[6-K] ERICSSON LM TELEPHONE CO Current Report (Foreign Issuer)

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01/23/2026 - 04:38 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

January 23, 2026

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 [x] 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, January 23, 2026 regarding “Fourth quarter and full-year report 2025”

LOGO

Fourth quarter and full-year report 2025

Strategic highlights – solid commercial momentum and operational execution

●

Organic sales growth in all three segments in Q4, with 12%* growth in segment Cloud Software and Services.

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Operational improvements in recent years driving strong margins and solid free cash flow.

Fourth quarter highlights – good organic growth with all segments contributing

●

Sales increased by 6%* YoY. Market areas Europe, Middle East and Africa and South East Asia, Oceania and India grew, Americas was broadly stable while North East Asia declined. Reported sales were SEK 69.3 (72.9) b.

●

Adjusted¹ gross income was SEK 33.2 (33.7) b. with currency headwinds offsetting strong operational execution. Reported gross income was SEK 32.7 (32.7) b.

●

Adjusted¹ gross margin was 48.0% (46.3%) driven mainly by improvements in Cloud Software and Services. Reported gross margin was 47.2% (44.9%).

●

Adjusted¹ EBITA was SEK 12.7 (10.2) b. with an 18.3% (14.1%) margin, benefiting from improved segment margins in Mobile Networks. Reported EBITA was SEK 11.6 (8.6) b. with a 16.7% (11.8%) margin.

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Net income was SEK 8.6 (4.9) b. EPS diluted was SEK 2.57 (1.44).

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Free cash flow before M&A was SEK 14.9 (15.8) b.

Full-year highlights – margins stabilized at good levels and solid free cash flow

●

Sales increased by 2%*, with growth in Networks and Cloud Software and Services. Reported sales were SEK 236.7 (247.9) b.

●

Adjusted¹ gross income increased to SEK 113.9 (111.4) b. driven by improvements in Mobile Networks, and despite a SEK -7.2 b. currency headwind. Adjusted gross margin increased to 48.1% (44.9%).

●

Adjusted¹ EBITA was SEK 42.9 (27.2) b. with an adjusted¹ EBITA margin of 18.1% (11.0%), including the gain from the divestment of iconectiv.

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Net income was SEK 28.7 (0.4) b. EPS diluted was SEK 8.51 (0.01).

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Free cash flow before M&A was SEK 26.8 (40.0) b., delivering a cash flow to net sales of 11.3%.

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Net cash at year-end 2025 was SEK 61.2 (37.8) b.

●

Return on capital employed was 24.1% (2.6%), including the benefit of the iconectiv divestment.

●

A dividend of SEK 3.00 (2.85) per share for 2025 and a share buyback program of SEK 15.0 b. will be proposed to the AGM by the Board of Directors.

Börje Ekholm, President and CEO, said: “Our Q4 results demonstrate solid execution of our strategy priorities. It is encouraging that we delivered organic growth in a flattish RAN market environment through our efforts in mission critical networks, 5G core and Enterprise. The operational actions we have taken in recent years have resulted in improved margins and cash flow, with a ninth consecutive quarter of year-over-year adjusted EBITA margin expansion.

R&D investments to extend technology leadership continued, with a focus on AI-native, secure, and autonomous mobile networks. We generated strong free cash flow and have a strong cash position today. The Board will propose an increased dividend of SEK 3.00 per share, and will also seek a mandate for a share buyback of SEK 15 b.

For 2026, we expect the RAN market to be flat. Mission critical and enterprise markets, where we are well positioned, are expected to grow. In this environment, we plan to increase investments in defense during 2026 while continuing to optimize our cost base to support margins and cash flow generation.”

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

¹	Adjusted metrics exclude restructuring charges.



1		Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.



SEK b.	Q4 2025		Q4 2024		YoY change		Q3 2025		QoQ change		Jan-Dec 2025		Jan-Dec 2024		YoY change

Net sales		69.3		72.9		-5%		56.2		23%		236.7		247.9		-5%

Organic sales growth ¹ ²		-		-		6%		-		-		-		-		2%

Gross income		32.7		32.7		0%		26.8		22%		112.7		109.4		3%

Gross margin ²		47.2%		44.9%		-		47.6%		-		47.6%		44.1%		-

EBIT		11.2		8.0		40%		15.2		-26%		38.6		4.3		-

EBIT margin ²		16.1%		10.9%		-		26.9%		-		16.3%		1.7%		-

EBITA ²		11.6		8.6		35%		15.5		-25%		40.5		22.1		83%

EBITA margin ²		16.7%		11.8%		-		27.6%		-		17.1%		8.9%		-

Net income		8.6		4.9		76%		11.3		-24%		28.7		0.4		-

EPS diluted, SEK		2.57		1.44		78%		3.33		-23%		8.51		0.01		-

Free cash flow before M&A ²		14.9		15.8		-6%		6.6		124%		26.8		40.0		-33%

Net cash, end of period ²		61.2		37.8		62%		51.9		18%		61.2		37.8		62%

Adjusted financial measures ² ³

Adjusted gross income		33.2		33.7		-1%		27.0		23%		113.9		111.4		2%

Adjusted gross margin		48.0%		46.3%		-		48.1%		-		48.1%		44.9%		-

Adjusted EBIT		12.3		9.6		28%		15.5		-21%		41.0		9.3		-

Adjusted EBIT margin		17.7%		13.1%		-		27.5%		-		17.3%		3.8%		-

Adjusted EBITA		12.7		10.2		24%		15.8		-20%		42.9		27.2		58%

Adjusted EBITA margin		18.3%		14.1%		-		28.1%		-		18.1%		11.0%		-

¹	Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.

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

³	Adjusted metrics exclude restructuring charges.

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.



2		Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.

Group results



SEK b.	Q4 2025		Q4 2024		YoY change		Q3 2025		QoQ change		Jan-Dec 2025		Jan-Dec 2024		YoY change

Net sales		69.3		72.9		-5%		56.2		23%		236.7		247.9		-5%

Organic sales growth ¹		-		-		6%		-		-		-		-		2%

Gross income		32.7		32.7		0%		26.8		22%		112.7		109.4		3%

Gross margin		47.2%		44.9%		-		47.6%		-		47.6%		44.1%		-

Research and development (R&D) expenses		-13.1		-13.9		-		-11.5		-		-48.9		-53.5		-

Selling and administrative expenses		-9.0		-10.5		-		-7.9		-		-33.7		-51.7		-

Impairment losses on trade receivables		0.1		0.0		-		0.0		-		0.2		-0.3		-

Other operating income and expenses		0.4		-0.1		-		7.7		-95%		8.2		0.6		-

Share of earnings of associated companies		0.0		-0.3		-		0.0		-		0.1		-0.2		-

EBIT		11.2		8.0		40%		15.2		-26%		38.6		4.3		-

EBIT margin ¹		16.1%		10.9%		-		26.9%		-		16.3%		1.7%		-

EBITA ¹		11.6		8.6		35%		15.5		-25%		40.5		22.1		83%

EBITA margin ¹		16.7%		11.8%		-		27.6%		-		17.1%		8.9%		-

Financial income and expenses, net		-0.1		-0.4		-		-0.2		-		-0.3		-1.7		-

Income tax		-2.5		-2.7		-		-3.6		-		-9.6		-2.2		-

Net income		8.6		4.9		76%		11.3		-24%		28.7		0.4		-

Restructuring charges		-1.1		-1.6		-		-0.3		-		-2.3		-5.0		-

Adjusted financial measures ¹

Adjusted gross income		33.2		33.7		-1%		27.0		23%		113.9		111.4		2%

Adjusted gross margin		48.0%		46.3%		-		48.1%		-		48.1%		44.9%		-

Adjusted EBIT		12.3		9.6		28%		15.5		-21%		41.0		9.3		-

Adjusted EBIT margin		17.7%		13.1%		-		27.5%		-		17.3%		3.8%		-

Adjusted EBITA		12.7		10.2		24%		15.8		-20%		42.9		27.2		58%

Adjusted EBITA margin		18.3%		14.1%		-		28.1%		-		18.1%		11.0%		-

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

Fourth quarter comments

Net sales

Reported sales decreased by -5% YoY to SEK 69.3 (72.9) b., including a SEK -6.8 b. currency impact. Networks sales declined by -6% to SEK 44.2 b. Cloud Software and Services sales increased by 3% to SEK 20.0 b. Enterprise sales declined by -25% to SEK 4.6 b., mainly driven by a SEK -1.1 b. impact from the divestment of iconectiv in Q3 2025. Sales in segment Other were SEK 0.5 b.

Organic sales grew by 6% YoY. Networks sales increased by 4%* with sales growth in Europe, Middle East and Africa as well as in South East Asia, Oceania and India, partly offset by lower sales in the other market areas. Cloud Software and Services sales grew by 12%*, with growth in all market areas. Sales in segment Enterprise grew by 2%*, with higher sales in Global Communications Platform partly offset by a decline in Enterprise Wireless Solutions.

IPR licensing revenues decreased slightly to SEK 3.3 (3.5) b. as Q4 2024 benefited from retroactive revenue for unlicensed periods. 82% of IPR licensing revenues are reported in segment Networks, with the remainder in Cloud Software and Services.

Gross income and margin

Gross margin increased to 47.2% (44.9%). Networks gross margin increased, reflecting prior periods’ cost-reduction actions and operational efficiency. Gross margin in Cloud Software and Services increased as a result of prior periods’ cost-reduction actions and improved delivery performance. The margin declined in Enterprise primarily due to the impact of the divestment of iconectiv.

Gross income was stable at SEK 32.7 (32.7) b., as improvements in gross margin were offset by a negative currency impact of SEK -3.6 b. and the impact of the divestment of iconectiv.

Adjusted gross income decreased slightly to SEK 33.2 (33.7) b., with a margin of 48.0% (46.3%).

Research and development (R&D) expenses

R&D expenses decreased to SEK -13.1 (-13.9) b., including restructuring charges of SEK -0.3 (-0.4) b. and a positive currency impact of SEK 0.5 b. Excluding these impacts, R&D was broadly stable, with increased investments for technology leadership offset by savings from cost-reduction actions.

Selling and administrative (SG&A) expenses

SG&A expenses were SEK -9.0 (-10.5) b., including restructuring charges of SEK -0.3 (-0.2) b. and a currency benefit of SEK 0.6 b. SG&A expenses declined in all segments as a result of prior periods’ cost-reduction actions.

Other operating income and expenses

Other operating income and expenses were SEK 0.4 (-0.1) b. benefiting from the divestment of a minority interest.

Restructuring charges

Restructuring charges were SEK -1.1 (-1.6) b. mainly related to redundancy activities. Gross income included SEK -0.5 (-1.0) b. of restructuring charges, while operating expenses included SEK -0.6 (-0.6) b. of restructuring charges.

EBITA

EBITA increased to SEK 11.6 (8.6) b. mainly driven by lower operating expenses, benefiting from prior periods’ cost-reduction actions and improved gross margins. EBITA included a negative YoY currency impact of SEK -2.5 b. The EBITA margin was 16.7% (11.8%).

Adjusted EBITA increased to SEK 12.7 (10.2) b. The adjusted EBITA margin was 18.3% (14.1%).

EBIT

EBIT increased to SEK 11.2 (8.0) b. with a margin of

16.1% (10.9%). Amortization impacted EBIT by SEK -0.4 (-0.7) b.

Adjusted EBIT increased to SEK 12.3 (9.6) b. with a margin of 17.7% (13.1%).



3	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Group results

Financial income and expenses, net

Financial income and expenses were SEK -0.1 (-0.4) b. Financial net increased, primarily as a result of lower interest rates on borrowings and reduction in borrowings. The currency hedge effect was SEK 0.0 (0.0) b.

Income tax

Taxes were SEK -2.5 (-2.7) b.

Net income

Net income increased to SEK 8.6 (4.9) b.

Diluted EPS was SEK 2.57 (1.44).

Employees

The number of employees on December 31, 2025, was 88,826 compared with 89,898 on September 30, 2025. On December 31, 2024, the number of employees was 94,236.

Full-year comments

Net sales

Reported sales decreased by -5% to SEK 236.7 (247.9) b. with a currency impact of SEK -13.9 b. Networks sales declined by -5% to SEK 151.0 (158.2) b., sales in Cloud Software and Services were stable at SEK 62.7 (62.6) b., and Enterprise sales declined by -15% to SEK 21.1 (24.9) b. including a SEK -1.6 b. negative impact from the divestment of iconectiv in Q3 2025.

Organic sales grew by 2%*. Cloud Software and Services sales increased by 6%*, while Networks sales grew by 1%* and Enterprise sales declined by -5%*.

Organic sales increased in market area Americas, driven by good growth in North America, while sales in Latin America declined. Organic sales in market area Europe, Middle East and Africa grew driven by Middle East and Africa. Sales declined in the other market areas, with the largest reduction in market area South East Asia, Oceania and India, primarily due to reduced investment levels in India. IPR licensing revenues were SEK 14.5 (14.0) b.

The sales mix by commodity was: hardware 37% (38%), software 23% (23%) and services 39% (39%).

Gross income and margin

Gross income increased to SEK 112.7 (109.4) b. with a gross margin of 47.6% (44.1%). The improved gross margin was driven by cost-reduction actions and operational efficiency as well as favorable market mix. Gross income included a negative YoY currency impact of SEK -7.2 b.

Adjusted gross income increased to SEK 113.9 (111.4) b. Adjusted gross margin increased to 48.1% (44.9%).

Research and development (R&D) expenses

R&D expenses decreased to SEK -48.9 (-53.5) b., including restructuring charges of SEK -0.6 (-2.1) b. and a currency benefit of SEK 1.2 b. In 2024, R&D expenses were impacted by an impairment of intangible assets of SEK -1.4 b. Excluding these items, R&D expenses decreased by SEK -0.5 b. YoY. Investments in R&D, for technology leadership and operational resilience, were more than offset by savings from cost-reduction actions in Cloud Software and Services.

Selling and administrative (SG&A) expenses

SG&A expenses decreased to SEK -33.7 (-51.7) b. including restructuring charges of SEK -0.5 (-0.8) b. and a currency benefit of SEK 1.3 b. In 2024 SG&A expenses were impacted by an impairment of intangible assets of SEK -12.6 b. Excluding these items, SG&A expenses decreased by SEK -3.6 b. YoY as a result of cost-reduction actions. The decline was also supported by the Q3 divestments in Enterprise.

Other operating income and expenses

Other operating income and expenses were SEK 8.2 (0.6) b. reflecting a SEK 7.6 b. capital gain from the divestment of iconectiv and a SEK 0.4 b. benefit from a divestment of a minority interest.

Restructuring charges

Restructuring charges amounted to SEK -2.3 (-5.0) b. mainly related to redundancy activities. Gross income included SEK -1.3 (-2.0) b. of restructuring charges, while operating expenses included SEK -1.1 (-3.0) b. of restructuring charges.

