[6-K] ERICSSON LM TELEPHONE CO Current Report (Foreign Issuer)
LM Ericsson reported Q3 2025 results showing lower sales but sharply higher profitability. Net sales were SEK 56.2b, down 9% year over year, while gross margin improved to 47.6%. EBIT rose to SEK 15.2b with a 26.9% margin, and diluted EPS was SEK 3.33, which includes a SEK 1.72 per‑share benefit from the iconectiv divestment.
Segment trends were mixed: Cloud Software and Services grew 9% organic with margin gains, Networks declined organically by 5% but improved margins, and Enterprise revenue fell on the iconectiv sale yet posted a large one‑time gain. Free cash flow before M&A was SEK 6.6b, and net cash increased to SEK 51.9b, aided by the divestment. Management expects Enterprise organic sales to stabilize in Q4 and the RAN market to remain broadly stable. The Board signaled scope for increased shareholder distributions, with its recommendation to be included in the Q4 report for decision at the AGM.
LM Ericsson ha riportato i risultati del terzo trimestre 2025 con vendite in calo ma una redditività fortemente superiore. Le vendite nette sono state SEK 56,2mila, in diminuzione del 9% rispetto all’anno precedente, mentre il margine lordo è salito al 47,6%. L'EBIT è aumentato a SEK 15,2mila con un margine del 26,9%, e l'EPS diluito è stato SEK 3,33, che comprende un beneficio di SEK 1,72 per azione derivante dalla cessione di iconectiv.
Le tendenze di settore sono state miste: Cloud Software and Services è cresciuto organic 9% con margini in aumento, Networks è diminuito organicamente del 5% ma ha migliorato i margini, e Enterprise ha visto un calo delle revenue a seguito della vendita di iconectiv, pur registrando un ingente guadagno una tantum. Il free cash flow prima delle operazioni di fusione e acquisizione è stato SEK 6,6 miliardi, e il net cash è aumentato a SEK 51,9 miliardi, agevolato dalla cessione. La direzione prevede che le vendite organiche dell’Enterprise si stabilizzino nel Q4 e che il mercato RAN resti ampiamente stabile. Il Consiglio ha segnalato spazio per aumentare le distribuzioni agli azionisti, con una raccomandazione da includere nel rapporto Q4 per una decisione all’Assemblea generale.
LM Ericsson reportó resultados del tercer trimestre de 2025, con ventas más bajas pero una rentabilidad notablemente mayor. Las ventas netas fueron SEK 56,2 mil millones, una caída del 9% interanual, mientras que el margen bruto mejoró al 47,6%. El EBIT subió a SEK 15,2 mil millones con un margen del 26,9%, y el EPS diluido fue de SEK 3,33, que incluye un beneficio de SEK 1,72 por acción derivado de la desinversión de iconectiv.
Las tendencias por segmento fueron mixtas: Cloud Software and Services creció orgánicamente un 9% con mejoras de margen, Networks cayó orgánicamente un 5% pero mejoró sus márgenes, y Enterprise cayó en ingresos debido a la venta de iconectiv, aunque registró una gran ganancia puntual. El flujo de caja libre antes de M&A fue de SEK 6,6 mil millones, y el net cash aumentó a SEK 51,9 mil millones, impulsado por la desinversión. La dirección espera que las ventas orgánicas de Enterprise se estabilicen en el Q4 y que el mercado RAN permanezca básicamente estable. El Consejo ha señalado espacio para aumentar las distribuciones a los accionistas, con su recomendación para incluir en el informe del Q4 para la decisión en la Junta General.
LM Ericsson은 2025년 3분기 실적에서 매출은 감소했지만 수익성은 크게 개선되었음을 보고했습니다. 순매출은 SEK 562억으로 전년 동기 대비 9% 감소했고, 총마진은 47.6%로 개선되었습니다. EBIT은 SEK 1520억으로 상승했고 마진은 26.9%였습니다. 희석된 EPS는 SEK 3.33였으며, 이는 아이콘택티브 매각으로 인한 주당 SEK 1.72의 혜택을 포함합니다.
부문별 추세는 엇갈렸습니다: Cloud Software and Services는 유기적 성장 9%로 마진이 개선되었고, Networks는 유기적 감소 5%였으나 마진은 개선되었습니다. Enterprise 매출은 iconectiv 매각으로 감소했으나 일회성 큰 이익을 기록했습니다. 인수합병 전 자유현금흐름은 SEK 6600억이었고, 순현금은 매각으로 인해 SEK 5190억까지 증가했습니다. 경영진은 Q4에서 Enterprise의 유기매출이 안정화되고 RAN 시장도 대체로 안정적일 것으로 전망합니다. 이사회는 주주 배당 증가 여지를 시사했으며, Q4 보고서에 포함되어 AGM에서 결정될 예정입니다.
LM Ericsson a publié ses résultats du troisième trimestre 2025 avec des ventes en recul mais une rentabilité nettement plus élevée. Les ventes nettes se situaient à SEK 56,2 milliards, en baisse de 9% sur un an, tandis que la marge brute s’est améliorée à 47,6%. L’EBIT a augmenté à SEK 15,2 milliards avec une marge de 26,9%, et le BPA dilué était de SEK 3,33, incluant un avantage de SEK 1,72 par action lié à la cession d’iconectiv.
Les tendances par segment étaient mixtes: le Cloud Software and Services a croît organiquement de 9% avec des gains de marge, les Networks ont reculé organiquement de 5% mais les marges se sont améliorées, et les Enterprise ont vu leurs revenus diminuer suite à la vente d’iconectiv, tout en affichant un gain ponctuel important. Le flux de trésorerie disponible avant les opérations de fusion et acquisition était de SEK 6,6 milliards, et la trésorerie nette a augmenté pour atteindre SEK 51,9 milliards, aidée par la cession. La direction s’attend à ce que les ventes organiques de l’Enterprise se stabilisent au T4 et que le marché RAN reste globalement stable. Le Conseil a laissé entrevoir une possibilité d’augmentation des distributions aux actionnaires, recommandation qui sera incluse dans le rapport du T4 pour décision lors de l’AG.
LM Ericsson hat die Ergebnisse des dritten Quartals 2025 gemeldet; die Umsätze sanken, die Profitabilität stieg jedoch deutlich. Der Nettoumsatz betrug SEK 56,2 Mrd., ein Rückgang von 9% gegenüber dem Vorjahr, während die Bruttomarge auf 47,6% zulegte. Das EBIT stieg auf SEK 15,2 Mrd. mit einer Marge von 26,9%, und der verwässerte EPS lag bei SEK 3,33, einschließlich eines Vorteils von SEK 1,72 pro Aktie durch den Verkauf von iconectiv.
Die Segmenttrends waren gemischt: Cloud Software and Services wuchs organisch um 9% mit Margensteigerungen, Networks verzeichneten organisch einen Rückgang von 5%, verbesserten jedoch die Margen, und Enterprise Umsatz fiel aufgrund des Iconectiv-Verkaufs, zeigte jedoch einen großen Einmaleffekt. Der Free Cash Flow vor M&A betrug SEK 6,6 Mrd., und der Netto-Geldbestand stieg auf SEK 51,9 Mrd., unterstützt durch die Veräußerung. Das Management erwartet, dass der organische Umsatz von Enterprise im Q4 stabil bleibt und der RAN-Markt insgesamt stabil bleibt. Der Vorstand signalisierte Spielraum für erhöhte Ausschüttungen an die Aktionäre, mit einer Empfehlung, die im Q4-Bericht aufgenommen wird, um auf der Hauptversammlung beschlossen zu werden.
LM Ericsson أبلغت عن نتائج الربع الثالث من 2025 مع انخفاض في المبيعات ولكن ربحية أعلى بشكل حاد. بلغت المبيعات الصافية SEK 56.2 مليار، بانخفاض 9% على أساس سنوي، بينما تحسن الهامش الإجمالي إلى 47.6%. ارتفع EBIT إلى SEK 15.2 مليار مع هامش قدره 26.9%, وكان ربحية السهم المخفّضة SEK 3.33 للسهم، وتشمل فائدة قدرها SEK 1.72 للسهم من بيع iconectiv.
كان اتجاهات القطاعات مختلطة: Cloud Software and Services نما بنسبة 9% عضويًا مع ارتفاع الهامش، Networks انخفض بنحو عضوي 5% لكن الهوامش تحسّنت، وEnterprise تراجعت الإيرادات بسبب بيع iconectiv لكنها سجلت ربحًا لمرة واحدة كبيرًا. كان التدفق النقدي الحر قبل عمليات الاندماج والاستحواذ SEK 6.6 مليار، وزاد صافي النقد إلى SEK 51.9 مليار، بمساعدة البيع. تتوقع الإدارة أن تستقر المبيعات العضوية لـ Enterprise في الربع الرابع وأن يظل سوق RAN مستقرًا عمومًا. أشارت المجلسة إلى إمكانية زيادة توزيع الأرباح على المساهمين، مع التوصية بإدراجها في تقرير الربع الرابع لاتخاذ القرار في الجمعية العامة.
LM Ericsson 报告了 2025 年第 3 季度业绩，销售额下降但盈利能力显著提高。净销售额为 SEK 562 亿，较上年同比下降 9%，而 毛利率 提升至 47.6%。息税前利润（EBIT）上升至 SEK 1520 亿，利润率为 26.9%，摊薄后每股收益 EPS 为 SEK 3.33，其中包含来自 iconectiv 出售的每股收益 SEK 1.72。
各业务板块趋势参差不齐：Cloud Software and Services 以 9% 的有机增长推动且毛利率提升，Networks 有机下降 5%，但毛利率有所改善，Enterprise 受 iconectiv 出售影响收入下降，但实现了一个较大的一次性收益。并购前自由现金流为 SEK 6.6 亿元，净现金增至 SEK 51.9 亿元，受出售的推动。管理层预计 Enterprise 的有机销售在 Q4 将趋于稳定，RAN 市场总体将保持稳定。董事会对提高股东分红的空间表示了信心，建议在 Q4 报告中纳入并在股东大会上决定。
- None.
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Insights
Profitability jumped on divestment gains; core trends mixed.
Ericsson delivered higher margins in Q3 2025: EBIT reached
Underlying demand was uneven. Cloud Software and Services grew
Cash generation and the stronger net cash of
LM Ericsson ha riportato i risultati del terzo trimestre 2025 con vendite in calo ma una redditività fortemente superiore. Le vendite nette sono state SEK 56,2mila, in diminuzione del 9% rispetto all’anno precedente, mentre il margine lordo è salito al 47,6%. L'EBIT è aumentato a SEK 15,2mila con un margine del 26,9%, e l'EPS diluito è stato SEK 3,33, che comprende un beneficio di SEK 1,72 per azione derivante dalla cessione di iconectiv.
