,871		62,192		53,720		51,973
- Borrowings, current		7,285		5,597		6,137		3,134		8,067		8,491
- Borrowings, non-current		29,944		29,929		31,904		33,524		32,520		32,675
Net cash, end of period		36,040		38,647		37,830		25,534		13,133		10,807

Capital employed

Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities).


	2025				2024
SEK million	Q2		Q1		Q4		Q3		Q2		Q1
Total assets		270,555		277,978		292,374		272,450		278,486		299,523
Less: Non-interest-bearing provisions and liabilities
Provisions, non-current		2,365		2,541		3,511		3,036		2,642		3,952
Deferred tax liabilities		1,390		1,365		1,295		1,255		1,295		3,999
Other non-current liabilities		870		888		996		889		865		839
Provisions, current		6,287		6,552		8,204		7,508		7,558		6,113
Contract liabilities		44,370		46,757		41,229		39,540		40,704		42,538
Trade payables		24,804		26,450		30,173		25,888		26,731		25,305
Current tax liabilities		3,609		2,664		3,322		3,821		3,710		3,810
Other current liabilities		32,521		41,655		40,677		36,903		38,485		35,786
Capital employed		154,339		149,106		162,967		153,610		156,496		177,181

Capital turnover

Rolling four quarters of net sales divided by five-point average for capital employed.

The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section.


	2025				2024
SEK million	Q2		Q1		Q4		Q3		Q2		Q1
Net sales, rolling four quarters		245,864		249,580		247,880		246,848		249,527		254,123
Average capital employed, rolling five quarters
Capital employed at end of period -4		156,496		177,181		177,965		170,926		197,676		195,403
Capital employed at end of period -3		153,610		156,496		177,181		177,965		170,926		197,676
Capital employed at end of period -2		162,967		153,610		156,496		177,181		177,965		170,926
Capital employed at end of period -1		149,106		162,967		153,610		156,496		177,181		177,965
Capital employed at end of period		154,339		149,106		162,967		153,610		156,496		177,181
Average capital employed, rolling five quarters		155,304		159,872		165,644		167,236		176,049		183,830
Capital turnover (times)		1.6		1.6		1.5		1.5		1.4		1.4



38 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Return on capital employed

Rolling four quarters of EBIT divided by five-point average for capital employed.

The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section.


	2025						2024
SEK million	Q2			Q1			Q4			Q3			Q2			Q1
EBIT (loss), rolling four quarters		26,054			6,144			4,313			2,203			-32,479			-19,272
Average capital employed, rolling five quarters
Capital employed at end of period -4		156,496			177,181			177,965			170,926			197,676			195,403
Capital employed at end of period -3		153,610			156,496			177,181			177,965			170,926			197,676
Capital employed at end of period -2		162,967			153,610			156,496			177,181			177,965			170,926
Capital employed at end of period -1		149,106			162,967			153,610			156,496			177,181			177,965
Capital employed at end of period		154,339			149,106			162,967			153,610			156,496			177,181
Average capital employed, rolling five quarters		155,304			159,872			165,644			167,236			176,049			183,830
Return on capital employed (%)		16.8	%		3.8	%		2.6	%		1.3	%		-18.4	%		-10.5	%

Equity ratio

Equity expressed as a percentage of total assets.


	2025						2024
SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Total equity		85,699			84,858			92,983			85,355			82,467			107,639
Total assets		270,555			277,978			292,374			272,450			278,486			299,523
Equity ratio (%)		31.7	%		30.5	%		31.8	%		31.3	%		29.6	%		35.9	%

Return on equity

Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity.

Annualization factor of four is used for isolated quarter.

Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec.