EBITA

EBITA increased to SEK 40.5 (22.1) b. including a SEK 7.6 b. capital gain from the divestment of iconectiv and a negative currency impact of SEK -4.8 b. EBITA was supported by lower operating expenses and higher gross income. The EBITA margin was 17.1% (8.9%), driven by EBITA margin improvements in Mobile Networks and a 3.2 percentage point benefit from the iconectiv gain.

Adjusted EBITA increased to SEK 42.9 (27.2) b. The adjusted EBITA margin was 18.1% (11.0%).

EBIT

EBIT increased to SEK 38.6 (4.3) b., with a margin of 16.3% (1.7%). In 2024 EBIT was impacted by a SEK -15.3 b. non-cash impairment charge related to the impairment of intangible assets.

Adjusted EBIT was SEK 41.0 (9.3) b. with a margin of 17.3% (3.8%).

Financial income and expenses, net

Financial income and expenses were SEK -0.3 (-1.7) b. benefiting from lower interest rates and reduced borrowings, a reduction in other financial expenses, as well as a positive impact from currency hedges. The currency hedge effect was SEK 0.4 (0.1) b.

Income tax

Taxes were SEK -9.6 (-2.2) b. The effective tax rate was 25% for 2025, reflecting higher taxable income in jurisdictions with lower statutory tax rates. The effective tax rate for 2024 was 28%, excluding impairment charges, mainly goodwill and intangible assets related to Vonage.

Net income

Net income increased to SEK 28.7 (0.4) b. primarily driven by improved EBIT partly offset by higher taxes. Diluted EPS increased to SEK 8.51 (0.01), including a SEK 1.70 per share benefit from the gain related to the divestment of iconectiv.



4	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Group results

Market area sales



SEK b.	Q4 2025		Q4 2024		YoY change		YoY organic growth		Q3 2025		QoQ change		Jan-Dec 2025		Jan-Dec 2024		YoY change		YoY organic growth

Americas		22.9		25.8		-11%		-1%		19.8		16%		83.4		85.7		-3%		4%

Europe, Middle East and Africa		23.4		21.9		7%		13%		16.7		40%		70.7		71.3		-1%		3%

South East Asia, Oceania and India		9.0		8.4		6%		19%		7.1		27%		28.8		32.4		-11%		-4%

North East Asia		5.2		7.1		-27%		-16%		3.8		36%		16.0		18.8		-15%		-9%

Other		8.8		9.7		-9%		13%		8.8		1%		37.7		39.7		-5%		5%

Of which IPR		3.3		3.5		-5%		-		3.1		6%		14.5		14.0		4%		-

Total		69.3		72.9		-5%		6%		56.2		23%		236.7		247.9		-5%		2%

Fourth quarter comments

Market Area Americas

Sales decreased by -1%* YoY. Networks sales declined by -3%* with North America broadly stable, following a strong Q4 2024, and lower volumes in Latin America, reflecting continued intense competition and reduced customer network investments. Cloud Software and Services sales increased by 8%*, supported by software growth in North America. Reported sales declined by -11% YoY.

Market Area Europe, Middle East and Africa

Sales grew by 13%* YoY, supported by project deliverables in mission critical networks in several markets. Network sales in Middle East and Africa grew strongly, driven primarily by ongoing network modernization in Saudi Arabia and Algeria, as well as a new 5G launch in Morocco. Network sales in Europe were stable, with the benefits from recent market share gains in the UK and a new 5G roll out in Turkey offset by the completion of modernization projects elsewhere. Cloud Software and Services sales increased across Europe and Middle East and Africa driven by core networks growth. Reported sales increased by 7%.

In the quarter, significant new agreements were announced with stc, to advance Saudi Arabia’s digital infrastructure, and with Telia, to extend the RAN partnership in key markets.

Market Area South East Asia, Oceania and India

Sales increased by 19%* YoY. Networks sales grew, driven mainly by accelerated 5G deployments in Vietnam, partly offset by reduced network investment levels in India. Cloud Software and Services sales increased, reflecting the timing of project deliveries in India. Reported sales increased by 6% YoY.

Market Area North East Asia

Sales declined by -16%* YoY. Networks sales declined due to reduced customer investments in some 5G front-runner markets. Cloud Software and Services sales increased as a result of recent core networks contract wins and favorable timing of project deliverables. Reported sales declined by -27% YoY.

In the quarter, it was announced that Ericsson’s Massive-MIMO radios had been deployed in DOCOMO’s 5G network in Japan.

Market Area Other

Market area Other includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 13%*, with organic sales growth in Enterprise, a slight decline in IPR licensing revenues and a positive hedge effect. Reported sales decreased by -9% YoY.

In the quarter, a strategic partnership with LotusFlare was announced, to accelerate the adoption of network APIs.

Full-year comments

Market Area Americas

Sales increased by 4%* YoY. Networks sales increased by 3%*. Networks sales in North America grew, benefiting from increased market share and selective network investments by some large customers in the US and in Canada. In Latin America, sales declined due to continued intense competition and reduced customer network investments. Cloud Software and Services sales grew by 6%*, as a result of growth in core networks in North America. Reported sales declined by -3% YoY.

Market Area Europe, Middle East and Africa

Sales grew by 3%* YoY, supported by growth in mission critical networks. Networks sales in Middle East and Africa grew strongly, primarily driven by ongoing network modernization in Saudi Arabia and Algeria, as well as new 5G launches in Egypt and Morocco. Networks sales in Europe were stable, with the benefit of recent contract wins in the UK and Spain and a new 5G roll out in Turkey, offset by the completion of modernization projects elsewhere. Cloud Software and Services sales increased in Europe, driven by recent market share wins in the UK. Reported sales decreased by -1% YoY.

Market Area South East Asia, Oceania and India

Sales decreased by -4%* YoY. Networks sales declined, primarily due to reduced network investment levels in India, as well as increased competition in South East Asia. Sales in Cloud Software and Services grew primarily driven by timing of project deliverables. Reported sales decreased by -11% YoY.

Market Area North East Asia

Sales declined by -9%* YoY. Networks sales declined due to reduced customer investments in some 5G front-runner markets. Cloud Software and Services sales grew reflecting recent core networks contract wins. Reported sales declined by -15% YoY.

Market Area Other

Market area Other includes IPR licensing revenues and almost all sales in segment Enterprise. Sales increased by 5%* YoY, with sales growth in IPR licensing revenue and a favorable hedge effect. Reported sales decreased by -5% YoY.



5	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Market area sales

Segment results



Mobile Networks – Segment Networks

SEK b.	Q4 2025		Q4 2024		YoY change		Q3 2025		QoQ change		Jan-Dec 2025		Jan-Dec 2024		YoY change

Net sales		44.2		46.8		-6%		35.4		25%		151.0		158.2		-5%

Of which IPR licensing revenues		2.7		2.9		-5%		2.6		6%		11.9		11.4		4%

Organic sales growth		-		-		4%		-		-		-		-		1%

Gross income		21.6		22.3		-3%		17.7		22%		75.1		73.6		2%

Gross margin		49.0%		47.7%		-		50.0%		-		49.7%		46.6%		-

EBIT		9.3		9.3		1%		7.1		32%		29.8		25.7		16%

EBIT margin		21.1%		19.8%		-		20.0%		-		19.7%		16.2%		-

EBITA		9.3		9.4		0%		7.1		32%		30.2		25.9		17%

EBITA margin		21.1%		20.0%		-		20.0%		-		20.0%		16.3%		-

Restructuring charges		-0.7		-0.7		-		-0.1		-		-1.0		-1.9		-



Adjusted financial measures

Adjusted gross income		21.9		23.0		-5%		17.8		23%		75.5		74.7		1%

Adjusted gross margin		49.6%		49.1%		-		50.1%		-		50.0%		47.2%		-

Adjusted EBIT		10.0		10.0		0%		7.2		40%		30.8		27.6		12%

Adjusted EBIT margin		22.7%		21.4%		-		20.2%		-		20.4%		17.4%		-

Adjusted EBITA		10.1		10.1		-1%		7.2		40%		31.2		27.8		12%

Adjusted EBITA margin		22.8%		21.6%		-		20.3%		-		20.7%		17.5%		-

Breakdown of sales into products, services and IPR licensing is available in the back-end tables.

Fourth quarter comments

Net sales

Sales increased by 4%* YoY. Sales grew in market area Europe, Middle East and Africa as well as in South East Asia, Oceania and India, while sales declined in the other two market areas. Services sales grew, increasing sales mix share. Reported sales decreased by -6% YoY to SEK 44.2 (46.8) b., including a currency impact of SEK -4.4 b.

Sales growth in market area Europe, Middle East and Africa was driven by strong sales growth in Middle East and Africa, while sales in market area South East Asia, Oceania and India increased primarily due to growth in Vietnam. Sales in market area Americas declined slightly, primarily reflecting lower sales in Latin America. Sales declined across market area North East Asia, due to timing of network investments.

Gross income and margin

Adjusted gross margin increased to 49.6% (49.1%). Prior periods’ cost-reduction actions and operational efficiency more than offset a negative impact from product mix. Adjusted gross income decreased to SEK 21.9 (23.0) b., as the benefit of a higher gross margin was offset by lower sales and a negative currency impact of SEK -2.3 b.

EBITA

Adjusted EBITA was stable at SEK 10.1 (10.1) b. Lower gross income was offset by lower operating expenses, benefiting from continued efficiency improvements and positive currency impacts. EBITA was also positively impacted by SEK 0.4 b. from the divestment of a minority interest. R&D investments remained stable, supporting the strategy of building the best high-performing, AI-native, programmable networks, and maintaining technology leadership. Adjusted EBITA included a SEK -1.8 b. currency impact. The adjusted EBITA margin was 22.8% (21.6%).

Full-year comments

Net sales

Sales grew by 1%* YoY. Sales grew in market area Americas as well as in Europe, Middle East and Africa, while sales declined in the other two market areas. Reported sales decreased by -5% YoY to SEK 151.0 (158.2) b., including a currency impact of SEK -9.2 b.

In market area Americas, growth in North America was partly offset by a decline in Latin America. Sales growth in market area Europe, Middle East and Africa was driven by strong sales growth in Middle East and Africa. Sales declined in market area South East Asia, Oceania and India, primarily in India, and in market area North East Asia.

Gross income and margin

Adjusted gross margin increased to 50.0% (47.2%) as a result of continued cost-reduction actions and operational efficiency. Adjusted gross income increased to SEK 75.5 (74.7) b., despite lower net sales and a negative currency impact of SEK -5.0 b.

EBITA

Adjusted EBITA increased to SEK 31.2 (27.8) b. supported by higher gross income and lower operating expenses. Operating expenses decreased, benefiting from continued efficiency improvements and positive currency impacts. R&D investments remained stable, supporting the strategy of building the best high-performing, AI-native, programmable networks and maintaining technology leadership. Adjusted EBITA included a SEK -3.9 b. currency impact. The adjusted EBITA margin was 20.7% (17.5%).



6	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Segment results



Mobile Networks – Segment Cloud Software and Services

SEK b.	Q4 2025		Q4 2024		YoY change		Q3 2025		QoQ change		Jan-Dec 2025		Jan-Dec 2024		YoY change

Net sales		20.0		19.5		3%		15.3		31%		62.7		62.6		0%

Of which IPR licensing revenues		0.6		0.6		-5%		0.6		6%		2.6		2.5		4%

Organic sales growth		-		-		12%		-		-		-		-		6%

Gross income		8.6		7.2		19%		6.5		34%		26.1		23.0		14%

Gross margin		43.1%		37.2%		-		42.1%		-		41.7%		36.8%		-

EBIT (loss)		3.4		1.1		-		1.7		95%		6.0		-0.4		-

EBIT margin		16.8%		5.6%		-		11.2%		-		9.6%		-0.7%		-

EBITA (loss)		3.4		1.1		-		1.7		95%		6.0		-0.4		-

EBITA margin		16.8%		5.7%		-		11.2%		-		9.6%		-0.6%		-

Restructuring charges		-0.3		-0.7		-		-0.2		-		-1.2		-2.4		-



Adjusted financial measures

Adjusted gross income		8.9		7.6		17%		6.7		33%		26.9		23.9		13%

Adjusted gross margin		44.3%		39.0%		-		43.6%		-		43.0%		38.2%		-

Adjusted EBIT		3.7		1.8		107%		1.9		94%		7.2		2.0		-

Adjusted EBIT margin		18.5%		9.2%		-		12.5%		-		11.4%		3.2%		-

Adjusted EBITA		3.7		1.8		106%		1.9		94%		7.2		2.0		-

Adjusted EBITA margin		18.6%		9.3%		-		12.5%		-		11.4%		3.2%		-

Breakdown of sales into products, services and IPR licensing is available in the back-end tables.

Fourth quarter comments

Net sales

Sales increased by 12%* YoY, driven by increased core networks sales across all market areas. Reported sales grew by 3% to SEK 20.0 (19.5) b., despite a currency impact of SEK -1.8 b. Services sales accounted for 58% (60%) of sales.

Sales grew in all market areas. The strongest growth was in market areas North East Asia and South East Asia, Oceania and India, driven by timing of project deliverables. In market area Europe, Middle East and Africa, sales grew in Africa and in Europe. In market area Americas, sales growth in North America was partly offset by lower sales in Latin America.

Gross income and margin

Adjusted gross margin increased to 44.3% (39.0%), supported by a favorable product mix, with a higher share of software sales. In addition, the margin benefited from improved delivery efficiency and enhanced delivery performance in customer projects. Adjusted gross income increased to SEK 8.9 (7.6) b. despite a SEK -0.9 b. currency impact.

EBITA

Adjusted EBITA was SEK 3.7 (1.8) b. supported by higher gross income and lower operating expenses, reflecting strong strategy execution. Operating expenses decreased, benefiting from continued efficiency improvements and positive currency impacts. Adjusted EBITA included a SEK -0.7 b. currency impact. The adjusted EBITA margin was 18.6% (9.3%).

Full-year comments

Net sales

Sales grew by 6%* YoY, as a result of increased core network sales across all market areas, driven by 5G core solutions. Reported sales were stable at SEK 62.7 (62.6) b. including a currency impact of SEK -3.4 b. Services sales accounted for 62% (64%) of sales.

Sales grew in all market areas. The strongest growth was in market area Americas, driven by good growth in North America, partly offset by lower sales in Latin America. Growth in market area Europe, Middle East and Africa was driven mainly by Europe. Sales growth in market South East Asia, Oceania and India was driven by India. In market area North East Asia, sales growth was driven by growth in Japan.

Gross income and margin

Adjusted gross margin increased to 43.0% (38.2%) benefiting from strong strategy execution with improved delivery efficiency and performance, with higher share of software sales and continued focus on commercial discipline. Adjusted gross income increased to SEK 26.9 (23.9) b. despite a SEK -1.5 b. currency impact.

EBITA

Adjusted EBITA increased to SEK 7.2 (2.0) b. supported by higher gross income and lower operating expenses, reflecting strong strategy execution. Operating expenses decreased, benefiting from continued efficiency improvements and positive currency impacts, more than offsetting the increased investments in technology leadership. Adjusted EBITA included a SEK -0.9 b. currency impact. The adjusted EBITA margin was 11.4% (3.2%).