Le tendenze di settore sono state miste: Cloud Software and Services è cresciuto organic 9% con margini in aumento, Networks è diminuito organicamente del 5% ma ha migliorato i margini, e Enterprise ha visto un calo delle revenue a seguito della vendita di iconectiv, pur registrando un ingente guadagno una tantum. Il free cash flow prima delle operazioni di fusione e acquisizione è stato SEK 6,6 miliardi, e il net cash è aumentato a SEK 51,9 miliardi, agevolato dalla cessione. La direzione prevede che le vendite organiche dell’Enterprise si stabilizzino nel Q4 e che il mercato RAN resti ampiamente stabile. Il Consiglio ha segnalato spazio per aumentare le distribuzioni agli azionisti, con una raccomandazione da includere nel rapporto Q4 per una decisione all’Assemblea generale.
LM Ericsson reportó resultados del tercer trimestre de 2025, con ventas más bajas pero una rentabilidad notablemente mayor. Las ventas netas fueron SEK 56,2 mil millones, una caída del 9% interanual, mientras que el margen bruto mejoró al 47,6%. El EBIT subió a SEK 15,2 mil millones con un margen del 26,9%, y el EPS diluido fue de SEK 3,33, que incluye un beneficio de SEK 1,72 por acción derivado de la desinversión de iconectiv.
Las tendencias por segmento fueron mixtas: Cloud Software and Services creció orgánicamente un 9% con mejoras de margen, Networks cayó orgánicamente un 5% pero mejoró sus márgenes, y Enterprise cayó en ingresos debido a la venta de iconectiv, aunque registró una gran ganancia puntual. El flujo de caja libre antes de M&A fue de SEK 6,6 mil millones, y el net cash aumentó a SEK 51,9 mil millones, impulsado por la desinversión. La dirección espera que las ventas orgánicas de Enterprise se estabilicen en el Q4 y que el mercado RAN permanezca básicamente estable. El Consejo ha señalado espacio para aumentar las distribuciones a los accionistas, con su recomendación para incluir en el informe del Q4 para la decisión en la Junta General.
LM Ericsson은 2025년 3분기 실적에서 매출은 감소했지만 수익성은 크게 개선되었음을 보고했습니다. 순매출은 SEK 562억으로 전년 동기 대비 9% 감소했고, 총마진은 47.6%로 개선되었습니다. EBIT은 SEK 1520억으로 상승했고 마진은 26.9%였습니다. 희석된 EPS는 SEK 3.33였으며, 이는 아이콘택티브 매각으로 인한 주당 SEK 1.72의 혜택을 포함합니다.
부문별 추세는 엇갈렸습니다: Cloud Software and Services는 유기적 성장 9%로 마진이 개선되었고, Networks는 유기적 감소 5%였으나 마진은 개선되었습니다. Enterprise 매출은 iconectiv 매각으로 감소했으나 일회성 큰 이익을 기록했습니다. 인수합병 전 자유현금흐름은 SEK 6600억이었고, 순현금은 매각으로 인해 SEK 5190억까지 증가했습니다. 경영진은 Q4에서 Enterprise의 유기매출이 안정화되고 RAN 시장도 대체로 안정적일 것으로 전망합니다. 이사회는 주주 배당 증가 여지를 시사했으며, Q4 보고서에 포함되어 AGM에서 결정될 예정입니다.
LM Ericsson a publié ses résultats du troisième trimestre 2025 avec des ventes en recul mais une rentabilité nettement plus élevée. Les ventes nettes se situaient à SEK 56,2 milliards, en baisse de 9% sur un an, tandis que la marge brute s’est améliorée à 47,6%. L’EBIT a augmenté à SEK 15,2 milliards avec une marge de 26,9%, et le BPA dilué était de SEK 3,33, incluant un avantage de SEK 1,72 par action lié à la cession d’iconectiv.
Les tendances par segment étaient mixtes: le Cloud Software and Services a croît organiquement de 9% avec des gains de marge, les Networks ont reculé organiquement de 5% mais les marges se sont améliorées, et les Enterprise ont vu leurs revenus diminuer suite à la vente d’iconectiv, tout en affichant un gain ponctuel important. Le flux de trésorerie disponible avant les opérations de fusion et acquisition était de SEK 6,6 milliards, et la trésorerie nette a augmenté pour atteindre SEK 51,9 milliards, aidée par la cession. La direction s’attend à ce que les ventes organiques de l’Enterprise se stabilisent au T4 et que le marché RAN reste globalement stable. Le Conseil a laissé entrevoir une possibilité d’augmentation des distributions aux actionnaires, recommandation qui sera incluse dans le rapport du T4 pour décision lors de l’AG.
LM Ericsson hat die Ergebnisse des dritten Quartals 2025 gemeldet; die Umsätze sanken, die Profitabilität stieg jedoch deutlich. Der Nettoumsatz betrug SEK 56,2 Mrd., ein Rückgang von 9% gegenüber dem Vorjahr, während die Bruttomarge auf 47,6% zulegte. Das EBIT stieg auf SEK 15,2 Mrd. mit einer Marge von 26,9%, und der verwässerte EPS lag bei SEK 3,33, einschließlich eines Vorteils von SEK 1,72 pro Aktie durch den Verkauf von iconectiv.
Die Segmenttrends waren gemischt: Cloud Software and Services wuchs organisch um 9% mit Margensteigerungen, Networks verzeichneten organisch einen Rückgang von 5%, verbesserten jedoch die Margen, und Enterprise Umsatz fiel aufgrund des Iconectiv-Verkaufs, zeigte jedoch einen großen Einmaleffekt. Der Free Cash Flow vor M&A betrug SEK 6,6 Mrd., und der Netto-Geldbestand stieg auf SEK 51,9 Mrd., unterstützt durch die Veräußerung. Das Management erwartet, dass der organische Umsatz von Enterprise im Q4 stabil bleibt und der RAN-Markt insgesamt stabil bleibt. Der Vorstand signalisierte Spielraum für erhöhte Ausschüttungen an die Aktionäre, mit einer Empfehlung, die im Q4-Bericht aufgenommen wird, um auf der Hauptversammlung beschlossen zu werden.
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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
October 14, 2025
Commission File Number
000-12033
LM ERICSSON TELEPHONE COMPANY
(Translation of registrant’s name into English)
Torshamnsgatan 21, Kista
SE-164 83, Stockholm, Sweden
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F [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, October 14, 2025 regarding “Third quarter report 2025”
Table of Contents
Third quarter report 2025
Strategic highlights – operational excellence and enhanced financial flexibility
| ● | Strong commercial momentum with significant customer agreements including in India, Japan and the UK. |
| ● | Operational excellence and cost efficiency actions driving gross margins to strong sustainable levels. |
| ● | 5G Open RAN-ready portfolio breadth and technology leadership position reaffirmed by Gartner and Omdia. |
Financial highlights – further profitability growth
| ● | Organic sales declined by -2%, with growth in three out of four market areas. Reported sales were SEK 56.2 (61.8) b., with an FX impact of SEK -4.2 b. |
| ● | Adjusted1 gross income decreased to SEK 27.0 (28.6) b. as currency headwinds offset strong operational execution. Reported gross income was SEK 26.8 (28.2) b. |
| ● | Adjusted1 gross margin was 48.1% (46.3%) driven by improvements in Networks and Cloud Software and Services. Reported gross margin was 47.6% (45.6%). |
| ● | Adjusted1 EBITA was SEK 15.8 (7.8) b. with a 28.1% (12.6%) margin, including a SEK 7.6 b. capital gain benefit from the divestment of iconectiv. Reported EBITA was SEK 15.5 (6.2) b. with a 27.6% (10.0%) margin. |
| ● | Net income was SEK 11.3 (3.9) b. including a benefit from the capital gain. EPS diluted was SEK 3.33 (1.14). |
| ● | Free cash flow before M&A was SEK 6.6 (12.9) b. Net cash increased to SEK 51.9 b. |
Börje Ekholm, President and CEO, said: ”In Q3, we established margins at a new long-term level following strong operational execution over the past few years. Cloud Software and Services sales grew 9%*, driven by strong growth in core networks.
Our solid progress on technology initiatives continues. Gartner and Omdia reconfirmed our 5G solutions are industry leading. Our Open RAN-ready portfolio includes an AI native, future proof software architecture which is hardware agnostic. The portfolio integrates with third-party radios and supports Ericsson silicon and third-party CPU/GPUs.
Looking ahead, we expect Enterprise organic sales to stabilize in Q4 and the RAN market to remain broadly stable. Solid recurring cash flow and the iconectiv sale contributed to a strong Q3 cash position, offering scope for increased shareholder distributions. The Board’s recommendation on the scale and mechanism for the distribution will be included in the Q4 report for decision at the AGM.”