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Net income (loss) attributable to owners of the Parent Company		4,567			4,149			4,779			3,814			-11,132			2,559
Annualized		18,268			16,596			19,116			15,256			-44,528			10,236
Average stockholders’ equity
Stockholders’ equity, beginning of period		86,039			94,284			86,630			83,840			109,137			98,673
Stockholders’ equity, end of period		86,748			86,039			94,284			86,630			83,840			109,137
Average stockholders’ equity		86,394			90,162			90,457			85,235			96,489			103,905
Return on equity (%)		21.1	%		18.4	%		21.1	%		17.9	%		-46.1	%		9.9	%

	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Net income (loss) attributable to owners of the Parent Company		8,716			4,149			20			-4,759			-8,573			2,559
Annualized		17,432			16,596			20			-6,345			-17,146			10,236
Average stockholders’ equity
Stockholders’ equity, beginning of period		94,284			94,284			98,673			98,673			98,673			98,673
Stockholders’ equity, end of period		86,748			86,039			94,284			86,630			83,840			109,137
Average stockholders’ equity		90,516			90,162			96,479			92,652			91,257			103,905
Return on equity (%)		19.3	%		18.4	%		0.0	%		-6.8	%		-18.8	%		9.9	%



39 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Operating working capital

Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid expenses less contract liabilities and trade payables.

Operating working capital is added from Q1 2025. Refer to the clarification provided at the beginning of the APM section.


	2025						2024
SEK million	Jun 30			Mar 31			Dec 31			Sep 30			Jun 30			Mar 31
Inventories		27,068			27,649			27,125			29,004			30,897			34,564
Contract assets		6,618			5,735			6,924			7,568			6,851			6,715
Trade receivables		39,107			41,428			44,151			38,018			43,578			46,246
Customer finance, current		1,879			2,396			4,332			3,843			4,590			3,717
Customer finance, non-current		78			27			190			221			843			1,406
Advance payments to suppliers ¹⁾		41			46			47			108			146			167
Prepaid expenses ¹⁾		3,025			3,749			2,659			2,737			3,244			3,501
Less: Contract liabilities		44,370			46,757			41,229			39,540			40,704			42,538
Less: Trade payables		24,804			26,450			30,173			25,888			26,731			25,305
Operating working capital		8,642			7,823			14,026			16,071			22,714			28,473

¹⁾	Part of Other current receivables in the consolidated balance sheet.

Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)

Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and repayment of lease liabilities.

Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of lease liabilities.

Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales.


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Cash flow from operating activities		4,150			4,358			17,513			14,397			9,276			5,075
Net capital expenditures and other investments (excl. M&A)
Investments in property, plant and equipment		-561			-729			-667			-540			-699			-434
Sales of property, plant and equipment		40			39			14			36			42			24
Product development		-193			-307			-323			-264			-327			-386
Other investments ¹⁾		-301			-64			-87			-78			-39			-7
Repayment of lease liabilities		-554			-593			-626			-607			-658			-601
Free cash flow before M&A		2,581			2,704			15,824			12,944			7,595			3,671
Acquisitions/divestments of subs and other operations, net		141			-4			-95			-62			-48			-106
Free cash flow after M&A		2,722			2,700			15,729			12,882			7,547			3,565
Net sales		56,132			55,025			72,913			61,794			59,848			53,325
Free cash flow before M&A (% of net sales)		4.6	%		4.9	%		21.7	%		20.9	%		12.7	%		6.9	%

	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Cash flow from operating activities		8,508			4,358			46,261			28,748			14,351			5,075
Net capital expenditures and other investments (excl. M&A)
Investments in property, plant and equipment		-1,290			-729			-2,340			-1,673			-1,133			-434
Sales of property, plant and equipment		79			39			116			102			66			24
Product development		-500			-307			-1,300			-977			-713			-386
Other investments ¹⁾		-365			-64			-211			-124			-46			-7
Repayment of lease liabilities		-1,147			-593			-2,492			-1,866			-1,259			-601
Free cash flow before M&A		5,285			2,704			40,034			24,210			11,266			3,671
Acquisitions/divestments of subs and other operations, net		137			-4			-311			-216			-154			-106
Free cash flow after M&A		5,422			2,700			39,723			23,994			11,112			3,565
Net sales		111,157			55,025			247,880			174,967			113,173			53,325
Free cash flow before M&A (% of net sales)		4.8	%		4.9	%		16.2	%		13.8	%		10.0	%		6.9	%

¹⁾	Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to be part of the definition of Free cash flow.