7	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Segment results



Segment Enterprise

SEK b.	Q4 2025		Q4 2024		YoY change		Q3 2025		QoQ change		Jan-Dec 2025		Jan-Dec 2024		YoY change

Net sales		4.6		6.1		-25%		5.1		-9%		21.1		24.9		-15%

Of which Global Comms Platform (Vonage)		3.2		3.4		-7%		3.2		0%		12.9		14.8		-13%

Of which Enterprise Wireless Solutions		1.2		1.4		-14%		1.2		2%		4.8		4.9		-2%

Organic sales growth		-		-		2%		-		-		-		-		-5%

Gross income		2.4		3.3		-28%		2.6		-9%		11.4		12.8		-11%

Gross margin		52.1%		54.3%		-		51.6%		-		53.9%		51.4%		-

EBIT (loss)		-1.5		-1.9		-		6.6		-		3.2		-22.1		-

EBIT margin		-33.3%		-30.8%		-		131.5%		-		15.3%		-88.8%		-

EBITA (loss)		-1.1		-1.3		-		7.0		-		4.7		-4.5		-

EBITA margin		-24.5%		-21.8%		-		138.1%		-		22.3%		-18.0%		-

Restructuring charges		0.0		-0.2		-		0.0		-		-0.1		-0.5		-



Adjusted financial measures

Adjusted gross income		2.4		3.3		-28%		2.6		-9%		11.4		12.8		-11%

Adjusted gross margin		52.1%		54.3%		-		51.6%		-		53.9%		51.5%		-

Global Comms Platform (Vonage)		46.7%		49.6%		-		46.2%		-		48.0%		44.8%		-

Enterprise Wireless Solutions		67.4%		57.5%		-		63.5%		-		63.0%		58.8%		-

Adjusted EBIT (loss)		-1.5		-1.7		-		6.7		-		3.4		-21.6		-

Adjusted EBIT margin		-33.2%		-28.3%		-		132.0%		-		16.0%		-86.8%		-

Adjusted EBITA (loss)		-1.1		-1.2		-		7.0		-		4.9		-4.0		-

Of which Global Comms Platform (Vonage) ¹		-0.6		-0.6		-		-0.6		-		-2.0		-2.0		-

Of which Enterprise Wireless Solutions ¹		-0.3		-0.5		-		-0.3		-		-1.3		-2.2		-

Adjusted EBITA margin		-24.4%		-19.3%		-		138.7%		-		23.0%		-16.0%		-

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

Fourth quarter comments

Net sales

Sales increased by 2%* YoY. Higher sales in Global Communications Platform were partly offset by a decline in Enterprise Wireless Solutions. Reported sales decreased by -25% YoY to SEK 4.6 (6.1) b., reflecting the divestment of iconectiv in Q3 2025 and a currency impact of SEK -0.5 b.

Sales in Global Communications Platform increased by 3%* YoY, benefiting from growth in CPaaS.

Sales in Enterprise Wireless Solutions declined by -3%* YoY, with growth in WWAN solutions offset by lower sales in Private 5G solutions, reflecting strong deliveries in the prior year period.

Gross income and margin

Adjusted gross margin decreased to 52.1% (54.3%), as the impact of the divestment of iconectiv in Q3 2025 and a change in business mix in Global Communications Platform were partly offset by higher gross margins in Enterprise Wireless Solutions. Adjusted gross income was SEK 2.4 (3.3) b., reflecting the divestment of iconectiv in Q3 2025 and a negative currency impact of SEK -0.3 b.

EBITA (loss)

Adjusted EBITA (loss) was SEK -1.1 (-1.2) b., with the impact of the divestment of iconectiv in Q3 2025 offset by operational improvements in Enterprise Wireless Solutions. The currency impact was SEK 0.0 b. Adjusted EBITA margin was -24.4% (-19.3%).

Full-year comments

Net sales

Sales declined by -5%* YoY. Growth in Enterprise Wireless Solutions was more than offset by a decline in Global Communications Platform. Reported sales decreased by -15% YoY to SEK 21.1 (24.9) b. reflecting the divestment of iconectiv in Q3 2025 and a currency impact of SEK -1.2 b.

Sales in Global Communications Platform declined by -7%* YoY, reflecting the 2024 decision to reduce activities in some countries as well as lower sales in legacy solutions.

Sales in Enterprise Wireless Solutions increased by 4%* YoY, with growth in WWAN solutions partly offset by lower sales in Private 5G solutions.

Gross income and margin

Adjusted gross margin increased to 53.9% (51.5%), benefiting from the decision to focus on more profitable markets in Global Communications Platform and a stronger product mix in Enterprise Wireless Solutions. Adjusted gross income decreased to SEK 11.4 (12.8) b. primarily reflecting the divestment of iconectiv in Q3 2025 and a negative currency impact of SEK -0.6 b.

EBITA (loss)

Adjusted EBITA (loss) was SEK 4.9 (-4.0) b. including the SEK 7.6 b. capital gain from the divestment of iconectiv as well as operational improvements in Enterprise Wireless Solutions. Adjusted EBITA included a SEK 0.0 b. currency impact. Adjusted EBITA margin was 23.0% (-16.0%).

Divested operations

In Q3 2025, iconectiv was divested and Aduna was deconsolidated. The contribution to Enterprise 2025 results from divested and deconsolidated operations was SEK 2.7 b. in net sales, SEK 1.8 b. in adjusted gross income, and SEK 8.8 b. in adjusted EBITA.



8	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Segment results



Segment Other

SEK b.	Q4 2025		Q4 2024		YoY change		Q3 2025		QoQ change		Jan-Dec 2025		Jan-Dec 2024		YoY change

Net sales		0.5		0.6		-16%		0.4		16%		1.8		2.2		-16%

Organic sales growth		-		-		-10%		-		-		-		-		-13%

Gross income		0.0		-0.2		-121%		0.0		-		0.1		-0.1		-

Gross margin		7.4%		-29.5%		-		0.0%		-		3.0%		-4.2%		-

EBIT (loss)		0.0		-0.5		-		-0.3		-		-0.4		1.2		-

EBIT margin		1.1%		-93.5%		-		-71.5%		-		-22.3%		53.6%		-

EBITA (loss)		0.0		-0.5		-		-0.3		-		-0.4		1.2		-

EBITA margin		1.1%		-93.5%		-		-71.3%		-		-22.3%		53.7%		-

Restructuring charges		0.0		0.0		-		0.0		-		0.0		-0.2		-



Adjusted financial measures

Adjusted gross income		0.1		-0.1		-148%		0.0		-		0.1		0.0		-

Adjusted gross margin		13.0%		-22.7%		-		1.0%		-		4.8%		-1.5%		-

Adjusted EBIT (loss)		0.0		-0.5		-		-0.3		-		-0.4		1.3		-

Adjusted EBIT margin		8.0%		-85.9%		-		-70.6%		-		-20.2%		61.3%		-

Adjusted EBITA (loss)		0.0		-0.5		-		-0.3				-0.4		1.3		-

Adjusted EBITA margin		8.0%		-85.9%		-		-70.3%		-		-20.2%		61.4%		-

Fourth quarter comments

Net sales

Reported sales were SEK 0.5 (0.6) b.

Gross income and margin

Adjusted gross income was SEK 0.1 (-0.1) b. Adjusted gross margin was 13.0% (-22.7%).

EBITA (loss)

Adjusted EBITA (loss) was SEK 0.0 (-0.5) b.

Full-year comments

Net sales

Reported sales decreased to SEK 1.8 (2.2) b., primarily due to the divestment of the IoT business.

Gross income and margin

Adjusted gross income was SEK 0.1 (0.0) b. Adjusted gross margin was 4.8% (-1.5%).

EBITA (loss)

Adjusted EBITA (loss) was SEK -0.4 (1.3) b. 2024 included a one-time gain of SEK 1.9 b. from the resolution of a commercial dispute.



9	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Segment results

Cash flow and financial position



Free cash flow bridge, SEK b.	Q4 2025		Q4 2024		Q3 2025		Jan-Dec 2025		Jan-Dec 2024

Adjusted EBITA		12.7		10.2		15.8		42.9		27.2

Depreciation and amortization of non-acquired assets		1.7		2.1		1.8		7.3		7.9

Restructuring charges		-1.1		-1.6		-0.3		-2.3		-5.0

Changes in operating net assets		6.4		7.8		-0.5		0.4		22.8

Interest paid/received, taxes paid, and other		-3.2		-1.1		-8.9		-15.3		-6.6

Cash flow from operating activities		16.5		17.5		7.9		33.0		46.3

Net capex and other investing activities		-1.2		-1.1		-0.8		-4.1		-3.7

Repayment of lease liabilities		-0.5		-0.6		-0.5		-2.1		-2.5

Free cash flow before M&A		14.9		15.8		6.6		26.8		40.0



Cash flow from operating activities		16.5		17.5		7.9		33.0		46.3

Cash flow from investing activities		-5.0		-8.3		3.2		-11.4		-16.0

Cash flow from financing activities		-8.8		-5.4		-1.2		-14.2		-23.9



SEK b.	Dec 31 2025		Dec 31 2024		Sep 30 2025

Gross cash		93.9		75.9		88.4

- Borrowings, current		3.5		6.1		6.7

- Borrowings, non-current		29.2		31.9		29.9

Net cash		61.2		37.8		51.9

Equity		110.3		93.0		102.5

Equity ratio (%)		39.5%		31.8%		36.3%

Capital turnover (times)		1.5		1.5		1.5

Return on capital employed (%)		24.1%		2.6%		22.5%

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

Fourth quarter comments

Cash flow

Cash flow from operating activities was SEK 16.5 (17.5) b. driven by earnings. Operating net assets decreased, driven by increased provisions and accruals for variable pay, partly offset by a small increase in working capital.

Cash flow from operating activities decreased compared to the prior year period. Taxes paid were higher in 2025, mainly reflecting taxes on the iconectiv divestment gain, and working capital was stable.

Cash flow from investing activities was SEK -5.0 (-8.3) b. driven by net investments in interest-bearing securities.

Cash flow from financing activities was SEK -8.8 (-5.4) b. including the second tranche of dividend payments and the repayment of SEK 2.4 b. of maturing debt.

Financial position

Gross cash increased sequentially by SEK 5.5 b. to SEK 93.9 b. driven by positive free cash flow before M&A, partly offset by dividends paid and net repayment of debt facilities.

The average maturity of parent company borrowings was 3.0 years as of December 31, 2025, compared with 3.6 years as of December 31, 2024.

Net cash increased sequentially by SEK 9.4 b. to SEK 61.2 b.

Full-year comments

Cash flow

Cash flow from operating activities was SEK 33.0 (46.3) b. driven by earnings. Operating net assets remained broadly stable.

Cash flow from operating activities decreased compared to the prior year. While adjusted EBITA improved, prior year operating cash flow benefited from a strong working capital reduction.

Cash flow from investing activities was SEK -11.4 (-16.0) b. driven by net investments in interest-bearing securities, following the increase in gross cash, partly offset by the proceeds from the divestment of iconectiv.

Cash flow from financing activities was SEK -14.2 (-23.9) b. including SEK 9.5 b. of dividends paid. SEK 1.6 b. of commercial paper and SEK 2.4 b. of maturing debt that were repaid during the year were partly offset by the benefit of received collateral on derivatives.

Financial position

Gross cash increased by SEK 18.1 b. to SEK 93.9 b. driven by positive free cash flow before M&A and the proceeds from the iconectiv divestment, partly offset by dividends paid and a negative exchange rate translation effect on cash and cash equivalents. Ericsson had unutilized committed credit facilities of SEK 23.0 b. (USD 2.5 b.) as of December 31, 2025.

Net cash increased by SEK 23.4 b. to SEK 61.2 b.

Liabilities for post-employment benefits decreased in the year to SEK 18.6 b. from SEK 24.4 b. reflecting a higher Swedish discount rate. 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 10.9 b., which is SEK 7.7 b. lower than current DBO.



10	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Cash flow and financial position

Key data points

Market

Dell’Oro estimates that the global RAN equipment market will remain stable in 2026.

Source: Dell’Oro Mobile RAN Quarterly Report Q325, Nov 2025.

Ericsson

Net sales

Reported average seasonality last 3 years (2023–2025), %.



	Q4 ® Q1	Q1 ® Q2	Q2 ® Q3	Q3 ® Q4

Networks	-25%	+4%	+1%	+17%

Cloud Software and Services	-33%	+13%	+3%	+29%

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

IPR licensing revenues

IPR licensing revenue growth opportunities remain, including from increased penetration of the smartphone market and from new applications.

In Q4 2025, recurring annual IPR licensing revenues were approximately SEK 13 b. On December 31, 2025, a smartphone licensing agreement with a Chinese vendor expired.

Optimizing the terms and value of new agreements and renewals will remain a priority.

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 2026 are expected to be at elevated levels.

Segments

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

Networks

Sales growth in Q1 2026 is expected to be broadly similar to 3-year average seasonality.

Adjusted gross margin in Q1 2026 is expected to be in the range of 49% to 51%.

Cloud Software and Services

Sales growth in Q1 2026 is expected to be below 3-year average seasonality.

Enterprise

In 2025, the contribution to Enterprise results from divested and deconsolidated operations was SEK 2.7 b. in net sales, SEK 1.8 b. in adjusted gross income, and SEK 8.8 b. in adjusted EBITA.



11	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Key data points

Parent Company

Income after financial items January – December 2025, was SEK 31.3 (6.6) b.

At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 77.8 (58.7) b.

There was a decrease in intercompany lending of SEK 0.8 b. and an increase in intercompany borrowing of SEK 17.2 b. in the quarter.

At the end of the year, non-restricted equity amounted to SEK 43.1 (22.3) billion, and total equity amounted to SEK 91.4 (70.6) b.

The holding of treasury stock on December 31, 2025, was 38,002,276 Class B shares.



12	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Parent Company

Dividend, AGM, and Annual Report

The Ericsson Board of Directors has undertaken a review of the capital allocation priorities and balance sheet structure during 2025.

The capital allocation principles are; (1) Maintain technology leadership and ensure strong customer confidence through continued investments in R&D, even during periods of increased market volatility or low visibility; (2) Stable to progressive ordinary dividends; (3) Selective inorganic investments to complement the existing product portfolio and/or market footprint; and (4) Ensure capital discipline through distributing excess cash to shareholders.

Ericsson strives for a solid net cash position over time to secure its top priorities of technology leadership and customer confidence, while remaining committed to an investment grade credit rating.

Based on the review and the full-year 2025 results, and in line with the updated capital allocation principles, the Board has concluded there is excess cash available to distribute to shareholders.

The Board of Directors will propose to the Annual General Meeting (AGM) an ordinary dividend to shareholders of SEK 3.00 (2.85) per share for the financial year 2025. The dividend is proposed to be paid in two installments, SEK 1.50 per share with the record date April 2, 2026, and SEK 1.50 per share with the record date September 29, 2026. Should the Annual General Meeting decide in favor of the proposals, the payment of the dividend is expected to be made on April 9, 2026, and on October 2, 2026. The proposed dividend takes into consideration 2025 earnings, the balance sheet, future business plans, and expected economic developments.