| SEK b. |
Q3 2025 |
Q3 2024 |
YoY change |
Q2 2025 |
QoQ change |
Jan-Sep 2025 |
Jan-Sep 2024 |
YoY change |
||||||||||||||||||||||||
| Net sales |
56.2 | 61.8 | -9% | 56.1 | 0% | 167.4 | 175.0 | -4% | ||||||||||||||||||||||||
| Organic sales growth * ² |
- | - | -2% | - | - | - | - | 0% | ||||||||||||||||||||||||
| Gross income |
26.8 | 28.2 | -5% | 26.6 | 0% | 80.0 | 76.7 | 4% | ||||||||||||||||||||||||
| Gross margin ² |
47.6% | 45.6% | - | 47.5% | - | 47.8% | 43.8% | - | ||||||||||||||||||||||||
| EBIT (loss) |
15.2 | 5.8 | 162% | 6.4 | 137% | 27.5 | -3.6 | - | ||||||||||||||||||||||||
| EBIT margin ² |
26.9% | 9.3% | - | 11.4% | - | 16.4% | -2.1% | - | ||||||||||||||||||||||||
| EBITA ² |
15.5 | 6.2 | 150% | 6.8 | 129% | 28.9 | 13.5 | 114% | ||||||||||||||||||||||||
| EBITA margin ² |
27.6% | 10.0% | - | 12.0% | - | 17.3% | 7.7% | - | ||||||||||||||||||||||||
| Net income (loss) |
11.3 | 3.9 | 191% | 4.6 | 144% | 20.1 | -4.5 | - | ||||||||||||||||||||||||
| EPS diluted, SEK |
3.33 | 1.14 | 192% | 1.37 | 143% | 5.94 | -1.43 | - | ||||||||||||||||||||||||
| Free cashflow before M&A ² |
6.6 | 12.9 | -49% | 2.6 | 157% | 11.9 | 24.2 | -51% | ||||||||||||||||||||||||
| Net cash, end of period ² |
51.9 | 25.5 | 103% | 36.0 | 44% | 51.9 | 25.5 | 103% | ||||||||||||||||||||||||
| Adjusted financial measures ¹ ² |
||||||||||||||||||||||||||||||||
| Adjusted gross income |
27.0 | 28.6 | -5% | 27.0 | 0% | 80.7 | 77.7 | 4% | ||||||||||||||||||||||||
| Adjusted gross margin |
48.1% | 46.3% | - | 48.0% | - | 48.2% | 44.4% | - | ||||||||||||||||||||||||
| Adjusted EBIT (loss) |
15.5 | 7.3 | 111% | 7.0 | 119% | 28.7 | -0.3 | - | ||||||||||||||||||||||||
| Adjusted EBIT margin |
27.5% | 11.9% | - | 12.6% | - | 17.2% | -0.1% | - | ||||||||||||||||||||||||
| Adjusted EBITA |
15.8 | 7.8 | 104% | 7.4 | 113% | 30.2 | 16.9 | 78% | ||||||||||||||||||||||||
| Adjusted EBITA margin |
28.1% | 12.6% | - | 13.2% | - | 18.0% | 9.7% | - | ||||||||||||||||||||||||
| * | Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. |
| 1 | Adjusted metrics are adjusted to exclude restructuring charges. |
| 2 | Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement. |
| 1 Ericsson | Third quarter report 2025. October 14, 2025. | ||
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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.
See ‘Financial statements and other information’ for Alternative performance measures.
Group results
| Q3 | Q3 | YoY | Q2 | QoQ | Jan-Sep | Jan-Sep | YoY | |||||||||||||||||||||||||
| SEK b. |
2025 | 2024 | change | 2025 | change | 2025 | 2024 | change | ||||||||||||||||||||||||
| Net sales |
56.2 | 61.8 | -9% | 56.1 | 0% | 167.4 | 175.0 | -4% | ||||||||||||||||||||||||
| Organic sales growth ¹ |
- | - | -2% | - | - | - | - | 0% | ||||||||||||||||||||||||
| Gross income |
26.8 | 28.2 | -5% | 26.6 | 0% | 80.0 | 76.7 | 4% | ||||||||||||||||||||||||
| Gross margin |
47.6% | 45.6% | - | 47.5% | - | 47.8% | 43.8% | - | ||||||||||||||||||||||||
| Research and development (R&D) expenses |
-11.5 | -13.1 | - | -12.2 | - | -35.8 | -39.6 | - | ||||||||||||||||||||||||
| Selling and administrative expenses |
-7.9 | -9.4 | - | -8.2 | - | -24.7 | -41.1 | - | ||||||||||||||||||||||||
| Impairment losses on trade receivables |
0.0 | 0.1 | - | 0.0 | - | 0.1 | -0.3 | - | ||||||||||||||||||||||||
| Other operating income and expenses |
7.7 | 0.0 | - | 0.1 | - | 7.8 | 0.7 | - | ||||||||||||||||||||||||
| Share in earnings of associated companies |
0.0 | 0.0 | 33% | 0.0 | 9% | 0.1 | 0.1 | 23% | ||||||||||||||||||||||||
| EBIT (loss) |
15.2 | 5.8 | 162% | 6.4 | 137% | 27.5 | -3.6 | - | ||||||||||||||||||||||||
| EBIT margin ¹ |
26.9% | 9.3% | - | 11.4% | - | 16.4% | -2.1% | - | ||||||||||||||||||||||||
| EBITA ¹ |
15.5 | 6.2 | 150% | 6.8 | 129% | 28.9 | 13.5 | 114% | ||||||||||||||||||||||||
| EBITA margin ¹ |
27.6% | 10.0% | - | 12.0% | - | 17.3% | 7.7% | - | ||||||||||||||||||||||||
| Financial income and expenses, net |
-0.2 | -0.5 | - | 0.0 | - | -0.3 | -1.3 | - | ||||||||||||||||||||||||
| Income tax |
-3.6 | -1.4 | - | -1.8 | - | -7.1 | 0.5 | - | ||||||||||||||||||||||||
| Net income (loss) |
11.3 | 3.9 | 191% | 4.6 | 144% | 20.1 | -4.5 | - | ||||||||||||||||||||||||
| Restructuring charges |
-0.3 | -1.6 | - | -0.7 | - | -1.2 | -3.4 | - | ||||||||||||||||||||||||
| Adjusted financial measures ¹ |
||||||||||||||||||||||||||||||||
| Adjusted gross income |
27.0 | 28.6 | -5% | 27.0 | 0% | 80.7 | 77.7 | 4% | ||||||||||||||||||||||||
| Adjusted gross margin |
48.1% | 46.3% | - | 48.0% | - | 48.2% | 44.4% | - | ||||||||||||||||||||||||
| Adjusted EBIT (loss) |
15.5 | 7.3 | 111% | 7.0 | 119% | 28.7 | -0.3 | - | ||||||||||||||||||||||||
| Adjusted EBIT margin |
27.5% | 11.9% | - | 12.6% | - | 17.2% | -0.1% | - | ||||||||||||||||||||||||
| Adjusted EBITA |
15.8 | 7.8 | 104% | 7.4 | 113% | 30.2 | 16.9 | 78% | ||||||||||||||||||||||||
| Adjusted EBITA margin |
28.1% | 12.6% | - | 13.2% | - | 18.0% | 9.7% | - | ||||||||||||||||||||||||
| 1 | Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. |
Net sales
Reported sales decreased by -9% YoY to SEK 56.2 (61.8) b., including a SEK -4.2 b. currency impact. Networks sales declined by -11% to SEK 35.4 b. Cloud Software and Services sales increased by 3% to SEK 15.3 b. Enterprise sales declined by -20% to SEK 5.1 b., impacted by the divestment of iconectiv in the quarter. Sales in segment Other were SEK 0.4 b.
Organic sales declined by -2%* YoY. Networks sales declined by -5%* as sales growth in market area Europe, Middle East and Africa as well as in North East Asia, was offset by sales declines in the other market areas. Sales in India were weak, as customer network investments remained low. Cloud Software and Services sales grew by 9%* supported by growth in three of the four market areas. Sales in segment Enterprise declined by -7%*, with lower sales in Global Communications Platform, reflecting the impact of the 2024 decision to reduce activities in some countries, partly offset by slightly higher organic sales in Enterprise Wireless Solutions.
IPR licensing revenues decreased to SEK 3.1 (3.5) b. as Q3 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. IPR licensing revenue growth opportunities remain, including from increased penetration of the smartphone market and from new applications. Optimizing the terms and value of new agreements and renewals will remain a priority.
Gross income and margin
Gross margin increased to 47.6% (45.6%). 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 as the impact of the divestment of iconectiv in the quarter more than offset margin improvements in Global Communications Platform and Enterprise Wireless Solutions.
Gross income decreased to SEK 26.8 (28.2) b., as improvements in gross margin were offset by negative currency movements and lower sales.
Adjusted gross income decreased to SEK 27.0 (28.6) b., with a margin of 48.1% (46.3%), impacted by a currency effect of SEK -2.0 b.
Research and development (R&D) expenses
R&D expenses decreased to SEK -11.5 (-13.1) b., including a currency benefit of SEK 0.4 b. Increased investments in R&D for technology leadership were offset by savings from prior periods’ cost-reduction actions.
Selling and administrative (SG&A) expenses
SG&A expenses were SEK -7.9 (-9.4) b., including a currency benefit of SEK 0.5 b. SG&A expenses declined in all segments as a result of prior periods’ cost-reduction actions.
| 2 Ericsson | Third quarter report 2025. October 14, 2025. | Group results | |
Table of Contents
Other operating income and expenses
Other operating income and expenses increased to SEK 7.7 (0.0) b. reflecting a SEK 7.6 b. capital gain from the divestment of iconectiv.
Restructuring charges
Restructuring charges were SEK -0.3 (-1.6) b., with SEK -0.3 (-0.4) b. included in gross income and SEK 0.0 (-1.1) b. in operating expenses.
EBITA
EBITA increased to SEK 15.5 (6.2) b. including a SEK 7.6 b. capital gain from the divestment of iconectiv. Lower operating expenses, benefiting from prior periods’ cost-reduction actions, were partly offset by lower gross income. The EBITA margin was 27.6% (10.0%), including a 13.5 percentage point benefit from the iconectiv gain.
Adjusted EBITA increased to SEK 15.8 (7.8) b., including the capital gain from the divestment of iconectiv and a currency impact of SEK -1.2 b. The adjusted EBITA margin was 28.1% (12.6%), including a 13.5 percentage point benefit from the iconectiv gain.
EBIT
EBIT increased to SEK 15.2 (5.8) b. with a margin of 26.9% (9.3%). Amortization impacted EBIT by SEK -0.4 (-0.4) b.
Adjusted EBIT increased to SEK 15.5 (7.3) b. with a margin of 27.5% (11.9%).
Financial income and expenses, net
Financial income and expenses were SEK -0.2 (-0.5) b. Financial net improved, primarily as a result of a higher net cash position and lower interest rates on borrowings.
Income tax
Taxes were SEK -3.6 (-1.4) b. The estimated tax rate for the year is 26%.
Net income
Net income was SEK 11.3 (3.9) b. EBIT and financial net increased, partly offset by higher taxes.
Diluted EPS was SEK 3.33 (1.14), including a SEK 1.72 per share benefit from the gain related to the divestment of iconectiv.
Employees
The number of employees on September 30, 2025, was 89,898 compared with 91,937 on June 30, 2025. On September 30, 2024, the number of employees was 95,984.
Financial highlights, year-to-date (Jan-Sep) development
Reported sales decreased by -4% to SEK 167.4 (175.0) b. with a currency impact of SEK -7.1 b. Networks sales declined by -4% to SEK 106.8 (111.4) b., while sales in Cloud Software and Services declined by -1% to SEK 42.7 (43.2) b. and Enterprise sales declined by -12% to SEK 16.5 (18.8) b.