40 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Sales growth by segment adjusted for comparable units and currency


	2025						2024
Isolated quarter, year over year change, percent	Q2			Q1			Q4			Q3			Q2			Q1
Networks		3	%		3	%		5	%		-1	%		-11	%		-19	%
Cloud Software and Services		1	%		-3	%		0	%		-1	%		0	%		-2	%
Enterprise		-6	%		-7	%		-7	%		-3	%		0	%		1	%
Other		-1	%		-23	%		-10	%		-26	%		-5	%		-14	%

Total		2	%		0	%		2	%		-1	%		-7	%		-14	%


	2025						2024
Year to date, year over year change, percent	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		3	%		3	%		-6	%		-10	%		-15	%		-19	%
Cloud Software and Services		-1	%		-3	%		-1	%		-1	%		-1	%		-2	%
Enterprise		-6	%		-7	%		-2	%		-1	%		1	%		1	%
Other		-13	%		-23	%		-15	%		-16	%		-10	%		-14	%

Total		1	%		0	%		-5	%		-7	%		-10	%		-14	%

Sales growth by market area adjusted for comparable units and currency


	2025						2024 ¹⁾
Isolated quarter, year over year change, percent	Q2			Q1			Q4			Q3			Q2			Q1
Americas		10	%		20	%		40	%		42	%		10	%		-16	%
Europe, Middle East and Africa		-1	%		-7	%		-4	%		-6	%		-4	%		-1	%
South East Asia, Oceania and India		-22	%		-17	%		-28	%		-43	%		-44	%		-37	%
North East Asia		-15	%		-8	%		-22	%		-29	%		-3	%		-16	%
Other		15	%		-6	%		3	%		5	%		7	%		8	%

Total		2	%		0	%		2	%		-1	%		-7	%		-14	%


	2025						2024 ¹⁾
Year to date, year over year change, percent	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Americas		14	%		20	%		18	%		10	%		-4	%		-16	%
Europe, Middle East and Africa		-4	%		-7	%		-4	%		-4	%		-3	%		-1	%
South East Asia, Oceania and India		-19	%		-17	%		-38	%		-41	%		-41	%		-37	%
North East Asia		-12	%		-8	%		-19	%		-16	%		-9	%		-16	%
Other		5	%		-6	%		6	%		6	%		7	%		8	%

Total		1	%		0	%		-5	%		-7	%		-10	%		-14	%

¹⁾	2024 has been restated to reflect the changes in the market area structure, see note 1 “Accounting policies and Other changes” for more information.

Rolling four quarters of net sales by segment


	2025						2024
Rolling four quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Networks		158,203			160,135			158,207			156,408			157,929			162,690
Cloud Software and Services		61,748			62,565			62,635			62,736			63,347			63,275
Enterprise		23,890			24,826			24,863			25,471			25,825			25,720
Other		2,023			2,054			2,175			2,233			2,426			2,438

Total		245,864			249,580			247,880			246,848			249,527			254,123



41 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Gross margin by segment by quarter


	2025						2024
Isolated quarters, as percentage of net sales	Q2			Q1			Q4			Q3			Q2			Q1
Networks		49.3	%		50.8	%		47.7	%		48.3	%		45.5	%		44.0	%
Cloud Software and Services		41.5	%		39.1	%		37.2	%		37.0	%		35.6	%		37.1	%
Enterprise		54.9	%		56.3	%		54.3	%		52.3	%		51.0	%		48.0	%
Other		0.4	%		3.8	%		-29.5	%		1.8	%		-8.1	%		18.2	%