Ericsson’s Board of Directors will further propose to the AGM to authorize the Board to initiate a share buyback program to repurchase shares, with purchases expected to begin following the publication of the Q1 2026 report. The proposed program targets to return up to SEK 15 b. of cash to shareholders over the period extending to the 2027 Annual General Meeting at the latest, with a formal mandate to buy back a maximum of 10% of shares outstanding. The share repurchase is proposed to include Class B shares traded on Nasdaq Stockholm. The repurchased shares are expected to be canceled or partially used to fund approved LTV programs.

In total, the proposals amount to a potential distribution to shareholders of up to SEK 25.0 b. for the financial year 2025. Adjusted for the proposed shareholder distributions, the net cash position at year end 2025 remains at a solid level when considering future investments to maintain technology leadership.

Ericsson Annual General Meeting

The Annual General Meeting of shareholders will be held on March 31, 2026. Additional information about the Annual General Meeting of shareholders will be made available on Ericsson’s website.

Annual Report

The annual report will be made public and available on the Ericsson website www.ericsson.com.



13	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Dividend, AGM and Annual Report

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.

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.

In November 2025, a third civil lawsuit also alleging violations of the US Anti-Terrorism Act was filed in the US District Court for the District of Columbia. The lawsuit was filed by a law firm not involved in the August 2022 and February 2024 lawsuits and involves substantially similar factual allegations and claims to those made in the Anti-Terrorism Act lawsuits filed in August 2022 and February 2024, and similarly names the same Ericsson corporate defendants, 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 France, Afghanistan, and Belgium from 2012 to 2018, 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 appealed the decision and on August 15, 2025, the Court of Appeal overturned the District Court’s decision. The claimants have appealed the decision to the Supreme Court. Proceedings on the merits of the case are stayed pending final resolution of the document production issue. Ericsson will continue to vigorously defend this matter.

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, enforcement actions, 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 and transactions.

PRESS RELEASES



		Nov 11, 2025		Ericsson announces change to the Executive Team

POST-CLOSING EVENT

PRESS RELEASE Jan 15, 2026

Ericsson announces proposed headcount reduction in Sweden



14	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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.”

Stockholm, January 23, 2026

Telefonaktiebolaget LM Ericsson

Börje Ekholm, President and CEO

Org. No. 556016-0680

Date for next report: April 17, 2026



15	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Risk factors

Editor’s note

Media and analyst briefing

Ericsson invites media, investors and analysts to a conference call and live video webcast at 09:00 AM CEST on January 23, 2026.

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

Peter Borsos, Vice President,

Head of Group Communications

Phone: +46 70 317 68 00

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: investor.relations@ericsson.com

Alan Ganson, Director,

Investor Relations

Phone: +46 70 267 27 30

E-mail: investor.relations@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



16	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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.



17	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Forward-looking statements

Auditors’ Review Report

Introduction

We have reviewed the condensed interim financial information (year-end report) of Telefonaktiebolaget LM Ericsson (publ.) as of December 31, 2025, and the twelve months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the year-end report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this year-end report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity.

A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a review do not enable us to obtain assurance that would make

us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion expressed based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the year-end report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Stockholm, January 23, 2026

Deloitte AB

Jonas Ståhlberg

Authorized Public Accountant



18	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Auditors’ Review Report

Financial statements and other information

Contents


Financial statements (unaudited)			20

Condensed consolidated income statement			20

Condensed statement of comprehensive income			20

Condensed consolidated balance sheet			21

Condensed consolidated statement of cash flows			22

Condensed consolidated statement of changes in equity			23

Condensed consolidated income statement – isolated quarters			23

Condensed consolidated statement of cash flows – isolated quarters			24

Condensed Parent Company income statement			25

Condensed Parent Company statement of comprehensive income			25

Condensed Parent Company balance sheet			26

Accounting policies and Explanatory notes (unaudited)			27

Note 1 – Accounting policies and Other changes			27

Note 2 – Segment information			28

Note 3 – Financial income and expenses, net			32

Note 4 – Provisions			33

Note 5 – Financial risk management			34

Note 6 – Cash flow			35

Note 7 – Contingent liabilities and Assets pledged as collateral			35

Note 8 – Share information			36

Note 9 – Employee information			36

Note 10 – Information on non-adjusting event			36

Alternative performance measures (unaudited)			37

Sales growth adjusted for comparable units and currency			37

Items excluding restructuring charges and impairments of goodwill and intangible assets			38

EBITA and EBITA margin / Adjusted EBITA and Adjusted EBITA margin			39

Rolling four quarters of net sales and adjusted EBITA margin (%)			39

Gross cash and net cash, end of period			40

Capital employed			40

Capital turnover			40

Return on capital employed			41

Equity ratio			41

Return on equity			41

Operating working capital			42

Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales)			42

Sales growth by segment adjusted for comparable units and currency			43

Sales growth by market area adjusted for comparable units and currency *			43

Rolling four quarters of net sales by segment			43

Gross margin by segment by quarter			44

EBIT margin by segment by quarter			44

EBITA and EBITA margin by segment by quarter			45

Restructuring charges by function			46

Restructuring charges by segment			46

Adjusted gross income and Adjusted gross margin by segment			47

Adjusted EBIT (loss) and Adjusted EBIT margin by segment			48

Rolling four quarters of adjusted EBITA margin by segment (%)			48

Adjusted EBITA and Adjusted EBITA margin by segment			49

Operating working capital days			49



19	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Financial statements and other information

Financial statements (unaudited)

Condensed consolidated income statement



		Q4						Jan-Dec

SEK million	Note	2025		2024		Change		2025		2024

Net sales	2		69,285		72,913		-5%		236,681		247,880

Cost of sales			-36,580		-40,206		-9%		-124,013		-138,515

Gross income	2		32,705		32,707		0%		112,668		109,365

Research and development expenses ¹⁾			-13,098		-13,877		-6%		-48,852		-53,514

Selling and administrative expenses ¹⁾			-8,971		-10,512		-15%		-33,685		-51,657

Impairment reversals/losses on trade receivables			127		-2		-		239		-265

Operating expenses			-21,942		-24,391		-10%		-82,298		-105,436

Other operating income and expenses ²⁾			420		-50		-		8,210		630

Share of earnings of associated companies			-22		-308		-93%		54		-246

Earnings before financial items and income tax (EBIT)	2		11,161		7,958		40%		38,634		4,313

Financial income and expenses, net	3		-80		-391		-80%		-332		-1,724

Income after financial items			11,081		7,567		46%		38,302		2,589

Income tax ¹⁾			-2,510		-2,688		-7%		-9,588		-2,215

Net income			8,571		4,879		76%		28,714		374



Net income attributable to:

Owners of the Parent Company			8,563		4,779				28,428		20

Non-controlling interests			8		100				286		354

Other information

Average number of shares, basic (million)	8		3,333		3,333				3,333		3,332

Earnings per share, basic (SEK) ³⁾	8		2.57		1.44				8.53		0.01

Earnings per share, diluted (SEK) ³⁾	8		2.57		1.44				8.51		0.01

¹⁾	Jan-Dec 2024 includes an impairment of intangible assets reported in the second quarter, 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-Dec 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv, and one divestment of a minority interest in Q4 2025. Jan-Dec 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



	Q4				Jan-Dec

SEK million	2025		2024		2025		2024

Net income		8,571		4,879		28,714		374

Other comprehensive income

Items that will not be reclassified to profit or loss

Remeasurements of defined benefit pension plans		1,863		-371		6,744		877

Revaluation of credit risk on borrowings		32		-128		30		-567

Tax on items that will not be reclassified to profit or loss		-250		141		-1,380		-28

Items that have been or may be reclassified to profit or loss

Cash flow hedge reserve

Gains/losses arising during the period		363		-3,128		5,047		-3,892

Reclassification adjustments on gains/losses included in profit or loss		-481		249		-218		725

Translation reserves

Changes in translation reserves		-1,794		5,188		-12,721		6,461

Reclassification to profit or loss		37		155		1,395		73

Share of other comprehensive income of associated companies		-29		29		-93		40

Tax on items that have been or may be reclassified to profit or loss		24		593		-995		652

Total other comprehensive income, net of tax		-235		2,728		-2,191		4,341

Total comprehensive income		8,336		7,607		26,523		4,715



Total comprehensive income attributable to:

Owners of the Parent Company		8,367		7,619		26,125		4,515

Non-controlling interests		-31		-12		398		200



20	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Financial statements

Condensed consolidated balance sheet



		Dec 31		Dec 31
SEK million	Note	2025		2024



Assets

Non-current assets

Intangible assets

Capitalized development expenses			3,866		4,593

Goodwill			46,882		56,077

Customer relationships, IPR and other intangible assets			5,631		7,954

Property, plant and equipment			8,789		10,545

Right-of-use assets			6,738		6,487

Financial assets

Investments in associated companies			1,507		1,179

Other investments in shares and participations	5		1,909		2,029

Customer finance, non-current	5		238		190

Interest-bearing securities, non-current	5		37,298		19,440

Other financial assets, non-current	5		5,960		5,161

Deferred tax assets			16,851		24,412

			135,669		138,067

Current assets

Inventories			23,451		27,125

Contract assets			7,333		6,924

Trade receivables	5		40,327		44,151

Customer finance, current	5		852		4,332

Current tax assets			5,030		6,083

Other current receivables			9,920		9,261

Interest-bearing securities, current	5		12,715		12,546

Cash and cash equivalents	5		43,926		43,885

			143,554		154,307



Total assets			279,223		292,374



Equity and liabilities

Equity

Stockholders’ equity			109,535		94,284

Non-controlling interest in equity of subsidiaries			729		-1,301

			110,264		92,983

Non-current liabilities

Post-employment benefits			18,648		24,448

Provisions, non-current	4		2,993		3,511

Deferred tax liabilities			152		1,295

Borrowings, non-current	5		29,165		31,904

Lease liabilities, non-current			5,772		5,363

Other non-current liabilities			1,292		996

			58,022		67,517

Current liabilities

Provisions, current	4		5,691		8,204

Borrowings, current	5		3,538		6,137

Lease liabilities, current			1,789		2,132

Contract liabilities			36,867		41,229

Trade payables	5		26,335		30,173

Current tax liabilities			2,679		3,322

Other current liabilities			34,038		40,677

			110,937		131,874



Total equity and liabilities			279,223		292,374



21	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Financial statements

Condensed consolidated statement of cash flows



		Q4				Jan-Dec

SEK million	Note	2025		2024		2025		2024

Operating activities

Net income			8,571		4,879		28,714		374

Adjustments for

Taxes			2,724		2,563		10,074		2,540

Earnings/dividends in associated companies			27		387		57		459

Depreciation, amortization and impairment losses	6		2,185		2,815		9,241		25,734

Other			-735		528		-8,579		1,884

			12,772		11,172		39,507		30,991



Changes in operating net assets

Inventories			3,667		2,876		929		10,208

Customer finance, current and non-current			406		-225		3,033		2,755

Trade receivables and contract assets			-3,288		-3,041		-4,301		2,576

Trade payables			1,568		2,580		462		496

Provisions and post-employment benefits			1,743		958		-1,435		-53

Contract liabilities			-2,913		-407		1,485		4,598

Other operating assets and liabilities, net			5,175		5,088		205		2,237

			6,358		7,829		378		22,817



Interest received			716		518		2,283		1,800

Interest paid			-407		-543		-2,205		-3,043

Taxes paid			-2,932		-1,463		-7,009		-6,304



Cash flow from operating activities			16,507		17,513		32,954		46,261



Investing activities

Investments in property, plant and equipment	6		-849		-667		-2,630		-2,340

Sales of property, plant and equipment			56		14		192		116

Acquisitions/divestments of subsidiaries and other operations, net			338		-95		10,539		-311

Product development	6		-352		-323		-1,138		-1,300

Purchase of interest-bearing securities			-10,310		-6,642		-38,758		-19,622

Sales of interest-bearing securities			4,867		2,605		16,688		11,247

Other investing activities			1,216		-3,219		3,670		-3,742

Cash flow from investing activities			-5,034		-8,327		-11,437		-15,952



Financing activities

Proceeds from issuance of borrowings			200		485		398		3,615

Repayment of borrowings			-3,001		-373		-3,538		-15,917

Sale of own shares			6		-		6		-

Dividends paid			-4,734		-4,514		-9,545		-9,233

Repayment of lease liabilities			-461		-626		-2,115		-2,492

Other financing activities			-853		-419		571		162

Cash flow from financing activities			-8,843		-5,447		-14,223		-23,865



Effect of exchange rate changes on cash			-1,399		2,823		-7,253		2,251



Net change in cash and cash equivalents			1,231		6,562		41		8,695



Cash and cash equivalents, beginning of period			42,695		37,323		43,885		35,190



Cash and cash equivalents, end of period			43,926		43,885		43,926		43,885



22	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Financial statements

Condensed consolidated statement of changes in equity



	Jan-Dec

SEK million	2025		2024

Opening balance		92,983		97,408

Total comprehensive income		26,523		4,715

Sale/repurchase of own shares		-116		-21

Share issue, net		116		21

Long-term variable compensation plans		179		93

Dividends to shareholders		-9,545		-9,233

Transactions with non-controlling interests		124		-

Closing balance		110,264		92,983

Condensed consolidated income statement – isolated quarters



	2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

Cost of sales		-36,580		-29,462		-29,483		-28,488		-40,206		-33,609		-34,033		-30,667

Gross income		32,705		26,777		26,649		26,537		32,707		28,185		25,815		22,658

Research and development expenses ¹⁾		-13,098		-11,510		-12,212		-12,032		-13,877		-13,140		-14,926		-11,571

Selling and administrative expenses ¹⁾		-8,971		-7,913		-8,180		-8,621		-10,512		-9,380		-23,074		-8,691

Impairment reversals/losses on trade receivables		127		46		34		32		-2		78		-84		-257

Operating expenses		-21,942		-19,377		-20,358		-20,621		-24,391		-22,442		-38,084		-20,519

Other operating income and expenses ²⁾		420		7,715		67		8		-50		4		-1,299		1,975

Share of earnings of associated companies		-22		36		33		7		-308		27		49		-14

Earnings (loss) before financial items and income tax (EBIT)		11,161		15,151		6,391		5,931		7,958		5,774		-13,519		4,100

Financial income and expenses, net		-80		-212		34		-74		-391		-501		-361		-471

Income (loss) after financial items		11,081		14,939		6,425		5,857		7,567		5,273		-13,880		3,629

Income tax ¹⁾		-2,510		-3,639		-1,799		-1,640		-2,688		-1,392		2,881		-1,016

Net income (loss)		8,571		11,300		4,626		4,217		4,879		3,881		-10,999		2,613



Net income (loss) attributable to:

Owners of the Parent Company		8,563		11,149		4,567		4,149		4,779		3,814		-11,132		2,559

Non-controlling interests		8		151		59		68		100		67		133		54

Other information

Average number of shares, basic (million)		3,333		3,333		3,333		3,333		3,333		3,333		3,332		3,331

Earnings (loss) per share, basic (SEK) ³⁾		2.57		3.34		1.37		1.25		1.44		1.14		-3.34		0.77

Earnings (loss) per share, diluted (SEK) ^{3) 4)}		2.57		3.33		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⁾	Q4 2025 includes one divestment of a minority interest. Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv. 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.