Organic sales were stable*. Cloud Software and Services sales increased by 2%*, while Networks sales were stable* and Enterprise sales declined by -7%*.
Sales increased in market area Americas, benefiting from growth in North America, while sales in Latin America declined. Sales declined in the other market areas, with the largest reduction in market area South East Asia, Oceania and India, primarily due to reduced investment levels in India. Sales were supported by IPR licensing revenues of SEK 11.2 (10.5) b.
Gross income increased to SEK 80.0 (76.7) b. with a gross margin of 47.8% (43.8%). The improved gross margin is a result of cost- reduction actions, operational efficiency and increased IPR licensing revenues.
Adjusted gross income increased to SEK 80.7 (77.7) b. including a currency impact of SEK -3.6 b. Adjusted gross margin increased to 48.2% (44.4%).
EBITA increased to SEK 28.9 (13.5) b. including a SEK 7.6 b. capital gain from the divestment of iconectiv. The increase in EBITA was also supported by higher gross income and lower operating expenses, partly offset by negative currency impacts. The EBITA margin was 17.3% (7.7%), including a 4.5 percentage point benefit from the iconectiv gain.
Adjusted EBITA increased to SEK 30.2 (16.9) b., including the capital gain from the divestment of iconectiv and a currency impact of SEK -2.3 b. The adjusted EBITA margin was 18.0% (9.7%), including a 4.5 percentage point benefit from the iconectiv gain.
EBIT (loss) increased to SEK 27.5 (-3.6) b., with a margin of 16.4% (-2.1%). Amortization of intangible assets was SEK -1.5 (-2.0) b. 2024 EBIT was impacted by a SEK -15.1 b. impairment charge.
Adjusted EBIT (loss) was SEK 28.7 (-0.3) b. with a margin of 17.2% (-0.1%).
Net income (loss) increased to SEK 20.1 (-4.5) b. 2024 included a SEK -11.4 b. net impact from impairment charges. Diluted EPS increased to SEK 5.94 (-1.43), including a SEK 1.72 per share benefit from the gain related to the divestment of iconectiv.
| 3 Ericsson | Third quarter report 2025. October 14, 2025. | Group results | |
Table of Contents
Market area sales
| SEK b. | Q3 2025 |
Q3 2024 |
YoY change |
YoY organic growth |
Q2 2025 |
QoQ change |
Jan-Sep 2025 |
Jan-Sep 2024 |
YoY change |
YoY organic growth |
||||||||||||||||||||||||||||||
| Americas |
19.8 | 23.4 | -15% | -8% | 19.8 | 0% | 60.3 | 59.7 | 1% | 6% | ||||||||||||||||||||||||||||||
| Europe, Middle East and Africa |
16.7 | 16.9 | -1% | 3% | 16.2 | 3% | 47.4 | 49.4 | -4% | -2% | ||||||||||||||||||||||||||||||
| South East Asia, Oceania and India |
7.1 | 7.7 | -8% | 1% | 5.5 | 29% | 19.8 | 24.0 | -17% | -13% | ||||||||||||||||||||||||||||||
| North East Asia |
3.8 | 3.7 | 4% | 10% | 3.8 | 2% | 10.8 | 11.7 | -7% | -5% | ||||||||||||||||||||||||||||||
| Other |
8.8 | 10.1 | -13% | -2% | 10.9 | -19% | 29.1 | 30.2 | -4% | 3% | ||||||||||||||||||||||||||||||
| Of which IPR |
3.1 | 3.5 | -10% | - | 4.9 | -36% | 11.2 | 10.5 | 7% | - | ||||||||||||||||||||||||||||||
| Total |
56.2 | 61.8 | -9% | -2% | 56.1 | 0% | 167.4 | 175.0 | -4% | 0% | ||||||||||||||||||||||||||||||
Market Area Americas
Sales declined by -8%* YoY. North America Networks sales declined, following a particularly strong Q3 2024, which benefited from the ramp-up of deliveries from new contract wins and selective network investments by some large customers. In Latin America sales declined significantly as a result of continued intense competition and lower customer network investments. Cloud Software and Services sales increased due to growth in core networks in North America driven by a modernization project. Reported sales declined by -15% YoY.
Market Area Europe, Middle East and Africa
Sales grew by 3%* YoY. Networks sales in Africa grew strongly, driven by 4G modernization, and new 5G launches in Egypt and Morocco. In the Middle East, sales fell due to the timing of project deliveries. Sales declined in Europe, following the completion of modernization projects and continued cautious customer investment levels. Cloud Software and Services sales increased due to timing of project delivery milestones. Reported sales decreased by -1% YoY.
In the quarter, an 8-year partnership was announced with VodafoneThree to supply a significant majority of its next-generation UK mobile network and the entire core network.
Market Area South East Asia, Oceania and India
Sales increased by 1%* YoY. Networks sales declined, primarily due to reduced network investment levels in India, as well as increased competition in South East Asia. Cloud Software and Services sales increased, reflecting timing of project deliverables. Reported sales declined by -8% YoY.
In the quarter, a contract was announced with Bharti Airtel to support the rollout of Fixed Wireless Access with Ericsson’s core network portfolio.
Market Area North East Asia
Sales increased 10%* YoY. Networks sales increased, benefiting from higher deliveries in Japan. Cloud Software and Services sales were stable. Reported sales increased by 4% YoY.
In the quarter, several new agreements were awarded with key customers in Japan, including to enhance Softbank’s 4G and 5G networks, and to expand 5G standalone coverage.
Market Area Other
Market area Other includes IPR licensing revenues and almost all sales in segment Enterprise. Sales decreased by -2%*, with sales decline in segment Enterprise as well as lower IPR licensing revenues. Reported sales decreased by -13% YoY.
| 4 Ericsson | Third quarter report 2025. October 14, 2025. | Market area sales | |
Table of Contents
Segment results
| Mobile Networks – Segment Networks |
| |||||||||||||||
| SEK b. |
Q3 2025 |
Q3 2024 |
YoY change |
Q2 2025 |
||||||||||||
| Net sales |
35.4 | 40.0 | -11% | 35.7 | ||||||||||||
| Of which IPR licensing revenues |
2.6 | 2.9 | -10% | 4.0 | ||||||||||||
| Organic sales growth |
- | - | -5% | - | ||||||||||||
| Gross income |
17.7 | 19.3 | -8% | 17.6 | ||||||||||||
| Gross margin |
50.0% | 48.3% | - | 49.3% | ||||||||||||
| EBIT |
7.1 | 7.5 | -6% | 6.4 | ||||||||||||
| EBIT margin |
20.0% | 18.7% | - | 17.8% | ||||||||||||
| EBITA |
7.1 | 7.5 | -6% | 6.4 | ||||||||||||
| EBITA margin |
20.0% | 18.8% | - | 17.9% | ||||||||||||
| Restructuring charges |
-0.1 | -0.6 | - | -0.1 | ||||||||||||
| Adjusted financial measures |
||||||||||||||||
| Adjusted gross income |
17.8 | 19.5 | -9% | 17.7 | ||||||||||||
| Adjusted gross margin |
50.1% | 48.7% | - | 49.5% | ||||||||||||
| Adjusted EBIT |
7.2 | 8.1 | -11% | 6.5 | ||||||||||||
| Adjusted EBIT margin |
20.2% | 20.2% | - | 18.1% | ||||||||||||
| Adjusted EBITA |
7.2 | 8.1 | -12% | 6.5 | ||||||||||||
| Adjusted EBITA margin |
20.3% | 20.3% | - | 18.2% | ||||||||||||
Breakdown of sales into products, services and IPR licensing is available in note 3.
Net sales
Sales decreased by -5%*. Sales grew in market area Europe, Middle East and Africa as well as in North East Asia, while sales declined in the other market areas. Services sales grew, increasing sales mix share. Reported sales decreased by -11% YoY to SEK 35.4 (40.0) b., including a currency impact of SEK -2.8 b.
Sales growth in market area Europe, Middle East and Africa was driven by strong sales growth in Africa, while sales in market area North East Asia increased primarily due to growth in Japan. Sales in market area Americas declined, reflecting the strong pace of North America deliveries in the prior year period as well as lower sales in Latin America. Sales declined in market area South East Asia, Oceania and India, primarily in India.
Gross income and margin
Adjusted gross margin increased to 50.1% (48.7%). Prior periods’ cost-reduction actions and operational efficiency more than offset a negative impact from product mix. Adjusted gross income decreased to SEK 17.8 (19.5) b., despite a higher gross margin, reflecting lower net sales and a negative currency impact of SEK -1.4 b.
EBITA
Adjusted EBITA decreased to SEK 7.2 (8.1) b. YoY including a SEK -1.1 b. currency impact. Lower gross income was partly offset by lower operating expenses. Operating expenses decreased, benefiting from continued efficiency improvements and positive currency impacts. R&D investments remained stable, supporting the strategy to build high-performing programmable networks and maintain technology leadership. The adjusted EBITA margin was 20.3% (20.3%).
Net sales rolling four quarters were SEK 153.6 b. and the adjusted EBITA margin rolling four quarters was 20.4%.
| Mobile Networks - Segment Cloud Software and Services |
| |||||||||||||||
| SEK b. |
Q3 2025 |
Q3 2024 |
YoY change |
Q2 2025 |
||||||||||||
| Net sales |
15.3 | 15.0 | 3% | 14.4 | ||||||||||||
| Of which IPR licensing revenues |
0.6 | 0.6 | -10% | 0.9 | ||||||||||||
| Organic sales growth |
- | - | 9% | - | ||||||||||||
| Gross income |
6.5 | 5.5 | 17% | 6.0 | ||||||||||||
| Gross margin |
42.1% | 37.0% | - | 41.5% | ||||||||||||
| EBIT (loss) |
1.7 | -0.4 | - | 0.8 | ||||||||||||
| EBIT margin |
11.2% | -3.0% | - | 5.8% | ||||||||||||
| EBITA (loss) |
1.7 | -0.4 | - | 0.8 | ||||||||||||
| EBITA margin |
11.2% | -2.9% | - | 5.9% | ||||||||||||
| Restructuring charges |
-0.2 | -0.9 | - | -0.5 | ||||||||||||
| Adjusted financial measures |
||||||||||||||||
| Adjusted gross income |
6.7 | 5.8 | 16% | 6.2 | ||||||||||||
| Adjusted gross margin |
43.6% | 38.7% | - | 43.2% | ||||||||||||
| Adjusted EBIT |
1.9 | 0.4 | - | 1.4 | ||||||||||||
| Adjusted EBIT margin |
12.5% | 2.8% | - | 9.6% | ||||||||||||
| Adjusted EBITA |
1.9 | 0.4 | - | 1.4 | ||||||||||||
| Adjusted EBITA margin |
12.5% | 2.9% | - | 9.6% | ||||||||||||
Breakdown of sales into products, services and IPR licensing is available in note 3.