Total		47.5	%		48.2	%		44.9	%		45.6	%		43.1	%		42.5	%


	2025						2024
Year to date, as percentage of net sales	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		50.1	%		50.8	%		46.6	%		46.1	%		44.8	%		44.0	%
Cloud Software and Services		40.4	%		39.1	%		36.8	%		36.5	%		36.3	%		37.1	%
Enterprise		55.6	%		56.3	%		51.4	%		50.5	%		49.6	%		48.0	%
Other		2.1	%		3.8	%		-4.2	%		4.7	%		6.1	%		18.2	%

Total		47.8	%		48.2	%		44.1	%		43.8	%		42.8	%		42.5	%

EBIT margin by segment by quarter


	2025						2024
Isolated quarters, as percentage of net sales	Q2			Q1			Q4			Q3			Q2			Q1
Networks		17.8	%		19.8	%		19.8	%		18.7	%		12.6	%		12.3	%
Cloud Software and Services		5.8	%		0.5	%		5.6	%		-3.0	%		-4.8	%		-2.8	%
Enterprise		-15.7	%		-17.1	%		-30.8	%		-19.0	%		-268.7	%		-26.5	%
Other		9.5	%		-35.0	%		-93.5	%		-14.6	%		-23.2	%		317.5	%

Total		11.4	%		10.8	%		10.9	%		9.3	%		-22.6	%		7.7	%


	2025						2024
Year to date, as percentage of net sales	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		18.8	%		19.8	%		16.2	%		14.7	%		12.5	%		12.3	%
Cloud Software and Services		3.3	%		0.5	%		-0.7	%		-3.6	%		-3.9	%		-2.8	%
Enterprise		-16.4	%		-17.1	%		-88.8	%		-107.6	%		-152.6	%		-26.5	%
Other		-12.8	%		-35.0	%		53.6	%		105.7	%		161.1	%		317.5	%

Total		11.1	%		10.8	%		1.7	%		-2.1	%		-8.3	%		7.7	%



42 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

EBITA and EBITA margin by segment by quarter


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Networks		6,397			7,367			9,375			7,536			4,771			4,179
Cloud Software and Services		845			76			1,107			-436			-721			-355
Enterprise		-524			-625			-1,327			-823			-1,508			-820
Other		45			-166			-532			-74			-116			1,889

Total		6,763			6,652			8,623			6,203			2,426			4,893


	2025						2024
Isolated quarters, as percentage of net sales	Q2			Q1			Q4			Q3			Q2			Q1
Networks		17.9	%		20.7	%		20.0	%		18.8	%		12.7	%		12.4	%
Cloud Software and Services		5.9	%		0.6	%		5.7	%		-2.9	%		-4.7	%		-2.7	%
Enterprise		-9.4	%		-10.5	%		-21.8	%		-13.0	%		-23.3	%		-13.7	%
Other		9.5	%		-35.0	%		-93.5	%		-14.6	%		-23.0	%		317.5	%

Total		12.0	%		12.1	%		11.8	%		10.0	%		4.1	%		9.2	%


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		13,764			7,367			25,861			16,486			8,950			4,179
Cloud Software and Services		921			76			-405			-1,512			-1,076			-355
Enterprise		-1,149			-625			-4,478			-3,151			-2,328			-820
Other		-121			-166			1,167			1,699			1,773			1,889

Total		13,415			6,652			22,145			13,522			7,319			4,893


	2025						2024
Year to date, as percentage of net sales	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		19.3	%		20.7	%		16.3	%		14.8	%		12.5	%		12.4	%
Cloud Software and Services		3.4	%		0.6	%		-0.6	%		-3.5	%		-3.8	%		-2.7	%
Enterprise		-10.0	%		-10.5	%		-18.0	%		-16.8	%		-18.7	%		-13.7	%
Other		-12.8	%		-35.0	%		53.7	%		105.8	%		161.2	%		317.5	%

Total		12.1	%		12.1	%		8.9	%		7.7	%		6.5	%		9.2	%



43 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Restructuring charges by function


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Cost of sales		-310			-158			-1,034			-424			-466			-122
Research and development expenses		-300			-20			-358			-966			-805			10
Selling and administrative expenses		-46			-103			-234			-163			-357			-93