23	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Financial statements

Condensed consolidated statement of cash flows – isolated quarters



			2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Operating activities

Net income (loss)		8,571		11,300		4,626		4,217		4,879		3,881		-10,999		2,613

Adjustments for

Taxes		2,724		3,647		1,949		1,754		2,563		1,397		-2,693		1,273

Earnings/dividends in associated companies		27		50		-22		2		387		110		-41		3

Depreciation, amortization and impairment losses		2,185		2,129		2,177		2,750		2,815		2,292		18,015		2,612

Other		-735		-7,549		-410		115		528		592		424		340

		12,772		9,577		8,320		8,838		11,172		8,272		4,706		6,841



Changes in operating net assets

Inventories		3,667		-680		210		-2,268		2,876		1,358		3,239		2,735

Customer finance, current and non-current		406		372		391		1,864		-225		1,211		-365		2,134

Trade receivables and contract assets		-3,288		-889		188		-312		-3,041		3,524		1,857		236

Trade payables		1,568		1,102		-636		-1,572		2,580		-3		1,941		-4,022

Provisions and post-employment benefits		1,743		-565		-298		-2,315		958		955		304		-2,270

Contract liabilities		-2,913		-2,869		-1,329		8,596		-407		-117		-1,398		6,520

Other operating assets and liabilities, net		5,175		3,047		-1,187		-6,830		5,088		859		890		-4,600

		6,358		-482		-2,661		-2,837		7,829		7,787		6,468		733



Interest received		716		433		458		676		518		506		385		391

Interest paid		-407		-328		-699		-771		-543		-526		-677		-1,297

Taxes paid		-2,932		-1,261		-1,268		-1,548		-1,463		-1,642		-1,606		-1,593



Cash flow from operating activities		16,507		7,939		4,150		4,358		17,513		14,397		9,276		5,075



Investing activities

Investments in property, plant and equipment		-849		-491		-561		-729		-667		-540		-699		-434

Sales of property, plant and equipment		56		57		40		39		14		36		42		24

Acquisitions/divestments of subs. and other operations, net		338		10,064		141		-4		-95		-62		-48		-106

Product development		-352		-286		-193		-307		-323		-264		-327		-386

Purchase of interest-bearing securities		-10,310		-9,633		-12,295		-6,520		-6,642		-5,517		-5,845		-1,618

Sales of interest-bearing securities		4,867		3,549		2,568		5,704		2,605		4,937		1,501		2,204

Other investing activities		1,216		-106		-562		3,122		-3,219		1,113		-611		-1,025

Cash flow from investing activities		-5,034		3,154		-10,862		1,305		-8,327		-297		-5,987		-1,341



Financing activities

Proceeds from issuance of borrowings		200		-		198		-		485		1,161		2		1,967

Repayment of borrowings		-3,001		-26		-432		-79		-373		-5,127		-16		-10,401

Sale of own shares		6		-		-		-		-		-		-		-

Dividends paid		-4,734		-1		-4,810		-		-4,514		-8		-4,711		-

Repayment of lease liabilities		-461		-507		-554		-593		-626		-607		-658		-601

Other financing activities		-853		-643		2,127		-60		-419		356		-313		538

Cash flow from financing activities		-8,843		-1,177		-3,471		-732		-5,447		-4,225		-5,696		-8,497



Effect of exchange rate changes on cash		-1,399		-841		-787		-4,226		2,823		-1,288		-705		1,421



Net change in cash and cash equivalents		1,231		9,075		-10,970		705		6,562		8,587		-3,112		-3,342



Cash and cash equivalents, beginning of period		42,695		33,620		44,590		43,885		37,323		28,736		31,848		35,190



Cash and cash equivalents, end of period		43,926		42,695		33,620		44,590		43,885		37,323		28,736		31,848



24	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Financial statements

Condensed Parent Company income statement


	Q4				Jan-Dec

SEK million	2025		2024		2025		2024

Net sales		-		-		-		-

Cost of sales		-		-		-		-

Gross income		-		-		-		-

Operating expenses		-455		-337		-1,692		-1,320

Other operating income and expenses		644		582		2,600		4,827

EBIT		189		245		908		3,507

Financial net		2,259		10,411		30,408		3,138

Income after financial items		2,448		10,656		31,316		6,645

Transfers to (-) / from untaxed reserves		-528		-2,415		-528		-2,415

Income tax		15		180		-499		-488

Net income		1,935		8,421		30,289		3,742

Condensed Parent Company statement of comprehensive income

Jan-Dec

SEK million

2025

2024

2025

2024

Net income

1,935

8,421

30,289

3,742

Other comprehensive income, net of tax

Total comprehensive income

1,935

8,421

30,289

3,742



25	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Financial statements

Condensed Parent Company balance sheet



SEK million	Dec 31 2025		Dec 31 2024

Assets

Fixed assets

Intangible assets		151		160

Tangible assets		300		295

Financial assets ¹⁾		135,029		121,721

		135,480		122,176

Current assets

Receivables		19,323		19,876

Short-term investments		12,651		12,222

Cash and cash equivalents		27,807		27,073

		59,781		59,171

Total assets		195,261		181,347



Stockholders’ equity, provisions and liabilities

Equity

Restricted equity		48,351		48,235

Non-restricted equity		43,051		22,335

		91,402		70,570



Provisions		60		144

Non-current liabilities		29,164		31,884

Current liabilities		74,635		78,749

Total stockholders’ equity, provisions and liabilities		195,261		181,347

¹⁾ Of which interest-bearing securities, non-current		37,298		19,439



26	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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 December 31, 2025, has been prepared in accordance with International Accounting Standard IAS 34 “Interim Financial Reporting”. The term “IFRS Accounting Standards” used in this document refers to IFRS^® Accounting standards as issued by the International Accounting Standards Board (IASB) 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 Accounting 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.



27	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Accounting policies and Explanatory notes

Note 2 – Segment information

Net sales by segment by quarter



	2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		44,200		35,424		35,747		35,643		46,797		40,016		37,679		33,715

Of which Products		33,275		26,531		27,622		28,060		36,592		31,242		28,583		25,397

Of which Services		10,925		8,893		8,125		7,583		10,205		8,774		9,096		8,318

Cloud Software and Services		20,031		15,346		14,363		12,975		19,457		14,953		15,180		13,045

Of which Products		8,459		5,431		5,407		4,719		7,826		5,240		4,814		4,529

Of which Services		11,572		9,915		8,956		8,256		11,631		9,713		10,366		8,516

Enterprise		4,578		5,058		5,548		5,933		6,090		6,319		6,484		5,970

Other		476		411		474		474		569		506		505		595

Total		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325



	2025								2024

Sequential change, percent	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		25%		-1%		0%		-24%		17%		6%		12%		-25%

Of which Products		25%		-4%		-2%		-23%		17%		9%		13%		-27%

Of which Services		23%		9%		7%		-26%		16%		-4%		9%		-19%

Cloud Software and Services		31%		7%		11%		-33%		30%		-1%		16%		-33%

Of which Products		56%		0%		15%		-40%		49%		9%		6%		-36%

Of which Services		17%		11%		8%		-29%		20%		-6%		22%		-32%

Enterprise		-9%		-9%		-6%		-3%		-4%		-3%		9%		-11%

Other		16%		-13%		0%		-17%		12%		0%		-15%		-5%

Total		23%		0%		2%		-25%		18%		3%		12%		-26%



	2025								2024

Year over year change, percent	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		-6%		-11%		-5%		6%		4%		-4%		-11%		-21%

Of which Products		-9%		-15%		-3%		10%		5%		-2%		-13%		-21%

Of which Services		7%		1%		-11%		-9%		-1%		-10%		-6%		-19%

Cloud Software and Services		3%		3%		-5%		-1%		-1%		-4%		0%		-3%

Of which Products		8%		4%		12%		4%		11%		5%		-7%		2%

Of which Services		-1%		2%		-14%		-3%		-7%		-8%		4%		-5%

Enterprise		-25%		-20%		-14%		-1%		-9%		-5%		2%		0%

Other		-16%		-19%		-6%		-20%		-9%		-28%		-2%		-14%

Total		-5%		-9%		-6%		3%		1%		-4%		-7%		-15%



	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		151,014		106,814		71,390		35,643		158,207		111,410		71,394		33,715

Of which Products		115,488		82,213		55,682		28,060		121,814		85,222		53,980		25,397

Of which Services		35,526		24,601		15,708		7,583		36,393		26,188		17,414		8,318

Cloud Software and Services		62,715		42,684		27,338		12,975		62,635		43,178		28,225		13,045

Of which Products		24,016		15,557		10,126		4,719		22,409		14,583		9,343		4,529

Of which Services		38,699		27,127		17,212		8,256		40,226		28,595		18,882		8,516

Enterprise		21,117		16,539		11,481		5,933		24,863		18,773		12,454		5,970

Other		1,835		1,359		948		474		2,175		1,606		1,100		595

Total		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325



	2025								2024

Year over year change, percent	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		-5%		-4%		0%		6%		-8%		-12%		-16%		-21%

Of which Products		-5%		-4%		3%		10%		-7%		-12%		-17%		-21%

Of which Services		-2%		-6%		-10%		-9%		-9%		-12%		-13%		-19%

Cloud Software and Services		0%		-1%		-3%		-1%		-2%		-2%		-1%		-3%

Of which Products		7%		7%		8%		4%		3%		0%		-3%		2%

Of which Services		-4%		-5%		-9%		-3%		-4%		-3%		0%		-5%

Enterprise		-15%		-12%		-8%		-1%		-3%		-1%		1%		0%

Other		-16%		-15%		-14%		-20%		-14%		-16%		-9%		-14%

Total		-5%		-4%		-2%		3%		-6%		-9%		-11%		-15%



28	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Accounting policies and Explanatory notes



Gross income by segment by quarter

	2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		21,648		17,705		17,638		18,112		22,326		19,332		17,139		14,851

Cloud Software and Services		8,636		6,463		5,964		5,069		7,243		5,537		5,407		4,834

Enterprise		2,386		2,609		3,045		3,338		3,306		3,307		3,310		2,865

Other		35		0		2		18		-168		9		-41		108

Total		32,705		26,777		26,649		26,537		32,707		28,185		25,815		22,658



	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		75,103		53,455		35,750		18,112		73,648		51,322		31,990		14,851

Cloud Software and Services		26,132		17,496		11,033		5,069		23,021		15,778		10,241		4,834

Enterprise		11,378		8,992		6,383		3,338		12,788		9,482		6,175		2,865

Other		55		20		20		18		-92		76		67		108

Total		112,668		79,963		53,186		26,537		109,365		76,658		48,473		22,658



EBIT (loss) by segment by quarter

	2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		9,318		7,075		6,376		7,040		9,267		7,492		4,750		4,156

Cloud Software and Services		3,364		1,721		840		71		1,099		-443		-728		-363

Enterprise		-1,526		6,649		-870		-1,014		-1,876		-1,201		-17,424		-1,582

Other		5		-294		45		-166		-532		-74		-117		1,889

Total		11,161		15,151		6,391		5,931		7,958		5,774		-13,519		4,100



	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		29,809		20,491		13,416		7,040		25,665		16,398		8,906		4,156

Cloud Software and Services		5,996		2,632		911		71		-435		-1,534		-1,091		-363

Enterprise		3,239		4,765		-1,884		-1,014		-22,083		-20,207		-19,006		-1,582

Other		-410		-415		-121		-166		1,166		1,698		1,772		1,889

Total		38,634		27,473		12,322		5,931		4,313		-3,645		-9,419		4,100



29	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Accounting policies and Explanatory notes



Net sales by market area by quarter *

	2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Americas		22,928		19,837		19,809		20,859		25,836		23,484		19,902		16,519

Europe, Middle East and Africa ^{1) 2)}		23,350		16,730		16,193		14,475		21,865		16,893		17,265		15,287

South East Asia, Oceania and India		8,986		7,097		5,505		7,226		8,449		7,702		7,694		8,565

North East Asia		5,205		3,825		3,766		3,215		7,090		3,686		4,561		3,424

Other ¹⁾ ²⁾		8,816		8,750		10,859		9,250		9,673		10,029		10,426		9,530

Total		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

¹⁾ Of which in Sweden		1,374		863		686		461		597		432		583		729

²⁾ Of which in EU		10,663		8,213		8,223		7,566		10,935		8,157		8,606		7,566



	2025								2024

Sequential change, percent	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Americas		16%		0%		-5%		-19%		10%		18%		20%		-11%

Europe, Middle East and Africa ^{1) 2)}		40%		3%		12%		-34%		29%		-2%		13%		-33%

South East Asia, Oceania and India		27%		29%		-24%		-14%		10%		0%		-10%		-27%

North East Asia		36%		2%		17%		-55%		92%		-19%		33%		-62%

Other ^{1) 2)}		1%		-19%		17%		-4%		-4%		-4%		9%		-1%

Total		23%		0%		2%		-25%		18%		3%		12%		-26%

¹⁾ Of which in Sweden		59%		26%		49%		-23%		38%		-26%		-20%		115%

²⁾ Of which in EU		30%		0%		9%		-31%		34%		-5%		14%		-25%



	2025								2024

Year over year change, percent	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Americas		-11%		-16%		0%		26%		38%		37%		11%		-17%

Europe, Middle East and Africa ^{1) 2)}		7%		-1%		-6%		-5%		-4%		-8%		-3%		-1%

South East Asia, Oceania and India		6%		-8%		-28%		-16%		-28%		-44%		-44%		-38%

North East Asia		-27%		4%		-17%		-6%		-22%		-31%		-10%		-22%

Other ^{1) 2)}		-9%		-13%		4%		-3%		1%		1%		7%		6%

Total		-5%		-9%		-6%		3%		1%		-4%		-7%		-15%

¹⁾ Of which in Sweden		130%		100%		18%		-37%		76%		-5%		58%		19%

²⁾ Of which in EU		-2%		1%		-4%		0%		8%		4%		7%		-8%



	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Americas		83,433		60,505		40,668		20,859		85,741		59,905		36,421		16,519

Europe, Middle East and Africa ^{1) 2)}		70,748		47,398		30,668		14,475		71,310		49,445		32,552		15,287

South East Asia, Oceania and India		28,814		19,828		12,731		7,226		32,410		23,961		16,259		8,565

North East Asia		16,011		10,806		6,981		3,215		18,761		11,671		7,985		3,424

Other ^{1) 2)}		37,675		28,859		20,109		9,250		39,658		29,985		19,956		9,530

Total		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

¹⁾ Of which in Sweden		3,384		2,010		1,147		461		2,341		1,744		1,312		729

²⁾ Of which in EU		34,665		24,002		15,789		7,566		35,264		24,329		16,172		7,566



	2025								2024

Year to date, year over year change, percent	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Americas		-3%		1%		12%		26%		16%		9%		-4%		-17%

Europe, Middle East and Africa ^{1) 2)}		-1%		-4%		-6%		-5%		-4%		-4%		-2%		-1%

South East Asia, Oceania and India		-11%		-17%		-22%		-16%		-39%		-42%		-41%		-38%

North East Asia		-15%		-7%		-13%		-6%		-22%		-21%		-15%		-22%

Other ^{1) 2)}		-5%		-4%		1%		-3%		4%		4%		6%		6%

Total		-5%		-4%		-2%		3%		-6%		-9%		-11%		-15%

¹⁾ Of which in Sweden		45%		15%		-13%		-37%		32%		22%		34%		19%

²⁾ Of which in EU		-2%		-1%		-2%		0%		3%		1%		-1%		-8%

^*Q1-Q3 2025 and 2024 have been restated to reflect changes in the market area structure. On February 25, 2025, the new market area structure was announced, and during Q4 2025 one additional country was added to Americas.