Net sales
Sales increased by 9%*, primarily driven by increased core networks sales across all market areas. The product mix remained stable YoY. Reported sales increased by 3% to SEK 15.3 (15.0) b., despite a currency impact of SEK -0.9 b. Services sales accounted for 65% (65%) of sales.
Sales growth in market area Americas was driven by strong sales growth in North America. Sales grew in market area Europe, Middle East and Africa as well as in market area South East Asia, Oceania, and India, while sales remained stable in market area North East Asia.
Gross income and margin
Adjusted gross margin increased to 43.6% (38.7%), benefiting from effective strategy execution in recent years. Adjusted gross income increased to SEK 6.7 (5.8) b. despite a SEK -0.3 b. currency impact.
EBITA
Adjusted EBITA was SEK 1.9 (0.4) b. supported by higher gross income and lower operating expenses, reflecting strong strategy execution. The decrease in operating expenses was driven by prior periods’ cost-reduction actions and positive currency impacts. Adjusted EBITA included a SEK -0.1 b. currency impact. The adjusted EBITA margin was 12.5% (2.9%).
Net sales rolling four quarters were SEK 62.1 b. and the adjusted EBITA margin rolling four quarters was 8.5%.
| 5 Ericsson | Third quarter report 2025. October 14, 2025. | Segment results | |
Table of Contents
| Enterprise — Segment Enterprise |
| |||||||||||||||
| SEK b. |
Q3 2025 |
Q3 2024 |
YoY change |
Q2 2025 |
||||||||||||
| Net sales |
5.1 | 6.3 | -20% | 5.5 | ||||||||||||
| Of which Global Comms Platform (Vonage) |
3.2 | 3.8 | -17% | 3.2 | ||||||||||||
| Of which Enterprise Wireless Solutions |
1.2 | 1.3 | -7% | 1.2 | ||||||||||||
| Organic sales growth |
- | - | -7% | - | ||||||||||||
| Gross income |
2.6 | 3.3 | -21% | 3.0 | ||||||||||||
| Gross margin |
51.6% | 52.3% | - | 54.9% | ||||||||||||
| EBIT (loss) |
6.6 | -1.2 | - | -0.9 | ||||||||||||
| EBIT margin |
131.5% | -19.0% | - | -15.7% | ||||||||||||
| EBITA (loss) |
7.0 | -0.8 | - | -0.5 | ||||||||||||
| EBITA margin |
138.1% | -13.0% | - | -9.4% | ||||||||||||
| Restructuring charges |
0.0 | 0.0 | - | 0.0 | ||||||||||||
| Adjusted financial measures |
||||||||||||||||
| Adjusted gross income |
2.6 | 3.3 | -21% | 3.0 | ||||||||||||
| Adjusted gross margin |
51.6% | 52.4% | - | 54.9% | ||||||||||||
| Global Comms Platform (Vonage) |
46.2% | 44.0% | - | 47.8% | ||||||||||||
| Enterprise Wireless Solutions |
63.5% | 60.7% | - | 62.8% | ||||||||||||
| Adjusted EBIT (loss) |
6.7 | -1.2 | - | -0.9 | ||||||||||||
| Adjusted EBIT margin |
132.0% | -18.4% | - | -15.5% | ||||||||||||
| Adjusted EBITA (loss) |
7.0 | -0.8 | - | -0.5 | ||||||||||||
| Of which Global Comms Platform (Vonage) ¹ |
-0.6 | -0.4 | - | -0.4 | ||||||||||||
| Of which Enterprise Wireless Solutions ¹ |
-0.3 | -0.5 | - | -0.4 | ||||||||||||
| Adjusted EBITA margin |
138.7% | -12.4% | - | -9.3% | ||||||||||||
1Common costs are included at segment level only (not distributed within the segment).
Net sales
Sales declined by -7%* YoY, driven by lower sales in Global Communications Platform. Reported sales decreased by -20% YoY to SEK 5.1 (6.3) b. reflecting lower sales in Global Communications Platform, the divestment of iconectiv in the quarter, and a currency impact of SEK -0.5 b.
Sales in Global Communications Platform declined by -9%* YoY, reflecting the 2024 decision to reduce activities in some countries. This impact largely concluded in the quarter. Execution of the turnaround plan continues, with a second quarter of sequential sales growth in Q3, excluding currency impacts. Sales in Enterprise Wireless Solutions grew by 2%* YoY.
Gross income and margin
Adjusted gross margin decreased to 51.6% (52.4%), primarily reflecting the divestment of iconectiv in the quarter. Gross margin improved in Global Communications Platform and in Enterprise Wireless Solutions, benefiting from improved product mix. Adjusted gross income was SEK 2.6 (3.3) b., primarily reflecting the divestment of iconectiv in the quarter, as well as a negative currency impact of SEK -0.3 b.
EBITA (loss)
Adjusted EBITA (loss) was SEK 7.0 (-0.8) b., mainly reflecting the SEK 7.6 b. capital gain from the divestment of iconectiv. Adjusted EBITA included a SEK 0.0 b. currency impact. Adjusted EBITA margin was 138.7% (-12.4%), including a 150 percentage point benefit from the divestment of inconectiv.
Net sales rolling four quarters were SEK 22.6 b. and the adjusted EBITA margin rolling four quarters was 21.2%, including a 33.5 percentage point benefit from the iconectiv gain.
Divested operations
In Q3 2025, Aduna and iconectiv were divested. The contribution to Enterprise Q3 2025 results from divested operations was SEK 0.6 b. in net sales, SEK 0.4 b. in adjusted gross income, and SEK 8.1 b. in adjusted EBITA.
|
Segment Other |
| |||||||||||||||
| SEK b. |
Q3 2025 |
Q3 2024 |
YoY change |
Q2 2025 |
||||||||||||
| Net sales |
0.4 | 0.5 | -19% | 0.5 | ||||||||||||
| Organic sales growth |
- | - | -15% | - | ||||||||||||
| Gross income |
0.0 | 0.0 | -100% | 0.0 | ||||||||||||
| Gross margin |
0.0% | 1.8% | - | 0.4% | ||||||||||||
| EBIT (loss) |
-0.3 | -0.1 | - | 0.0 | ||||||||||||
| EBIT margin |
-71.5% | -14.6% | - | 9.5% | ||||||||||||
| EBITA (loss) |
-0.3 | -0.1 | - | 0.0 | ||||||||||||
| EBITA margin |
-71.3% | -14.6% | - | 9.5% | ||||||||||||
| Restructuring charges |
0.0 | -0.1 | - | 0.0 | ||||||||||||
| Adjusted financial measures |
||||||||||||||||
| Adjusted gross income |
0.0 | 0.0 | -85% | 0.0 | ||||||||||||
| Adjusted gross margin |
1.0% | 5.1% | - | 0.4% | ||||||||||||
| Adjusted EBIT (loss) |
-0.3 | 0.0 | - | 0.0 | ||||||||||||
| Adjusted EBIT margin |
-70.6% | -1.4% | - | 9.5% | ||||||||||||
| Adjusted EBITA (loss) |
-0.3 | 0.0 | - | 0.0 | ||||||||||||
| Adjusted EBITA margin |
-70.3% | -1.4% | - | 9.5% | ||||||||||||
Net sales
Reported sales were SEK 0.4 (0.5) b.
Gross income and margin
Adjusted gross income was SEK 0.0 (0.0) b. Adjusted gross margin was 1.0% (5.1%).
EBITA (loss)
Adjusted EBITA (loss) was SEK -0.3 (0.0) b., reflecting a revaluation of the Ericsson Ventures portfolio.
Net sales rolling four quarters were SEK 1.9 b.
| 6 Ericsson | Third quarter report 2025. October 14, 2025. | Segment results | |
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Cash flow and financial position
| Free cash flow bridge, SEK b. |
Q3 2025 |
Q3 2024 |
Q2 2025 |
Jan-Sep 2025 |
Jan-Sep 2024 |
|||||||||||||||
| Adjusted EBITA |
15.8 | 7.8 | 7.4 | 30.2 | 16.9 | |||||||||||||||
| Depreciation and amortization of non-acquired assets |
1.8 | 1.9 | 1.8 | 5.6 | 5.8 | |||||||||||||||
| Restructuring charges |
-0.3 | -1.6 | -0.7 | -1.2 | -3.4 | |||||||||||||||
| Changes in operating net assets |
-0.5 | 7.8 | -2.7 | -6.0 | 15.0 | |||||||||||||||
| Interest paid/received, taxes paid, and other |
-8.9 | -1.5 | -1.8 | -12.1 | -5.5 | |||||||||||||||
| Cash flow from operating activities |
7.9 | 14.4 | 4.2 | 16.4 | 28.7 | |||||||||||||||
| Net capex and other investing activities |
-0.8 | -0.8 | -1.0 | -2.9 | -2.7 | |||||||||||||||
| Repayment of lease liabilities |
-0.5 | -0.6 | -0.6 | -1.7 | -1.9 | |||||||||||||||
| Free cash flow before M &A |
6.6 | 12.9 | 2.6 | 11.9 | 24.2 | |||||||||||||||
| Cash flow from operating activities |
7.9 | 14.4 | 4.2 | 16.4 | 28.7 | |||||||||||||||
| Cash flow from investing activities |
3.2 | -0.3 | -10.9 | -6.4 | -7.6 | |||||||||||||||
| Cash flow from financing activities |
-1.2 | -4.2 | -3.5 | -5.4 | -18.4 | |||||||||||||||
| SEK b. |
Sep 30 2025 |
Sep 30 2024 |
Jun 30 2025 |
|||||||||
| Gross cash |
88.4 | 62.2 | 73.3 | |||||||||
| - Borrowings, current |
6.7 | 3.1 | 7.3 | |||||||||
| - Borrowings, non-current |
29.9 | 33.5 | 29.9 | |||||||||
| Net cash |
51.9 | 25.5 | 36.0 | |||||||||
| Equity |
102.5 | 85.4 | 85.7 | |||||||||
| Equity ratio (% ) |
36.3% | 31.3% | 31.7% | |||||||||
| Capital turnover (times) |
1.5 | 1.5 | 1.6 | |||||||||
| Return on capital employed (%) |
22.5% | 1.3% | 16.8% | |||||||||
Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements.