Total		-656			-281			-1,626			-1,553			-1,628			-205


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Cost of sales		-468			-158			-2,046			-1,012			-588			-122
Research and development expenses		-320			-20			-2,119			-1,761			-795			10
Selling and administrative expenses		-149			-103			-847			-613			-450			-93

Total		-937			-281			-5,012			-3,386			-1,833			-205

Restructuring charges by segment

2025

2024

Isolated quarters, SEK million

Networks

-109

-108

-738

-585

-481

-95

of which cost of sales

 

-67

 

-55

 

-645

 

-163

 

-214

 

-68

 

of which operating expenses

 

-42

 

-53

 

-93

 

-422

 

-267

 

-27

 

Cloud Software and Services

-538

-74

-695

-863

-816

-60

of which cost of sales

 

-243

 

-102

 

-348

 

-243

 

-246

 

-49

 

of which operating expenses

 

-295

 

-347

 

-620

 

-570

 

-11

 

Enterprise

-9

-97

-150

-38

-285

-38

of which cost of sales

 

-2

 

-1

 

-3

 

-5

 

of which operating expenses

 

-9

 

-98

 

-148

 

-37

 

-282

 

-33

 

Other

-2

-43

-67

-46

-12

of which cost of sales

 

-2

 

-39

 

-17

 

-3

 

of which operating expenses

 

-4

 

-50

 

-43

 

-12

 

Total

 

-656

 

-281

 

-1,626

 

-1,553

 

-1,628

 

-205

 

2025

2024

Year to date, SEK million

Jan-Jun

Jan-Mar

Jan-Dec

Jan-Sep

Jan-Jun

Jan-Mar

Networks

-217

-108

-1,899

-1,161

-576

-95

of which cost of sales

 

-122

 

-55

 

-1,090

 

-445

 

-282

 

-68

 

of which operating expenses

 

-95

 

-53

 

-809

 

-716

 

-294

 

-27

 

Cloud Software and Services

-612

-74

-2,434

-1,739

-876

-60

of which cost of sales

 

-345

 

-102

 

-886

 

-538

 

-295

 

-49

 

of which operating expenses

 

-267

 

-1,548

 

-1,201

 

-581

 

-11

 

Enterprise

-106

-97

-511

-361

-323

-38

of which cost of sales

 

-11

 

-9

 

-8

 

-5

 

of which operating expenses

 

-107

 

-98

 

-500

 

-352

 

-315

 

-33

 

Other

-2

-168

-125

-58

-12

of which cost of sales

 

-2

 

-2

 

-59

 

-20

 

-3

 

of which operating expenses

 

-109

 

-105

 

-55

 

-12

 

Total

 

-937

 

-281

 

-5,012

 

-3,386

 

-1,833

 

-205

 



44 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Adjusted gross income and gross margin by segment


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Networks		17,705			18,167			22,971			19,495			17,353			14,919
Cloud Software and Services		6,207			5,171			7,591			5,780			5,653			4,883
Enterprise		3,045			3,337			3,308			3,308			3,313			2,870
Other		2			20			-129			26			-38			108

Total		26,959			26,695			33,741			28,609			26,281			22,780


	2025						2024
Isolated quarters, as percentage of net sales	Q2			Q1			Q4			Q3			Q2			Q1
Networks		49.5	%		51.0	%		49.1	%		48.7	%		46.1	%		44.3	%
Cloud Software and Services		43.2	%		39.9	%		39.0	%		38.7	%		37.2	%		37.4	%
Enterprise		54.9	%		56.2	%		54.3	%		52.4	%		51.1	%		48.1	%
Other		0.4	%		4.2	%		-22.7	%		5.1	%		-7.5	%		18.2	%

Total		48.0	%		48.5	%		46.3	%		46.3	%		43.9	%		42.7	%


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		35,872			18,167			74,738			51,767			32,272			14,919
Cloud Software and Services		11,378			5,171			23,907			16,316			10,536			4,883
Enterprise		6,382			3,337			12,799			9,491			6,183			2,870
Other		22			20			-33			96			70			108