30	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Accounting policies and Explanatory notes

Net sales by market area by segment


	Q4 2025										Jan-Dec 2025

SEK million	Networks		Cloud Software and Services		Enterprise		Other		Total		Networks		Cloud Software and Services		Enterprise		Other		Total

Americas		17,058		5,679		192		-1		22,928		64,700		18,248		486		-1		83,433

Europe, Middle East and Africa		14,486		8,618		246		0		23,350		42,485		27,387		876		0		70,748

South East Asia, Oceania and India		5,973		3,003		10		0		8,986		19,269		9,499		46		0		28,814

North East Asia		3,327		1,876		2		0		5,205		11,691		4,308		12		0		16,011

Other ¹		3,356		855		4,128		477		8,816		12,869		3,273		19,697		1,836		37,675

Total		44,200		20,031		4,578		476		69,285		151,014		62,715		21,117		1,835		236,681

Share of total		64%		29%		7%		0%		100%		64%		26%		9%		1%		100%

¹⁾ Includes primarily IPR licensing revenues and a major part of segment Enterprise.
											Q4 2025

Sequential change, percent											Networks		Cloud Software and Services		Enterprise		Other		Total

Americas												12%		25%		123%		-		16%

Europe, Middle East and Africa												46%		30%		45%		-		40%

South East Asia, Oceania and India												34%		14%		11%		-		27%

North East Asia												9%		140%		100%		-		36%

Other												19%		16%		-14%		16%		1%

Total												25%		31%		-9%		16%		23%


	Q4 2025										Jan-Dec 2025

Year over year change, percent	Networks		Cloud Software and Services		Enterprise		Other		Total		Networks		Cloud Software and Services		Enterprise		Other		Total

Americas		-13%		-4%		-27%		-		-11%		-3%		-2%		-21%		-101%		-3%

Europe, Middle East and Africa		11%		0%		-6%		-		7%		0%		-1%		-7%		-100%		-1%

South East Asia, Oceania and India		4%		11%		-38%		-		6%		-17%		4%		24%		-		-11%

North East Asia		-40%		24%		-75%		-100%		-27%		-19%		4%		-33%		-100%		-15%

Other		19%		13%		-26%		-13%		-9%		13%		8%		-15%		-7%		-5%

Total		-6%		3%		-25%		-16%		-5%		-5%		0%		-15%		-16%		-5%



31	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Accounting policies and Explanatory notes



Top 5 countries in sales

	2025								2024

Country, percentage of net sales¹⁾	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

United States		36%		40%		44%		45%		39%		44%		38%		37%

India		5%		5%		4%		7%		4%		5%		6%		10%

United Kingdom		4%		4%		4%		4%		4%		4%		3%		4%

Japan		4%		3%		4%		3%		4%		3%		6%		4%

China		3%		3%		3%		3%		5%		3%		3%		3%


	2025								2024

Country, percentage of net sales¹⁾	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

United States		41%		43%		44%		45%		40%		40%		38%		37%

India		5%		5%		6%		7%		6%		7%		8%		10%

United Kingdom		4%		4%		4%		4%		4%		3%		3%		4%

Japan		4%		4%		4%		3%		4%		4%		5%		4%

China		3%		3%		3%		3%		4%		3%		3%		3%

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

IPR licensing revenues by segment by quarter

	2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		2,733		2,569		3,987		2,606		2,870		2,853		3,187		2,539

Cloud Software and Services		600		564		875		572		630		626		700		557

Total		3,333		3,133		4,862		3,178		3,500		3,479		3,887		3,096


	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		11,895		9,162		6,593		2,606		11,449		8,579		5,726		2,539

Cloud Software and Services		2,611		2,011		1,447		572		2,513		1,883		1,257		557

Total		14,506		11,173		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Financial income		620		662		579		619		587		724		742		681

Financial expenses		-580		-735		-927		-805		-984		-991		-1,029		-1,099

Net foreign exchange gains/losses		-120		-139		382		112		6		-234		-74		-53

Total		-80		-212		34		-74		-391		-501		-361		-471


	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Financial income		2,480		1,860		1,198		619		2,734		2,147		1,423		681

Financial expenses		-3,047		-2,467		-1,732		-805		-4,103		-3,119		-2,128		-1,099

Net foreign exchange gains/losses		235		355		494		112		-355		-361		-127		-53

Total		-332		-252		-40		-74		-1,724		-1,333		-832		-471



32	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Accounting policies and Explanatory notes

Note 4 – Provisions



Provisions
	2025								2024

Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Opening balance		7,823		8,652		9,093		11,715		10,544		10,200		10,065		11,706

Additions		3,005		847		1,830		1,055		3,329		2,761		2,472		783

Utilization		-1,605		-1,311		-1,853		-3,009		-1,830		-1,872		-1,448		-2,140

Of which restructuring		-721		-813		-837		-1,201		-1,201		-1,286		-755		-932

Reversal of excess amounts		-357		-370		-273		-256		-651		-333		-411		-364

Reclassification, translation difference and other		-182		5		-145		-412		323		-212		-478		80

Closing balance		8,684		7,823		8,652		9,093		11,715		10,544		10,200		10,065

Of which restructuring		1,889		1,710		2,429		2,720		3,872		3,897		3,757		2,953


	2025								2024

Year to date, SEK million		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Opening balance		11,715		11,715		11,715		11,715		11,706		11,706		11,706		11,706

Additions		6,737		3,732		2,885		1,055		9,345		6,016		3,255		783

Utilization		-7,778		-6,173		-4,862		-3,009		-7,290		-5,460		-3,588		-2,140

Of which restructuring		-3,572		-2,851		-2,038		-1,201		-4,174		-2,973		-1,687		-932

Reversal of excess amounts		-1,256		-899		-529		-256		-1,759		-1,108		-775		-364

Reclassification, translation difference and other		-734		-552		-557		-412		-287		-610		-398		80

Closing balance		8,684		7,823		8,652		9,093		11,715		10,544		10,200		10,065

Of which restructuring		1,889		1,710		2,429		2,720		3,872		3,897		3,757		2,953



33	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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			Dec 31 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⁾		1.1		-		-		1.1		4.5		-		-		4.5

Interest-bearing securities		49.9		45.4		4.5		-		31.7		30.4		1.3		-

Cash equivalents ²⁾		25.3		-		25.3		-		24.3		0.3		24.0		-

Other financial assets		1.9		-		-		1.9		2.7		0.8		-		1.9

Other current assets		2.9		-		2.9		-		0.2		-		0.2		-



Assets at fair value through OCI

Trade receivables		40.3		-		-		40.3		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		121.6								108.2



Financial liabilities at designated FVTPL

Parent company borrowings		-29.6		-18.8		-10.8		-		-35.7		-19.7		-16.0		-



Financial liabilities at FVTPL

Other current liabilities		-0.2		-		-0.2		-		-3.3		-		-3.3		-



Liabilities at amortized cost

Trade payables		-26.3		-		-		-		-30.2		-		-		-

Borrowings		-3.1		-		-		-		-2.3		-		-		-

Total financial liabilities		-59.2								-71.5

¹⁾ Year to date movements of customer finance receivables are as follows: additions of SEK 18.1 billion, disposals and repayments of SEK 21.2 billion and revaluation loss of SEK 0.3 billion.

²⁾ Total Cash and cash equivalent is SEK 43.9 (43.9) billion, of which SEK 25.3 (24.3) billion relating to Cash equivalents are presented in the table above.

	$		$

Exchange rates used in the consolidation

	Jan-Dec

	2025		2024

SEK/EUR - closing rate		10.82		11.49

SEK/USD - closing rate		9.19		10.99



34	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Additions

Property, plant and equipment		849		491		561		729		667		540		699		434

Capitalized development expenses		352		286		193		307		323		264		327		386

IPR, brands and other intangible assets		48		81		301		57		93		78		45		1

Total		1,249		858		1,055		1,093		1,083		882		1,071		821

Depreciation, amortization and impairment losses

Property, plant and equipment		814		812		826		1,029		1,117		924		1,161		941

Capitalized development expenses		446		449		451		444		409		410		349		312

Goodwill, IPR, brands and other intangible assets		439		365		373		721		666		429		15,945		793

Right-of-use assets		486		503		527		556		623		529		560		566

Total		2,185		2,129		2,177		2,750		2,815		2,292		18,015		2,612



	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Additions

Property, plant and equipment		2,630		1,781		1,290		729		2,340		1,673		1,133		434

Capitalized development expenses		1,138		786		500		307		1,300		977		713		386

IPR, brands and other intangible assets		487		439		358		57		217		124		46		1

Total		4,255		3,006		2,148		1,093		3,857		2,774		1,892		821

Depreciation, amortization and impairment losses

Property, plant and equipment		3,481		2,667		1,855		1,029		4,143		3,026		2,102		941

Capitalized development expenses		1,790		1,344		895		444		1,480		1,071		661		312

Goodwill, IPR, brands and other intangible assets		1,898		1,459		1,094		721		17,833		17,167		16,738		793

Right-of-use assets		2,072		1,586		1,083		556		2,278		1,655		1,126		566

Total		9,241		7,056		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

	Dec 31		Dec 31

SEK million	2025		2024

Contingent liabilities		4,091		3,559

Assets pledged as collateral		8,695		9,438



35	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Accounting policies and Explanatory notes

Note 8 – Share information



Number of shares and earnings per share

	Q4				Jan-Dec

	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)		3,342		3,339		3,342		3,339

Average number of treasury shares (million)		38		16		31		15

Average number of shares outstanding, basic (million)		3,333		3,333		3,333		3,332

Average number of shares outstanding, diluted (million) ¹⁾		3,342		3,339		3,342		3,339

Earnings per share, basic (SEK) ²⁾		2.57		1.44		8.53		0.01

Earnings per share, diluted (SEK) ¹⁾		2.57		1.44		8.51		0.01

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 was 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 was made with the record date September 29, 2025, with a payment date of October 2, 2025.

Note 9 – Employee information



Number of employees

	2025								2024 ²⁾

End of period	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31

Americas		15,050		15,346		15,926		15,857		16,034		16,554		16,791		17,051

Europe, Middle East and Africa ¹⁾		39,045		39,489		40,413		40,677		41,387		41,993		43,017		42,989

South East Asia, Oceania and India		25,189		25,358		25,591		25,991		26,389		26,327		26,558		27,016

North East Asia		9,542		9,705		10,007		10,341		10,426		11,110		11,619		12,084

Total		88,826		89,898		91,937		92,866		94,236		95,984		97,985		99,140

¹⁾ Of which in Sweden		12,806		12,967		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.

Note 10 – Information on non-adjusting event

On January 15, 2026, Ericsson announced a proposed headcount reduction in Sweden. Ericsson has submitted a notice to the Swedish Public Employment Service. Approximately 1,600 positions could be impacted in Sweden.



36	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Reported net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

Acquired business		-		-		-		-		-		-		-		-

Net FX impact		6,801		4,213		4,672		-1,817		683		1,832		22		740

Comparable net sales, excluding FX impact		76,086		60,452		60,804		53,208		73,596		63,626		59,870		54,065

Comparable quarter net sales adj. for acq/div business		71,474		61,794		59,848		53,325		71,881		64,473		64,444		62,553

Organic sales growth (%)		6%		-2%		2%		0%		2%		-1%		-7%		-14%



	2025								2024

Year to date, year over year change	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Reported net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

Acquired business		-		-		-		-		-		-		-		-

Net FX impact		13,869		7,068		2,855		-1,817		3,277		2,594		762		740

Comparable net sales, excluding FX impact		250,550		174,464		114,012		53,208		251,157		177,561		113,935		54,065

Comparable quarter net sales adj. for acq/div business		246,441		174,967		113,173		53,325		263,351		191,470		126,997		62,553

Organic sales growth (%)		2%		0%		1%		0%		-5%		-7%		-10%		-14%



37	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Gross income		32,705		26,777		26,649		26,537		32,707		28,185		25,815		22,658

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

Gross margin (%)		47.2%		47.6%		47.5%		48.2%		44.9%		45.6%		43.1%		42.5%



Gross income		32,705		26,777		26,649		26,537		32,707		28,185		25,815		22,658

Restructuring charges included in cost of sales		538		271		310		158		1,034		424		466		122

Adjusted gross income		33,243		27,048		26,959		26,695		33,741		28,609		26,281		22,780

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

Adjusted gross margin (%)		48.0%		48.1%		48.0%		48.5%		46.3%		46.3%		43.9%		42.7%



Operating expenses		-21,942		-19,377		-20,358		-20,621		-24,391		-22,442		-38,084		-20,519

Restructuring charges included in R&D expenses		300		-41		300		20		358		966		805		-10

Restructuring charges included in selling and administrative expenses		259		73		46		103		234		163		357		93

Operating expenses excluding restructuring charges		-21,383		-19,345		-20,012		-20,498		-23,799		-21,313		-36,922		-20,436



EBIT (loss)		11,161		15,151		6,391		5,931		7,958		5,774		-13,519		4,100

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

EBIT margin (%)		16.1%		26.9%		11.4%		10.8%		10.9%		9.3%		-22.6%		7.7%



EBIT (loss)		11,161		15,151		6,391		5,931		7,958		5,774		-13,519		4,100

Total restructuring charges		1,097		303		656		281		1,626		1,553		1,628		205

Adjusted EBIT (loss)		12,258		15,454		7,047		6,212		9,584		7,327		-11,891		4,305

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

Adjusted EBIT margin (%)		17.7%		27.5%		12.6%		11.3%		13.1%		11.9%		-19.9%		8.1%



Adjusted EBIT (loss)		12,258		15,454		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		12,258		15,454		7,047		6,212		9,797		7,327		3,229		4,305

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)		17.7%		27.5%		12.6%		11.3%		13.4%		11.9%		5.4%		8.1%



	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Gross income		112,668		79,963		53,186		26,537		109,365		76,658		48,473		22,658

Net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

Gross margin (%)		47.6%		47.8%		47.8%		48.2%		44.1%		43.8%		42.8%		42.5%



Gross income		112,668		79,963		53,186		26,537		109,365		76,658		48,473		22,658

Restructuring charges included in cost of sales		1,277		739		468		158		2,046		1,012		588		122