Cash flow
Cash flow from operating activities was SEK 7.9 (14.4) b. Cash flow was driven by earnings, excluding the impact of the gain from the divestment of iconectiv. Net operating assets remained broadly stable.
Cash flow from operating activities decreased compared to the prior year period. EBITA increased YoY, excluding the impact of the gain from the divestment of iconectiv. However, Q3 2024 cash flow benefited from a significant reduction in operating working capital, reflecting the completion of large-scale roll-out projects and inventory reductions.
Cash flow from investing activities was SEK 3.2 (-0.3) b. as the proceeds from the divestment of iconectiv were largely offset by investments in interest-bearing securities.
Cash flow from financing activities was SEK -1.2 (-4.2) b. There were no material financing activities in Q3 2025.
Financial position
Gross cash increased sequentially by SEK 15.1 b. to SEK 88.4 b. driven by the proceeds from the divestment of iconectiv and positive free cash flow before M&A.
There were no material funding activities in the quarter. As of September 30, 2025, total unutilized committed credit facilities amounted to SEK 23.5 b.
The average maturity of parent company borrowings was 3.0 years as of September 30, 2025, compared with 3.8 years as of September 30, 2024.
Net cash increased sequentially by SEK 15.8 b. to SEK 51.9 b.
Liabilities for post-employment benefits decreased to SEK 19.3 b. from SEK 24.9 b. in Q2 2025 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 10.4 b., which is SEK 8.9 b. lower than current DBO.
| 7 Ericsson | Third quarter report 2025. October 14, 2025. | Cash flow and financial position | |
Table of Contents
Key data points
Market
Dell’Oro estimates that the global RAN equipment market will remain stable in 2025.
Source: Dell’Oro Mobile RAN Quarterly Report 2Q25, Aug 2025.
Ericsson
Net sales
Reported average seasonality last 3 years (2022–2024), %.
| Q4èQ1 | Q1èQ2 | Q2èQ3 | Q3èQ4 | |||||
|
Networks |
-24% | +8% | +3% | +16% | ||||
|
Cloud Software and Services |
-33% | +15% | +1% | +33% | ||||
Net sales may show large variations between quarters, including currency changes.
IPR licensing revenues
At the end of Q3 2025, recurring annual IPR licensing revenues were approximately SEK 13 b.
Currency exposure
Rule of thumb: A 10% appreciation/depreciation in the USD vs. SEK would have a positive/negative impact of approximately 5% on net sales.
Amortization of intangible assets
Amortization of intangible assets is expected to be around SEK -0.5 b. per quarter, of which approximately SEK -0.4 b. related to segment Enterprise.
Restructuring charges
Restructuring charges for 2025 are expected to remain at elevated levels.
Segments
Increased uncertainty remains on the outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment.
Networks
Sales growth in Q4 2025 is expected to be broadly similar to 3-year average seasonality.
Adjusted gross margin in Q4 2025 is expected to be in the range of 49% to 51%.
Cloud Software and Services
Sales growth in Q4 2025 is expected to be broadly similar to 3-year average seasonality.
Enterprise
In Q3 2025, the contribution to Enterprise results from divested operations was SEK 0.6 b. in net sales, SEK 0.4 b. in adjusted gross income, and SEK 8.1 b. in adjusted EBITA.
The financial impact of the 2024 decision to reduce Global Communications Platform activities in some countries largely concluded in Q3 2025. Enterprise organic sales are expected to stabilize YoY in Q4 2025.
Capital allocation
The Board remains focused on both maintaining a solid net cash position to support R&D investment through the cycle and returning excess capital to shareholders.
The Board communicated at the March 25, 2025, Annual General Meeting that they would be undertaking a review of the balance sheet structure during the year and will return with more information after this.
The Company currently has strong generation of recurring free cashflow and a strong net cash position, supported by the iconectiv divestment. This presents scope for increased shareholder distributions through higher dividends and/or a share buyback program.
The Board intends to revert with a final proposal for shareholder approval at the 2026 AGM.
| 8 Ericsson | Third quarter report 2025. October 14, 2025. | Key data points | |
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Parent Company
Income after financial items January – September 2025, was SEK 28.9 (-4.0) b.
At the end of the quarter, gross cash (cash, cash equivalents plus interest-bearing securities, current and non-current) amounted to SEK 76.3 (46.2) b.
There was a decrease in intercompany lending of SEK 4.7 b. and an increase in intercompany borrowing of SEK 1.7 b. in the quarter.
At the end of the quarter, non-restricted equity amounted to SEK 41.1 (13.9) b., and total equity amounted to SEK 89.4 (62.1) b.
The Parent Company has recognized dividends from subsidiaries of SEK 9.6 (3.1) b. in the quarter.
The holding of treasury stock on September 30, 2025, was 38,065,074 Class B shares.
| 9 Ericsson | Third quarter report 2025. October 14, 2025. | Parent Company | |
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Other information
Legal proceedings involving governmental authorities
In February 2022, Ericsson publicly disclosed that an internal investigation in 2019 included a review of the conduct of Ericsson employees, vendors and suppliers in Iraq during the period between 2011 to 2019. The investigators could not determine the ultimate recipients of any payments, nor identify that any Ericsson employee was directly involved in financing terrorist organizations. The Company’s 2019 internal Iraq investigation did not conclude that Ericsson made or was responsible for any payments to any terrorist organization.
The Company continues to fully cooperate with the DOJ in its investigation into matters discussed in the 2019 internal Iraq investigation report and related topics concerning jurisdictions including Iraq, and the Company is providing additional documents and other information which continue to be requested by the DOJ. As additional information continues to be identified and evaluated in continued cooperation with the DOJ during its ongoing investigation, it is expected that there will not be any conclusive determinations on the outcome until the investigation is completed. The scope and duration of the investigation remains uncertain.
As part of its defense to a now settled patent infringement lawsuit filed by Ericsson in 2013 in the Delhi High Court against Indian handset company Micromax, Micromax filed a complaint against Ericsson with the Competition Commission of India. The Competition Commission of India decided to refer the case to the Director General’s Office for an in-depth investigation. The Competition Commission of India opened similar investigations against Ericsson in January 2014 based on claims made by Intex Technologies (India) Limited and, in 2015, based on a now settled claim from iBall. Ericsson has challenged Competition Commission of India’s jurisdiction in these cases before the Delhi High Court. On July 13, 2023, the Division Bench of the Delhi High Court found that in this instance the Competition Commission of India has no power to conduct the pending investigations against Ericsson. The Competition Commission of India appealed this order to the Supreme Court of India. On September 2, 2025, the Supreme Court dismissed the case concluding that the Competition Commission of India does not have jurisdiction to investigate Ericsson’s patent licensing conduct.
In April 2019, Ericsson was informed by China’s State Administration for Market Regulation Anti-monopoly Bureau (SAMR) that SAMR has initiated an investigation into Ericsson’s patent licensing practices in China. Ericsson is cooperating with the investigation, which is still in a fact-finding phase. The next steps include continued fact-finding and meetings with SAMR in order to facilitate the authority’s assessment and conclusions. In case of adverse findings, SAMR has the power to impose behavioral and financial remedies.
Legal proceedings not involving governmental authorities
In August 2022, a civil lawsuit was filed in the United States District Court for the District of Columbia against Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, the “Ericsson defendants”). The lawsuit was brought by US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 2021, as well as by their family members. The lawsuit asserts claims against the Ericsson defendants under the U.S. Anti-Terrorism Act alleging that the Ericsson defendants made payments that ultimately aided the terrorist organizations that committed, planned or authorized the attacks. In November 2022, the Ericsson defendants filed a motion to dismiss the complaint. On December 20, 2022, plaintiffs filed an amended complaint, which added additional plaintiffs, including a plaintiff injured in Turkey, and also named Ericsson AB (collectively with the Ericsson defendants, the “Ericsson corporate defendants”), President and CEO Börje Ekholm and a former employee (who has not been served with process) as additional defendants and also asserted additional allegations and claims. In March 2023, the Ericsson corporate defendants and Mr. Ekholm filed motions to dismiss the amended complaint. Plaintiffs filed their oppositions to defendants’ motions to dismiss the amended complaint in June 2023, and defendants filed reply briefs in support of their motions to dismiss in July 2023. All briefing has been submitted, and resolution of the matter is pending with the District Court. All defendants will continue to vigorously defend this matter.
In February 2024, a second civil lawsuit also alleging violations of the U.S. Anti-Terrorism Act was filed in the United States District Court for the District of Columbia. The lawsuit was filed by the same law firm and involves substantially similar factual allegations and claims as those made in the Anti-Terrorism Act lawsuit originally filed in August 2022, and similarly names the same Ericsson corporate defendants, President and CEO Börje Ekholm and a former employee as defendants. The new lawsuit was brought by additional US military service members, employees of US government contractors and other civilians who were killed or injured in terrorist attacks in Iraq, Afghanistan, Syria, Turkey, Niger, and France from 2005 to 2021, as well as by their family members. The District Court for the District of Columbia has stayed the proceedings in this matter pending its decision on the motions to dismiss in the earlier-filed suit. The defendants will vigorously defend this matter.