Total		53,654			26,695			111,411			77,670			49,061			22,780


	2025						2024
Year to date, as percentage of net sales	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		50.2	%		51.0	%		47.2	%		46.5	%		45.2	%		44.3	%
Cloud Software and Services		41.6	%		39.9	%		38.2	%		37.8	%		37.3	%		37.4	%
Enterprise		55.6	%		56.2	%		51.5	%		50.6	%		49.6	%		48.1	%
Other		2.3	%		4.2	%		-1.5	%		6.0	%		6.4	%		18.2	%

Total		48.3	%		48.5	%		44.9	%		44.4	%		43.4	%		42.7	%



45 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Adjusted EBIT (loss) and EBIT margin by segment


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Networks		6,485			7,148			10,005			8,077			5,231			4,251
Cloud Software and Services		1,378			145			1,794			420			88			-303
Enterprise		-861			-917			-1,726			-1,163			-17,139			-1,544
Other		45			-164			-489			-7			-71			1,901

Total		7,047			6,212			9,584			7,327			-11,891			4,305


	2025						2024
Isolated quarters, as percentage of net sales	Q2			Q1			Q4			Q3			Q2			Q1
Networks		18.1	%		20.1	%		21.4	%		20.2	%		13.9	%		12.6	%
Cloud Software and Services		9.6	%		1.1	%		9.2	%		2.8	%		0.6	%		-2.3	%
Enterprise		-15.5	%		-15.5	%		-28.3	%		-18.4	%		-264.3	%		-25.9	%
Other		9.5	%		-34.6	%		-85.9	%		-1.4	%		-14.1	%		319.5	%

Total		12.6	%		11.3	%		13.1	%		11.9	%		-19.9	%		8.1	%


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		13,633			7,148			27,564			17,559			9,482			4,251
Cloud Software and Services		1,523			145			1,999			205			-215			-303
Enterprise		-1,778			-917			-21,572			-19,846			-18,683			-1,544
Other		-119			-164			1,334			1,823			1,830			1,901

Total		13,259			6,212			9,325			-259			-7,586			4,305


	2025						2024
Year to date, as percentage of net sales	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		19.1	%		20.1	%		17.4	%		15.8	%		13.3	%		12.6	%
Cloud Software and Services		5.6	%		1.1	%		3.2	%		0.5	%		-0.8	%		-2.3	%
Enterprise		-15.5	%		-15.5	%		-86.8	%		-105.7	%		-150.0	%		-25.9	%
Other		-12.6	%		-34.6	%		61.3	%		113.5	%		166.4	%		319.5	%

Total		11.9	%		11.3	%		3.8	%		-0.1	%		-6.7	%		8.1	%

Rolling four quarters of adjusted EBITA margin by segment (%)


	2025						2024
Rolling four quarters, as percentage of net sales	Q2			Q1			Q4			Q3			Q2			Q1
Networks		20.4	%		19.3	%		17.5	%		16.0	%		14.0	%		13.4	%
Cloud Software and Services		6.1	%		4.0	%		3.2	%		3.6	%		3.6	%		3.0	%
Enterprise		-12.6	%		-15.0	%		-16.0	%		-14.1	%		-13.2	%		-11.7	%
Other		-30.4	%		-35.5	%		61.4	%		62.0	%		43.6	%		43.9	%

Total		13.2	%		11.6	%		11.0	%		10.2	%		8.8	%		8.5	%



46 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Adjusted EBITA and EBITA margin by segment


	2025						2024
Isolated quarters, SEK million	Q2			Q1			Q4			Q3			Q2			Q1
Networks		6,506			7,475			10,113			8,121			5,252			4,274
Cloud Software and Services		1,383			150			1,802			427			95			-295
Enterprise		-515			-528			-1,177			-785			-1,223			-782
Other		45			-164			-489			-7			-70			1,901