Adjusted gross income		113,945		80,702		53,654		26,695		111,411		77,670		49,061		22,780

Net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

Adjusted gross margin (%)		48.1%		48.2%		48.3%		48.5%		44.9%		44.4%		43.4%		42.7%



Operating expenses		-82,298		-60,356		-40,979		-20,621		-105,436		-81,045		-58,603		-20,519

Restructuring charges included in R&D expenses		579		279		320		20		2,119		1,761		795		-10

Restructuring charges included in selling and administrative expenses		481		222		149		103		847		613		450		93

Operating expenses excluding restructuring charges		-81,238		-59,855		-40,510		-20,498		-102,470		-78,671		-57,358		-20,436



EBIT (loss)		38,634		27,473		12,322		5,931		4,313		-3,645		-9,419		4,100

Net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

EBIT margin (%)		16.3%		16.4%		11.1%		10.8%		1.7%		-2.1%		-8.3%		7.7%



EBIT (loss)		38,634		27,473		12,322		5,931		4,313		-3,645		-9,419		4,100

Total restructuring charges		2,337		1,240		937		281		5,012		3,386		1,833		205

Adjusted EBIT (loss)		40,971		28,713		13,259		6,212		9,325		-259		-7,586		4,305

Net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

Adjusted EBIT margin (%)		17.3%		17.2%		11.9%		11.3%		3.8%		-0.1%		-6.7%		8.1%



Adjusted EBIT (loss)		40,971		28,713		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		40,971		28,713		13,259		6,212		24,658		14,861		7,534		4,305

Net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%)		17.3%		17.2%		11.9%		11.3%		9.9%		8.5%		6.7%		8.1%



38	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures

EBITA and EBITA margin / Adjusted EBITA and Adjusted 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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Net income (loss)		8,571		11,300		4,626		4,217		4,879		3,881		-10,999		2,613
Income tax		2,510		3,639		1,799		1,640		2,688		1,392		-2,881		1,016

Financial income and expenses, net		80		212		-34		74		391		501		361		471

Amortizations and write-downs of acquired intangibles		440		365		372		721		665		429		15,945		793

Of which segment Enterprise		406		338		346		389		549		378		15,916		762

EBITA		11,601		15,516		6,763		6,652		8,623		6,203		2,426		4,893

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

EBITA margin (%)		16.7%		27.6%		12.0%		12.1%		11.8%		10.0%		4.1%		9.2%

Restructuring charges		1,097		303		656		281		1,626		1,553		1,628		205

Adjusted EBITA		12,698		15,819		7,419		6,933		10,249		7,756		4,054		5,098

Adjusted EBITA margin (%)		18.3%		28.1%		13.2%		12.6%		14.1%		12.6%		6.8%		9.6%



	2025								2024

Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Net income (loss)		28,714		20,143		8,843		4,217		374		-4,505		-8,386		2,613
Income tax		9,588		7,078		3,439		1,640		2,215		-473		-1,865		1,016

Financial income and expenses, net		332		252		40		74		1,724		1,333		832		471

Amortizations and write-downs of acquired intangibles		1,898		1,458		1,093		721		17,832		17,167		16,738		793

Of which segment Enterprise		1,479		1,073		735		389		17,605		17,056		16,678		762

EBITA		40,532		28,931		13,415		6,652		22,145		13,522		7,319		4,893

Net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

EBITA margin (%)		17.1%		17.3%		12.1%		12.1%		8.9%		7.7%		6.5%		9.2%

Restructuring charges		2,337		1,240		937		281		5,012		3,386		1,833		205

Adjusted EBITA		42,869		30,171		14,352		6,933		27,157		16,908		9,152		5,098

Adjusted EBITA margin (%)		18.1%		18.0%		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Net sales		236,681		240,309		245,864		249,580		247,880		246,848		249,527		254,123

EBITA		40,532		37,554		28,241		23,904		22,145		20,216		17,841		15,957

Restructuring charges		2,337		2,866		4,116		5,088		5,012		4,906		4,241		5,746

Adjusted EBITA		42,869		40,420		32,357		28,992		27,157		25,122		22,082		21,703

Adjusted EBITA margin (%)		18.1%		16.8%		13.2%		11.6%		11.0%		10.2%		8.8%		8.5%



39	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Cash and cash equivalents		43,926		42,695		33,620		44,590		43,885		37,323		28,736		31,848

+ Interest-bearing securities, current		12,715		8,345		6,790		5,147		12,546		10,063		13,838		8,948

+ Interest-bearing securities, non-current		37,298		37,370		32,859		24,436		19,440		14,806		11,146		11,177

Gross cash, end of period		93,939		88,410		73,269		74,173		75,871		62,192		53,720		51,973

- Borrowings, current		3,538		6,680		7,285		5,597		6,137		3,134		8,067		8,491

- Borrowings, non-current		29,165		29,872		29,944		29,929		31,904		33,524		32,520		32,675

Net cash, end of period		61,236		51,858		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Total assets		279,223		282,476		270,555		277,978		292,374		272,450		278,486		299,523

Less: Non-interest-bearing provisions and liabilities

Provisions, non-current		2,993		2,478		2,365		2,541		3,511		3,036		2,642		3,952

Deferred tax liabilities		152		1,349		1,390		1,365		1,295		1,255		1,295		3,999

Other non-current liabilities		1,292		899		870		888		996		889		865		839

Provisions, current		5,691		5,345		6,287		6,552		8,204		7,508		7,558		6,113

Contract liabilities		36,867		40,642		44,370		46,757		41,229		39,540		40,704		42,538

Trade payables		26,335		25,352		24,804		26,450		30,173		25,888		26,731		25,305

Current tax liabilities		2,679		6,069		3,609		2,664		3,322		3,821		3,710		3,810

Other current liabilities		34,038		34,605		32,521		41,655		40,677		36,903		38,485		35,786

Capital employed		169,176		165,737		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Net sales, rolling four quarters		236,681		240,309		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		162,967		153,610		156,496		177,181		177,965		170,926		197,676		195,403

Capital employed at end of period -3		149,106		162,967		153,610		156,496		177,181		177,965		170,926		197,676

Capital employed at end of period -2		154,339		149,106		162,967		153,610		156,496		177,181		177,965		170,926

Capital employed at end of period -1		165,737		154,339		149,106		162,967		153,610		156,496		177,181		177,965

Capital employed at end of period		169,176		165,737		154,339		149,106		162,967		153,610		156,496		177,181

Average capital employed, rolling five quarters		160,265		157,152		155,304		159,872		165,644		167,236		176,049		183,830

Capital turnover (times)		1.5		1.5		1.6		1.6		1.5		1.5		1.4		1.4



40	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

EBIT (loss), rolling four quarters		38,634		35,431		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		162,967		153,610		156,496		177,181		177,965		170,926		197,676		195,403

Capital employed at end of period -3		149,106		162,967		153,610		156,496		177,181		177,965		170,926		197,676

Capital employed at end of period -2		154,339		149,106		162,967		153,610		156,496		177,181		177,965		170,926

Capital employed at end of period -1		165,737		154,339		149,106		162,967		153,610		156,496		177,181		177,965

Capital employed at end of period		169,176		165,737		154,339		149,106		162,967		153,610		156,496		177,181

Average capital employed, rolling five quarters		160,265		157,152		155,304		159,872		165,644		167,236		176,049		183,830

Return on capital employed (%)		24.1%		22.5%		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Total equity		110,264		102,494		85,699		84,858		92,983		85,355		82,467		107,639

Total assets		279,223		282,476		270,555		277,978		292,374		272,450		278,486		299,523

Equity ratio (%)		39.5%		36.3%		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Net income (loss) attributable to owners of the Parent Company		8,563		11,149		4,567		4,149		4,779		3,814		-11,132		2,559

Annualized		34,252		44,596		18,268		16,596		19,116		15,256		-44,528		10,236

Average stockholders’ equity

Stockholders’ equity, beginning of period		102,658		86,748		86,039		94,284		86,630		83,840		109,137		98,673

Stockholders’ equity, end of period		109,535		102,658		86,748		86,039		94,284		86,630		83,840		109,137

Average stockholders’ equity		106,097		94,703		86,394		90,162		90,457		85,235		96,489		103,905

Return on equity (%)		32.3%		47.1%		21.1%		18.4%		21.1%		17.9%		-46.1%		9.9%


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Net income (loss) attributable to owners of the Parent Company		28,428		19,865		8,716		4,149		20		-4,759		-8,573		2,559

Annualized		28,428		26,487		17,432		16,596		20		-6,345		-17,146		10,236

Average stockholders’ equity

Stockholders’ equity, beginning of period		94,284		94,284		94,284		94,284		98,673		98,673		98,673		98,673

Stockholders’ equity, end of period		109,535		102,658		86,748		86,039		94,284		86,630		83,840		109,137

Average stockholders’ equity		101,910		98,471		90,516		90,162		96,479		92,652		91,257		103,905

Return on equity (%)		27.9%		26.9%		19.3%		18.4%		0.0%		-6.8%		-18.8%		9.9%



41	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	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	Dec 31		Sep 30		Jun 30		Mar 31		Dec 31		Sep 30		Jun 30		Mar 31

Inventories		23,451		27,519		27,068		27,649		27,125		29,004		30,897		34,564

Contract assets		7,333		7,494		6,618		5,735		6,924		7,568		6,851		6,715

Trade receivables		40,327		38,136		39,107		41,428		44,151		38,018		43,578		46,246

Customer finance, current		852		1,290		1,879		2,396		4,332		3,843		4,590		3,717

Customer finance, non-current		238		242		78		27		190		221		843		1,406

Advance payments to suppliers¹⁾		46		39		41		46		47		108		146		167

Prepaid expenses¹⁾		2,390		2,443		3,025		3,749		2,659		2,737		3,244		3,501

Less: Contract liabilities		36,867		40,642		44,370		46,757		41,229		39,540		40,704		42,538

Less: Trade payables		26,335		25,352		24,804		26,450		30,173		25,888		26,731		25,305

Operating working capital		11,435		11,169		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Cash flow from operating activities		16,507		7,939		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		-849		-491		-561		-729		-667		-540		-699		-434

Sales of property, plant and equipment		56		57		40		39		14		36		42		24

Product development		-352		-286		-193		-307		-323		-264		-327		-386

Other investments ¹⁾		-47		-81		-301		-64		-87		-78		-39		-7

Repayment of lease liabilities		-462		-507		-554		-593		-626		-607		-658		-601

Free cash flow before M&A		14,853		6,631		2,581		2,704		15,824		12,944		7,595		3,671

Acquisitions/divestments of subs and other operations, net		338		10,064		141		-4		-95		-62		-48		-106

Free cash flow after M&A		15,191		16,695		2,722		2,700		15,729		12,882		7,547		3,565

Net sales		69,285		56,239		56,132		55,025		72,913		61,794		59,848		53,325

Free cash flow before M&A (% of net sales)		21.4%		11.8%		4.6%		4.9%		21.7%		20.9%		12.7%		6.9%


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Cash flow from operating activities		32,954		16,447		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		-2,630		-1,781		-1,290		-729		-2,340		-1,673		-1,133		-434

Sales of property, plant and equipment		192		136		79		39		116		102		66		24

Product development		-1,138		-786		-500		-307		-1,300		-977		-713		-386

Other investments ¹⁾		-493		-446		-365		-64		-211		-124		-46		-7

Repayment of lease liabilities		-2,116		-1,654		-1,147		-593		-2,492		-1,866		-1,259		-601

Free cash flow before M&A		26,769		11,916		5,285		2,704		40,034		24,210		11,266		3,671

Acquisitions/divestments of subs and other operations, net		10,539		10,201		137		-4		-311		-216		-154		-106

Free cash flow after M&A		37,308		22,117		5,422		2,700		39,723		23,994		11,112		3,565

Net sales		236,681		167,396		111,157		55,025		247,880		174,967		113,173		53,325

Free cash flow before M&A (% of net sales)		11.3%		7.1%		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.



42	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures

Sales growth by segment adjusted for comparable units and currency


	2025								2024
Isolated quarter, year over year change, percent	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		4%		-5%		3%		3%		5%		-1%		-11%		-19%

Cloud Software and Services		12%		9%		1%		-3%		0%		-1%		0%		-2%

Enterprise		2%		-7%		-6%		-7%		-7%		-3%		0%		1%

Other		-10%		-15%		-1%		-23%		-10%		-26%		-5%		-14%

Total		6%		-2%		2%		0%		2%		-1%		-7%		-14%


	2025								2024
Year to date, year over year change, percent	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		1%		0%		3%		3%		-6%		-10%		-15%		-19%

Cloud Software and Services		6%		2%		-1%		-3%		-1%		-1%		-1%		-2%

Enterprise		-5%		-7%		-6%		-7%		-2%		-1%		1%		1%

Other		-13%		-14%		-13%		-23%		-15%		-16%		-10%		-14%

Total		2%		0%		1%		0%		-5%		-7%		-10%		-14%


Sales growth by market area adjusted for comparable units and currency *
	2025								2024
Isolated quarter, year over year change, percent	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Americas		-1%		-8%		10%		20%		40%		42%		10%		-16%

Europe, Middle East and Africa		13%		3%		-1%		-7%		-4%		-6%		-4%		-1%

South East Asia, Oceania and India		19%		1%		-22%		-17%		-28%		-43%		-44%		-37%

North East Asia		-16%		10%		-15%		-8%		-22%		-29%		-3%		-16%

Other		13%		-2%		15%		-6%		3%		5%		7%		8%

Total		6%		-2%		2%		0%		2%		-1%		-7%		-14%

	2025								2024
Year to date, year over year change, percent	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Americas		4%		6%		14%		20%		18%		10%		-4%		-16%

Europe, Middle East and Africa		3%		-2%		-4%		-7%		-4%		-4%		-3%		-1%

South East Asia, Oceania and India		-4%		-13%		-19%		-17%		-38%		-41%		-41%		-37%

North East Asia		-9%		-5%		-12%		-8%		-19%		-16%		-9%		-16%

Other		5%		3%		5%		-6%		6%		6%		7%		8%

Total		2%		0%		1%		0%		-5%		-7%		-10%		-14%

^*Q1-Q3 2025 and 2024 have been restated to reflect changes in the market area structure. On February 25, 2025, the new market area structure was announced, and during Q4 2025 one additional country was added to Americas.