Beginning on August 4, 2023, a number of civil lawsuits have been filed against Telefonaktiebolaget LM Ericsson in Solna District Court, Sweden. 93 claimants have filed suit, which are coordinated and financed by a UK-based litigation funder. The claimants consist of a group of non-Swedish funds and financial institutions that allegedly are or have been shareholders of the Company. Their damages claims are primarily based on alleged inadequate disclosure of the contents of the Company’s 2019 internal Iraq investigation report. Ericsson filed its statement of defense on March 15, 2024. On February 14, 2025, the District Court ordered Ericsson to produce the 2019 internal Iraq investigation report to the claimants’ external counsel. Ericsson 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.
| 10 Ericsson | Third quarter report 2025. October 14, 2025. | Other information | |
Table of Contents
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
|
Jul 29, 2025 |
Ericsson announces completion of Aduna transaction
| |
|
Aug. 22, 2025 |
Ericsson completes sale of iconectiv
| |
|
Aug. 27, 2025 |
Ericsson announces change to the Executive Team
|
| 11 Ericsson | Third quarter report 2025. October 14, 2025. | Other information | |
Table of Contents
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, October 14, 2025
Telefonaktiebolaget LM Ericsson
Börje Ekholm, President and CEO
Org. No. 556016-0680
Date for next report: January 23, 2026
| 12 Ericsson | Third quarter report 2025. October 14, 2025. | Risk factors | |
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Editor’s note
| Media and analyst briefing | Investors | |
| Ericsson invites media, investors and analysts to a conference call and | Daniel Morris, Vice President, | |
| live video webcast at 09:00 AM CEST on October 14, 2025. | Head of Investor Relations | |
| Phone: +44 7386 657217 | ||
| Link to the webcast, dial-in to audio conference, supporting material | E-mail: investor.relations@ericsson.com | |
| and replay will be available at: | ||
| www.ericsson.com/investors and | Lena Häggblom, Director, | |
| www.ericsson.com/newsroom | Investor Relations | |
| Phone: +46 72 593 27 78 | ||
| For further information, please contact: | E-mail: investor.relations@ericsson.com | |
| Lars Sandström, Senior Vice President, Chief Financial Officer | ||
| Phone: +46 72 161 20 04 | Alan Ganson, Director, | |
| E-mail: investor.relations@ericsson.com | Investor Relations | |
| Phone: +46 70 267 27 30 | ||
| Stella Medlicott, Senior Vice President, Chief Marketing and | E-mail: investor.relations@ericsson.com | |
| Communications Officer | ||
| Phone: +46 73 095 65 39 | Media | |
| E-mail: media.relations@ericsson.com | Ralf Bagner, Head of Media Relations | |
| Phone: +46 76 128 47 89 | ||
| Telefonaktiebolaget LM Ericsson | E-mail: media.relations@ericsson.com | |
| Org. number: 556016-0680 | ||
| Torshamnsgatan 21 | Corporate Communications | |
| SE-164 83 Stockholm | Phone: +46 10 719 69 92 | |
| Phone: +46 10 719 00 00 | E-mail: media.relations@ericsson.com | |
| www.ericsson.com |
| 13 Ericsson | Third quarter report 2025. October 14, 2025. | Editor’s Note | |
Table of Contents
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.
| 14 Ericsson | Third quarter report 2025. October 14, 2025. | Forward-looking statements | |
Table of Contents
Auditors’ Review Report
Introduction
We have reviewed the condensed interim financial information (interim report) of Telefonaktiebolaget LM Ericsson (publ.) as of September 30, 2025, and the nine months period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim 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 interim 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, October 14, 2025
Deloitte AB
Jonas Ståhlberg
Authorized Public Accountant
| 15 Ericsson | Third quarter report 2025. October 14, 2025. | Auditors’ Review Report | |
Table of Contents
Financial statements and other information
| Contents | ||||
| Financial statements (unaudited) | 17 | |||
| Condensed consolidated income statement | 17 | |||
| Condensed statement of comprehensive income (loss) | 17 | |||
| Condensed consolidated balance sheet | 18 | |||
| Condensed consolidated statement of cash flows | 19 | |||
| Condensed consolidated statement of changes in equity | 20 | |||
| Condensed consolidated income statement – isolated quarters | 20 | |||
| Condensed consolidated statement of cash flows – isolated quarters | 21 | |||
| Condensed Parent Company income statement | 22 | |||
| Condensed Parent Company statement of comprehensive income (loss) | 22 | |||
| Condensed Parent Company balance sheet | 23 | |||
| Accounting policies and Explanatory notes (unaudited) | 24 | |||
| Note 1 – Accounting policies and Other changes | 24 | |||
| Note 2 – Segment information | 25 | |||
| Note 3 – Financial income and expenses, net | 29 | |||
| Note 4 – Provisions | 30 | |||
| Note 5 – Financial risk management | 31 | |||
| Note 6 – Cash flow | 32 | |||
| Note 7 – Contingent liabilities and Assets pledged as collateral | 32 | |||
| Note 8 – Share information | 33 | |||
| Note 9 – Employee information | 33 | |||
| Note 10 – Information on iconectiv divestment | 33 | |||
| Alternative performance measures (unaudited) | 34 | |||
| Sales growth adjusted for comparable units and currency | 34 | |||
| Items excluding restructuring charges and impairments of goodwill and intangible assets | 35 | |||
| EBITA and EBITA margin / Adjusted EBITA and EBITA margin | 36 | |||
| Rolling four quarters of net sales and adjusted EBITA margin (%) | 36 | |||
| Gross cash and net cash, end of period | 37 | |||
| Capital employed | 37 | |||
| Capital turnover | 37 | |||
| Return on capital employed | 38 | |||
| Equity ratio | 38 | |||
| Return on equity | 38 | |||
| Operating working capital | 39 | |||
| Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) | 39 | |||
| Sales growth by segment adjusted for comparable units and currency | 40 | |||
| Sales growth by market area adjusted for comparable units and currency | 40 | |||
| Rolling four quarters of net sales by segment | 40 | |||
| Gross margin by segment by quarter | 41 | |||
| EBIT margin by segment by quarter | 41 | |||
| EBITA and EBITA margin by segment by quarter | 42 | |||
| Restructuring charges by function | 43 | |||
| Restructuring charges by segment | 43 | |||
| Adjusted gross income and gross margin by segment | 44 | |||
| Adjusted EBIT (loss) and EBIT margin by segment | 45 | |||
| Rolling four quarters of adjusted EBITA margin by segment (%) | 45 | |||
| Adjusted EBITA and EBITA margin by segment | 46 | |||
| Operating working capital days | 46 | |||
| 16 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements and other information | |
Table of Contents
Financial statements (unaudited)
Condensed consolidated income statement
| Q3 | Jan-Sep | |||||||||||||||||||||||||||
| SEK million |
Note | 2025 | 2024 | Change | 2025 | 2024 | ||||||||||||||||||||||
| Net sales |
2 | 56,239 | 61,794 | -9 | % | 167,396 | 174,967 | |||||||||||||||||||||
| Cost of sales |
-29,462 | -33,609 | -12 | % | -87,433 | -98,309 | ||||||||||||||||||||||
| Gross income |
2 | 26,777 | 28,185 | -5 | % | 79,963 | 76,658 | |||||||||||||||||||||
| Research and development expenses 1) |
-11,510 | -13,140 | -12 | % | -35,754 | -39,637 | ||||||||||||||||||||||
| Selling and administrative expenses 1) |
-7,913 | -9,380 | -16 | % | -24,714 | -41,145 | ||||||||||||||||||||||
| Impairment reversals/losses on trade receivables |
46 | 78 | -41 | % | 112 | -263 | ||||||||||||||||||||||
| Operating expenses |
-19,377 | -22,442 | -14% | -60,356 | -81,045 | |||||||||||||||||||||||
| Other operating income and expenses 2) |
10 | 7,715 | 4 | — | 7,790 | 680 | ||||||||||||||||||||||
| Share of earnings of associated companies |
36 | 27 | 33 | % | 76 | 62 | ||||||||||||||||||||||
| Earnings (loss) before financial items and income tax (EBIT) |
2 | 15,151 | 5,774 | 162 | % | 27,473 | -3,645 | |||||||||||||||||||||
| Financial income and expenses, net |
3 | -212 | -501 | -58 | % | -252 | -1,333 | |||||||||||||||||||||
| Income (loss) after financial items |
14,939 | 5,273 | 183 | % | 27,221 | -4,978 | ||||||||||||||||||||||
| Income tax 1) |
-3,639 | -1,392 | 161 | % | -7,078 | 473 | ||||||||||||||||||||||
| Net income (loss) |
11,300 | 3,881 | 191 | % | 20,143 | -4,505 | ||||||||||||||||||||||
| Net income (loss) attributable to: |
||||||||||||||||||||||||||||
| Owners of the Parent Company |
11,149 | 3,814 | 19,865 | -4,759 | ||||||||||||||||||||||||
| Non-controlling interests |
151 | 67 | 278 | 254 | ||||||||||||||||||||||||
| Other information |
||||||||||||||||||||||||||||
| Average number of shares, basic (million) |
8 | 3,333 | 3,333 | 3,333 | 3,332 | |||||||||||||||||||||||
| Earnings (loss) per share, basic (SEK) 3) |
8 | 3.34 | 1.14 | 5.96 | -1.43 | |||||||||||||||||||||||
| Earnings (loss) per share, diluted (SEK) 3) 4) |
8 | 3.33 | 1.14 | 5.94 | -1.43 | |||||||||||||||||||||||
| 1) | Jan-Sep 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-Sep 2025 and Q3 2025 includes a gain of SEK 7.6 billion due to the divestment of iconectiv. Jan-Sep 2024 includes a goodwill impairment of SEK -1.3 billion reported in the second quarter, and a one-time gain of SEK 1.9 billion reported in the first quarter from the resolution of a commercial dispute. |
| 3) | Based on net income attributable to owners of the Parent Company. |
| 4) | Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share. |
Condensed statement of comprehensive income (loss)
| Q3 | Jan-Sep | |||||||||||||||||||
| SEK million |
2025 | 2024 | 2025 | 2024 | ||||||||||||||||
| Net income (loss) |