Total		7,419			6,933			10,249			7,756			4,054			5,098


	2025						2024
Isolated quarters, as percentage of net sales	Q2			Q1			Q4			Q3			Q2			Q1
Networks		18.2	%		21.0	%		21.6	%		20.3	%		13.9	%		12.7	%
Cloud Software and Services		9.6	%		1.2	%		9.3	%		2.9	%		0.6	%		-2.3	%
Enterprise		-9.3	%		-8.9	%		-19.3	%		-12.4	%		-18.9	%		-13.1	%
Other		9.5	%		-34.6	%		-85.9	%		-1.4	%		-13.9	%		319.5	%

Total		13.2	%		12.6	%		14.1	%		12.6	%		6.8	%		9.6	%


	2025						2024
Year to date, SEK million	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		13,981			7,475			27,760			17,647			9,526			4,274
Cloud Software and Services		1,533			150			2,029			227			-200			-295
Enterprise		-1,043			-528			-3,967			-2,790			-2,005			-782
Other		-119			-164			1,335			1,824			1,831			1,901

Total		14,352			6,933			27,157			16,908			9,152			5,098


	2025						2024
Year to date, as percentage of net sales	Jan-Jun			Jan-Mar			Jan-Dec			Jan-Sep			Jan-Jun			Jan-Mar
Networks		19.6	%		21.0	%		17.5	%		15.8	%		13.3	%		12.7	%
Cloud Software and Services		5.6	%		1.2	%		3.2	%		0.5	%		-0.7	%		-2.3	%
Enterprise		-9.1	%		-8.9	%		-16.0	%		-14.9	%		-16.1	%		-13.1	%
Other		-12.6	%		-34.6	%		61.4	%		113.6	%		166.5	%		319.5	%

Total		12.9	%		12.6	%		11.0	%		9.7	%		8.1	%		9.6	%

Operating working capital days

Inventory turnover days (ITO): Five quarter average inventory divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days.

Days sales outstanding (DSO): Five quarter average of contract assets, trade receivables and customer finance (current and non-current) less contract liabilities divided by four quarter rolling net sales multiplied by 365, expressed as number of days.

Days payables outstanding (DPO): Five quarter average of advances to suppliers and prepaid expenses less trade payables divided by four quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days.

Operating working capital days: ITO plus DSO less DPO

The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section.


	2025				2024
	Q2		Q1		Q4		Q3		Q2		Q1
Inventory turnover days (ITO)		80		81		84		92		97		100
Days sales outstanding (DSO)		14		17		23		26		29		30
Less: Days payables outstanding (DPO)		66		64		64		63		64		65
Operating working capital days		28		34		43		55		62		65



47 Ericsson \| Second quarter report 2025. July 15, 2025.		Alternative performance measures

Source: View Original Filing on SEC EDGAR

FAQ

How many Kroger (KR) shares did Brian W. Nichols dispose of on 14 Jul 2025?

The Form 4 shows 118 shares were withheld or disposed of.

What was the price per share for the insider transaction reported by KR?

The shares were valued at $72.27 each, per the filing.

What is Brian W. Nichols’ ownership in Kroger after the reported transaction?

After the transaction, he directly owns 10,258 KR shares.

What does transaction code "F" mean in a Form 4 filing?

Code F indicates shares were withheld or delivered to pay taxes or the exercise price related to an equity award.

Does this Form 4 signal a major insider sale at Kroger?

No. The 118-share withholding is routine and represents about 1.1 % of the officer’s reported holdings.

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[6-K] Ericsson American Current Report (Foreign Issuer)

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FAQ

How many Kroger (KR) shares did Brian W. Nichols dispose of on 14 Jul 2025?

What was the price per share for the insider transaction reported by KR?

What is Brian W. Nichols’ ownership in Kroger after the reported transaction?

What does transaction code "F" mean in a Form 4 filing?

Does this Form 4 signal a major insider sale at Kroger?

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