Rolling four quarters of net sales by segment
	2025								2024
Rolling four quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		151,014		153,611		158,203		160,135		158,207		156,408		157,929		162,690

Cloud Software and Services		62,715		62,141		61,748		62,565		62,635		62,736		63,347		63,275

Enterprise		21,117		22,629		23,890		24,826		24,863		25,471		25,825		25,720

Other		1,835		1,928		2,023		2,054		2,175		2,233		2,426		2,438

Total		236,681		240,309		245,864		249,580		247,880		246,848		249,527		254,123



43	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures

Gross margin by segment by quarter


	2025								2024
Isolated quarters, as percentage of net sales	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		49.0%		50.0%		49.3%		50.8%		47.7%		48.3%		45.5%		44.0%

Cloud Software and Services		43.1%		42.1%		41.5%		39.1%		37.2%		37.0%		35.6%		37.1%

Enterprise		52.1%		51.6%		54.9%		56.3%		54.3%		52.3%		51.0%		48.0%

Other		7.4%		0.0%		0.4%		3.8%		-29.5%		1.8%		-8.1%		18.2%

Total		47.2%		47.6%		47.5%		48.2%		44.9%		45.6%		43.1%		42.5%

	2025								2024
Year to date, as percentage of net sales	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		49.7%		50.0%		50.1%		50.8%		46.6%		46.1%		44.8%		44.0%

Cloud Software and Services		41.7%		41.0%		40.4%		39.1%		36.8%		36.5%		36.3%		37.1%

Enterprise		53.9%		54.4%		55.6%		56.3%		51.4%		50.5%		49.6%		48.0%

Other		3.0%		1.5%		2.1%		3.8%		-4.2%		4.7%		6.1%		18.2%

Total		47.6%		47.8%		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		21.1%		20.0%		17.8%		19.8%		19.8%		18.7%		12.6%		12.3%

Cloud Software and Services		16.8%		11.2%		5.8%		0.5%		5.6%		-3.0%		-4.8%		-2.8%

Enterprise		-33.3%		131.5%		-15.7%		-17.1%		-30.8%		-19.0%		-268.7%		-26.5%

Other		1.1%		-71.5%		9.5%		-35.0%		-93.5%		-14.6%		-23.2%		317.5%

Total		16.1%		26.9%		11.4%		10.8%		10.9%		9.3%		-22.6%		7.7%

	2025								2024
Year to date, as percentage of net sales	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		19.7%		19.2%		18.8%		19.8%		16.2%		14.7%		12.5%		12.3%

Cloud Software and Services		9.6%		6.2%		3.3%		0.5%		-0.7%		-3.6%		-3.9%		-2.8%

Enterprise		15.3%		28.8%		-16.4%		-17.1%		-88.8%		-107.6%		-152.6%		-26.5%

Other		-22.3%		-30.5%		-12.8%		-35.0%		53.6%		105.7%		161.1%		317.5%

Total		16.3%		16.4%		11.1%		10.8%		1.7%		-2.1%		-8.3%		7.7%



44	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures

EBITA and EBITA margin by segment by quarter


	2025								2024
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		9,348		7,096		6,397		7,367		9,375		7,536		4,771		4,179

Cloud Software and Services		3,368		1,726		845		76		1,107		-436		-721		-355

Enterprise		-1,120		6,987		-524		-625		-1,327		-823		-1,508		-820

Other		5		-293		45		-166		-532		-74		-116		1,889

Total		11,601		15,516		6,763		6,652		8,623		6,203		2,426		4,893


	2025								2024
Isolated quarters, as percentage of net sales	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		21.1%		20.0%		17.9%		20.7%		20.0%		18.8%		12.7%		12.4%

Cloud Software and Services		16.8%		11.2%		5.9%		0.6%		5.7%		-2.9%		-4.7%		-2.7%

Enterprise		-24.5%		138.1%		-9.4%		-10.5%		-21.8%		-13.0%		-23.3%		-13.7%

Other		1.1%		-71.3%		9.5%		-35.0%		-93.5%		-14.6%		-23.0%		317.5%

Total		16.7%		27.6%		12.0%		12.1%		11.8%		10.0%		4.1%		9.2%


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		30,208		20,860		13,764		7,367		25,861		16,486		8,950		4,179

Cloud Software and Services		6,015		2,647		921		76		-405		-1,512		-1,076		-355

Enterprise		4,718		5,838		-1,149		-625		-4,478		-3,151		-2,328		-820

Other		-409		-414		-121		-166		1,167		1,699		1,773		1,889

Total		40,532		28,931		13,415		6,652		22,145		13,522		7,319		4,893


			2025								2024
Year to date, as percentage of net sales	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		20.0%		19.5%		19.3%		20.7%		16.3%		14.8%		12.5%		12.4%

Cloud Software and Services		9.6%		6.2%		3.4%		0.6%		-0.6%		-3.5%		-3.8%		-2.7%

Enterprise		22.3%		35.3%		-10.0%		-10.5%		-18.0%		-16.8%		-18.7%		-13.7%

Other		-22.3%		-30.5%		-12.8%		-35.0%		53.7%		105.8%		161.2%		317.5%

Total		17.1%		17.3%		12.1%		12.1%		8.9%		7.7%		6.5%		9.2%



45	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures

Restructuring charges by function


	2025								2024
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Cost of sales		-538		-271		-310		-158		-1,034		-424		-466		-122

Research and development expenses		-300		41		-300		-20		-358		-966		-805		10

Selling and administrative expenses		-259		-73		-46		-103		-234		-163		-357		-93

Total		-1,097		-303		-656		-281		-1,626		-1,553		-1,628		-205


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Cost of sales		-1,277		-739		-468		-158		-2,046		-1,012		-588		-122

Research and development expenses		-579		-279		-320		-20		-2,119		-1,761		-795		10

Selling and administrative expenses		-481		-222		-149		-103		-847		-613		-450		-93

Total		-2,337		-1,240		-937		-281		-5,012		-3,386		-1,833		-205

Restructuring charges by segment


	2025								2024
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		-710		-79		-109		-108		-738		-585		-481		-95

of which cost of sales		-270		-45		-67		-55		-645		-163		-214		-68

of which operating expenses		-440		-34		-42		-53		-93		-422		-267		-27

Cloud Software and Services		-349		-193		-538		-74		-695		-863		-816		-60

of which cost of sales		-240		-222		-243		-102		-348		-243		-246		-49

of which operating expenses		-109		29		-295		28		-347		-620		-570		-11

Enterprise		-5		-27		-9		-97		-150		-38		-285		-38

of which cost of sales		-1		0		0		1		-2		-1		-3		-5

of which operating expenses		-4		-27		-9		-98		-148		-37		-282		-33

Other		-33		-4		0		-2		-43		-67		-46		-12

of which cost of sales		-27		-4		0		-2		-39		-17		-3		0

of which operating expenses		-6		0		0		0		-4		-50		-43		-12

Total		-1,097		-303		-656		-281		-1,626		-1,553		-1,628		-205


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		-1,006		-296		-217		-108		-1,899		-1,161		-576		-95

of which cost of sales		-437		-167		-122		-55		-1,090		-445		-282		-68

of which operating expenses		-569		-129		-95		-53		-809		-716		-294		-27

Cloud Software and Services		-1,154		-805		-612		-74		-2,434		-1,739		-876		-60

of which cost of sales		-807		-567		-345		-102		-886		-538		-295		-49

of which operating expenses		-347		-238		-267		28		-1,548		-1,201		-581		-11

Enterprise		-138		-133		-106		-97		-511		-361		-323		-38

of which cost of sales		0		1		1		1		-11		-9		-8		-5

of which operating expenses		-138		-134		-107		-98		-500		-352		-315		-33

Other		-39		-6		-2		-2		-168		-125		-58		-12

of which cost of sales		-33		-6		-2		-2		-59		-20		-3		0

of which operating expenses		-6		0		0		0		-109		-105		-55		-12

Total		-2,337		-1,240		-937		-281		-5,012		-3,386		-1,833		-205



46	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures



Adjusted gross income and Adjusted gross margin by segment
	2025								2024
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		21,918		17,750		17,705		18,167		22,971		19,495		17,353		14,919

Cloud Software and Services		8,876		6,685		6,207		5,171		7,591		5,780		5,653		4,883

Enterprise		2,387		2,609		3,045		3,337		3,308		3,308		3,313		2,870

Other		62		4		2		20		-129		26		-38		108

Total		33,243		27,048		26,959		26,695		33,741		28,609		26,281		22,780


	2025								2024
Isolated quarters, as percentage of net sales	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		49.6%		50.1%		49.5%		51.0%		49.1%		48.7%		46.1%		44.3%

Cloud Software and Services		44.3%		43.6%		43.2%		39.9%		39.0%		38.7%		37.2%		37.4%

Enterprise		52.1%		51.6%		54.9%		56.2%		54.3%		52.4%		51.1%		48.1%

Other		13.0%		1.0%		0.4%		4.2%		-22.7%		5.1%		-7.5%		18.2%

Total		48.0%		48.1%		48.0%		48.5%		46.3%		46.3%		43.9%		42.7%


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		75,540		53,622		35,872		18,167		74,738		51,767		32,272		14,919

Cloud Software and Services		26,939		18,063		11,378		5,171		23,907		16,316		10,536		4,883

Enterprise		11,378		8,991		6,382		3,337		12,799		9,491		6,183		2,870

Other		88		26		22		20		-33		96		70		108

Total		113,945		80,702		53,654		26,695		111,411		77,670		49,061		22,780


	2025								2024
Year to date, as percentage of net sales	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		50.0%		50.2%		50.2%		51.0%		47.2%		46.5%		45.2%		44.3%

Cloud Software and Services		43.0%		42.3%		41.6%		39.9%		38.2%		37.8%		37.3%		37.4%

Enterprise		53.9%		54.4%		55.6%		56.2%		51.5%		50.6%		49.6%		48.1%

Other		4.8%		1.9%		2.3%		4.2%		-1.5%		6.0%		6.4%		18.2%

Total		48.1%		48.2%		48.3%		48.5%		44.9%		44.4%		43.4%		42.7%



47	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures



Adjusted EBIT (loss) and Adjusted EBIT margin by segment
	2025								2024
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		10,028		7,154		6,485		7,148		10,005		8,077		5,231		4,251

Cloud Software and Services		3,713		1,914		1,378		145		1,794		420		88		-303

Enterprise		-1,521		6,676		-861		-917		-1,726		-1,163		-17,139		-1,544

Other		38		-290		45		-164		-489		-7		-71		1,901

Total		12,258		15,454		7,047		6,212		9,584		7,327		-11,891		4,305



	2025								2024
Isolated quarters, as percentage of net sales	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		22.7%		20.2%		18.1%		20.1%		21.4%		20.2%		13.9%		12.6%

Cloud Software and Services		18.5%		12.5%		9.6%		1.1%		9.2%		2.8%		0.6%		-2.3%

Enterprise		-33.2%		132.0%		-15.5%		-15.5%		-28.3%		-18.4%		-264.3%		-25.9%

Other		8.0%		-70.6%		9.5%		-34.6%		-85.9%		-1.4%		-14.1%		319.5%

Total		17.7%		27.5%		12.6%		11.3%		13.1%		11.9%		-19.9%		8.1%


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		30,815		20,787		13,633		7,148		27,564		17,559		9,482		4,251

Cloud Software and Services		7,150		3,437		1,523		145		1,999		205		-215		-303

Enterprise		3,377		4,898		-1,778		-917		-21,572		-19,846		-18,683		-1,544

Other		-371		-409		-119		-164		1,334		1,823		1,830		1,901

Total		40,971		28,713		13,259		6,212		9,325		-259		-7,586		4,305



	2025								2024
Year to date, as percentage of net sales	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		20.4%		19.5%		19.1%		20.1%		17.4%		15.8%		13.3%		12.6%

Cloud Software and Services		11.4%		8.1%		5.6%		1.1%		3.2%		0.5%		-0.8%		-2.3%

Enterprise		16.0%		29.6%		-15.5%		-15.5%		-86.8%		-105.7%		-150.0%		-25.9%

Other		-20.2%		-30.1%		-12.6%		-34.6%		61.3%		113.5%		166.4%		319.5%

Total		17.3%		17.2%		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	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		20.7%		20.4%		20.4%		19.3%		17.5%		16.0%		14.0%		13.4%

Cloud Software and Services		11.4%		8.5%		6.1%		4.0%		3.2%		3.6%		3.6%		3.0%

Enterprise		23.0%		21.2%		-12.6%		-15.0%		-16.0%		-14.1%		-13.2%		-11.7%

Other		-20.2%		-46.5%		-30.4%		-35.5%		61.4%		62.0%		43.6%		43.9%

Total		18.1%		16.8%		13.2%		11.6%		11.0%		10.2%		8.8%		8.5%



48	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures



Adjusted EBITA and Adjusted EBITA margin by segment
	2025								2024
Isolated quarters, SEK million	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		10,058		7,175		6,506		7,475		10,113		8,121		5,252		4,274

Cloud Software and Services		3,717		1,919		1,383		150		1,802		427		95		-295

Enterprise		-1,115		7,014		-515		-528		-1,177		-785		-1,223		-782

Other		38		-289		45		-164		-489		-7		-70		1,901

Total		12,698		15,819		7,419		6,933		10,249		7,756		4,054		5,098



	2025								2024

Isolated quarters, as percentage of net sales	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Networks		22.8%		20.3%		18.2%		21.0%		21.6%		20.3%		13.9%		12.7%

Cloud Software and Services		18.6%		12.5%		9.6%		1.2%		9.3%		2.9%		0.6%		-2.3%

Enterprise		-24.4%		138.7%		-9.3%		-8.9%		-19.3%		-12.4%		-18.9%		-13.1%

Other		8.0%		-70.3%		9.5%		-34.6%		-85.9%		-1.4%		-13.9%		319.5%

Total		18.3%		28.1%		13.2%		12.6%		14.1%		12.6%		6.8%		9.6%


	2025								2024
Year to date, SEK million	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		31,214		21,156		13,981		7,475		27,760		17,647		9,526		4,274

Cloud Software and Services		7,169		3,452		1,533		150		2,029		227		-200		-295

Enterprise		4,856		5,971		-1,043		-528		-3,967		-2,790		-2,005		-782

Other		-370		-408		-119		-164		1,335		1,824		1,831		1,901

Total		42,869		30,171		14,352		6,933		27,157		16,908		9,152		5,098



	2025								2024

Year to date, as percentage of net sales	Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar		Jan-Dec		Jan-Sep		Jan-Jun		Jan-Mar

Networks		20.7%		19.8%		19.6%		21.0%		17.5%		15.8%		13.3%		12.7%

Cloud Software and Services		11.4%		8.1%		5.6%		1.2%		3.2%		0.5%		-0.7%		-2.3%

Enterprise		23.0%		36.1%		-9.1%		-8.9%		-16.0%		-14.9%		-16.1%		-13.1%

Other		-20.2%		-30.0%		-12.6%		-34.6%		61.4%		113.6%		166.5%		319.5%

Total		18.1%		18.0%		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
	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1

Inventory turnover days (ITO)		79		80		80		81		84		92		97		100

Days sales outstanding (DSO)		12		11		14		17		23		26		29		30

Less: Days payables outstanding (DPO)		71		68		66		64		64		63		64		65

Operating working capital days		20		23		28		34		43		55		62		65



49	Ericsson \| Fourth quarter and full-year report 2025. January 23, 2026.	Alternative performance measures

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/ CHRIS HOUGHTON
Chris Houghton
Senior Vice President, Chief Operating Officer

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

Date: January 23, 2026

Source: View Original Filing on SEC EDGAR

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