11,300 | 3,881 | 20,143 | -4,505 | ||||||||||||||||
| Other comprehensive income |
||||||||||||||||||||
| Items that will not be reclassified to profit or loss |
||||||||||||||||||||
| Remeasurements of defined benefit pension plans |
5,698 | 1,103 | 4,881 | 1,248 | ||||||||||||||||
| Revaluation of credit risk on borrowings |
-93 | 109 | -2 | -439 | ||||||||||||||||
| Tax on items that will not be reclassified to profit or loss |
-1,143 | -365 | -1,130 | -169 | ||||||||||||||||
| Items that have been or may be reclassified to profit or loss |
||||||||||||||||||||
| Cash flow hedge reserve |
||||||||||||||||||||
| Gains/ losses arising during the period |
29 | 1,521 | 4,684 | -764 | ||||||||||||||||
| Reclassification adjustments on gains/ losses included in profit or loss |
-59 | 222 | 263 | 476 | ||||||||||||||||
| Translation reserves |
||||||||||||||||||||
| Changes in translation reserves |
-1,029 | -3,247 | -10,927 | 1,273 | ||||||||||||||||
| Reclassification to profit or loss |
1,304 | 22 | 1,358 | -82 | ||||||||||||||||
| Share of other comprehensive income of associated companies |
-8 | -16 | -64 | 11 | ||||||||||||||||
| Tax on items that have been or may be reclassified to profit or loss |
6 | -359 | -1,019 | 59 | ||||||||||||||||
| Total other comprehensive income (loss),net of tax |
4,705 | -1,010 | -1,956 | 1,613 | ||||||||||||||||
| Total comprehensive income (loss) |
16,005 | 2,871 | 18,187 | -2,892 | ||||||||||||||||
| Total comprehensive income (loss) attributable to: |
||||||||||||||||||||
| Owners of the Parent Company |
15,872 | 2,764 | 17,758 | -3,104 | ||||||||||||||||
| Non-controlling interests |
133 | 107 | 429 | 212 | ||||||||||||||||
| 17 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements | |
Table of Contents
Condensed consolidated balance sheet
| SEK million |
Note | Sep 30 2025 |
Dec 31 2024 |
|||||||||||||
| Assets |
||||||||||||||||
| Non-current assets |
||||||||||||||||
| Intangible assets |
||||||||||||||||
| Capitalized development expenses |
3,964 | 4,593 | ||||||||||||||
| Goodwill |
47,996 | 56,077 | ||||||||||||||
| Customer relationships, IPR and other intangible assets |
5,858 | 7,954 | ||||||||||||||
| Property, plant and equipment |
8,881 | 10,545 | ||||||||||||||
|
Right-of-use assets |
6,575 | 6,487 | ||||||||||||||
| Financial assets |
||||||||||||||||
| Equity in associated companies |
1,797 | 1,179 | ||||||||||||||
| Other investments in shares and participations |
5 | 1,648 | 2,029 | |||||||||||||
| Customer finance, non-current |
5 | 242 | 190 | |||||||||||||
| Interest-bearing securities, non-current |
5 | 37,370 | 19,440 | |||||||||||||
| Other financial assets, non-current |
5 | 5,432 | 5,161 | |||||||||||||
| Deferred tax assets |
21,573 | 24,412 | ||||||||||||||
| 141,336 | 138,067 | |||||||||||||||
| Current assets |
||||||||||||||||
| Inventories |
27,519 | 27,125 | ||||||||||||||
| Contract assets |
7,494 | 6,924 | ||||||||||||||
| Trade receivables |
5 | 38,136 | 44,151 | |||||||||||||
| Customer finance, current |
5 | 1,290 | 4,332 | |||||||||||||
| Current tax assets |
5,172 | 6,083 | ||||||||||||||
| Other current receivables |
10,489 | 9,261 | ||||||||||||||
| Interest-bearing securities, current |
5 | 8,345 | 12,546 | |||||||||||||
| Cash and cash equivalents |
5 | 42,695 | 43,885 | |||||||||||||
| 141,140 | 154,307 | |||||||||||||||
| Total assets |
282,476 | 292,374 | ||||||||||||||
| Equity and liabilities |
||||||||||||||||
| Equity |
||||||||||||||||
| Stockholders’ equity |
102,658 | 94,284 | ||||||||||||||
| Non-controlling interest in equity of subsidiaries |
-164 | -1,301 | ||||||||||||||
| 102,494 | 92,983 | |||||||||||||||
| Non-current liabilities |
||||||||||||||||
| Post-employment benefits |
19,301 | 24,448 | ||||||||||||||
| Provisions, non-current |
4 | 2,478 | 3,511 | |||||||||||||
| Deferred tax liabilities |
1,349 | 1,295 | ||||||||||||||
| Borrowings, non-current |
5 | 29,872 | 31,904 | |||||||||||||
| Lease liabilities, non-current |
5,581 | 5,363 | ||||||||||||||
| Other non-current liabilities |
899 | 996 | ||||||||||||||
| 59,480 | 67,517 | |||||||||||||||
| Current liabilities |
||||||||||||||||
| Provisions, current |
4 | 5,345 | 8,204 | |||||||||||||
| Borrowings, current |
5 | 6,680 | 6,137 | |||||||||||||
| Lease liabilities, current |
1,809 | 2,132 | ||||||||||||||
| Contract liabilities |
40,642 | 41,229 | ||||||||||||||
| Trade payables |
5 | 25,352 | 30,173 | |||||||||||||
| Current tax liabilities |
6,069 | 3,322 | ||||||||||||||
| Other current liabilities |
34,605 | 40,677 | ||||||||||||||
| 120,502 | 131,874 | |||||||||||||||
| Total equity and liabilities |
282,476 | 292,374 | ||||||||||||||
| 18 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements | |
Table of Contents
Condensed consolidated statement of cash flows
| Q3 | Jan-Sep | |||||||||||||||||||||||
| SEK million |
Note | 2025 | 2024 | 2025 | 2024 | |||||||||||||||||||
| Operating activities |
||||||||||||||||||||||||
| Net income (loss) |
11,300 | 3,881 | 20,143 | -4,505 | ||||||||||||||||||||
| Adjustments for |
||||||||||||||||||||||||
| Taxes |
3,647 | 1,397 | 7,350 | -23 | ||||||||||||||||||||
| Earnings/ dividends in associated companies |
50 | 110 | 30 | 72 | ||||||||||||||||||||
| Depreciation, amortization and impairment losses |
6 | 2,129 | 2,292 | 7,056 | 22,919 | |||||||||||||||||||
| Other |
-7,549 | 592 | -7,844 | 1,356 | ||||||||||||||||||||
| 9,577 | 8,272 | 26,735 | 19,819 | |||||||||||||||||||||
| Changes in operating net assets |
||||||||||||||||||||||||
| Inventories |
-680 | 1,358 | -2,738 | 7,332 | ||||||||||||||||||||
| Customer finance, current and non-current |
372 | 1,211 | 2,627 | 2,980 | ||||||||||||||||||||
| Trade receivables and contract assets |
-889 | 3,524 | -1,013 | 5,617 | ||||||||||||||||||||
| Trade payables |
1,102 | -3 | -1,106 | -2,084 | ||||||||||||||||||||
| Provisions and post-employment benefits |
-565 | 955 | -3,178 | -1,011 | ||||||||||||||||||||
| Contract liabilities |
-2,869 | -117 | 4,398 | 5,005 | ||||||||||||||||||||
| Other operating assets and liabilities, net |
3,047 | 859 | -4,970 | -2,851 | ||||||||||||||||||||
| -482 | 7,787 | -5,980 | 14,988 | |||||||||||||||||||||
| Interest received |
433 | 506 | 1,567 | 1,282 | ||||||||||||||||||||
| Interest paid |
-328 | -526 | -1,798 | -2,500 | ||||||||||||||||||||
| Taxes paid |
-1,261 | -1,642 | -4,077 | -4,841 | ||||||||||||||||||||
| Cash flow from operating activities |
7,939 | 14,397 | 16,447 | 28,748 | ||||||||||||||||||||
| Investing activities |
||||||||||||||||||||||||
| Investments in property, plant and equipment |
6 | -491 | -540 | -1,781 | -1,673 | |||||||||||||||||||
| Sales of property, plant and equipment |
57 | 36 | 136 | 102 | ||||||||||||||||||||
| Acquisitions/divestments of subsidiaries and other operations, net |
10 | 10,064 | -62 | 10,201 | -216 | |||||||||||||||||||
| Product development |
6 | -286 | -264 | -786 | -977 | |||||||||||||||||||
| Purchase of interest-bearing securities |
-9,633 | -5,517 | -28,448 | -12,980 | ||||||||||||||||||||
| Sales of interest-bearing securities |
3,549 | 4,937 | 11,821 | 8,642 | ||||||||||||||||||||
| Other investing activities |
-106 | 1,113 | 2,454 | -523 | ||||||||||||||||||||
| Cash flow from investing activities |
3,154 | -297 | -6,403 | -7,625 | ||||||||||||||||||||
| Financing activities |
||||||||||||||||||||||||
| Proceeds from issuance of borrowings |
— | 1,161 | 198 | 3,130 | ||||||||||||||||||||
| Repayment of borrowings |
-26 | -5,127 | -537 | -15,544 | ||||||||||||||||||||
| Dividends paid |
-1 | -8 | -4,811 | -4,719 | ||||||||||||||||||||
| Repayment of lease liabilities |
-507 | -607 | -1,654 | -1,866 | ||||||||||||||||||||
| Other financing activities |
-643 | 356 | 1,424 | 581 | ||||||||||||||||||||
| Cash flow from financing activities |
-1,177 | -4,225 | -5,380 | -18,418 | ||||||||||||||||||||
| Effect of exchange rate changes on cash |
-841 | -1,288 | -5,854 | -572 | ||||||||||||||||||||
| Net change in cash and cash equivalents |
9,075 | 8,587 | -1,190 | 2,133 | ||||||||||||||||||||
| Cash and cash equivalents, beginning of period |
33,620 | 28,736 | 43,885 | 35,190 | ||||||||||||||||||||
| Cash and cash equivalents, end of period |
42,695 | 37,323 | 42,695 | 37,323 | ||||||||||||||||||||
| 19 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements | |
Table of Contents
| Condensed consolidated statement of changes in equity |
| |||||||||||||||||||||||||||
| Jan-Sep
|
||||||||||||||||||||||||||||
| SEK million |
2025 | 2024 | ||||||||||||||||||||||||||
| Opening balance |
92,983 | 97,408 | ||||||||||||||||||||||||||
| Total comprehensive income (loss) |
18,187 | -2,892 | ||||||||||||||||||||||||||
| Sale/repurchase of own shares |
-116 | -21 | ||||||||||||||||||||||||||
| Share issue, net |
116 | 21 | ||||||||||||||||||||||||||
| Long-term variable compensation plans |
115 | 58 | ||||||||||||||||||||||||||
| Dividends to shareholders 1) |
-9,545 | -9,219 | ||||||||||||||||||||||||||
| Transactions with non-controlling interests |
754 | - | ||||||||||||||||||||||||||
| Closing balance |
|
102,494 | 85,355 | |||||||||||||||||||||||||
| 1) Jan-Sep includes the second payment of SEK 4,769 (4,498) million of dividend approved by the Annual General Meeting on March 25, 2025, which was paid out on October 2, 2025. |
| |||||||||||||||||||||||||||
| Condensed consolidated income statement – isolated quarters |
| |||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||
| Cost of sales |
-29,462 | -29,483 | -28,488 | -40,206 | -33,609 | -34,033 | -30,667 | |||||||||||||||||||||
| Gross income |
26,777 | 26,649 | 26,537 | 32,707 | 28,185 | 25,815 | 22,658 | |||||||||||||||||||||
| Research and development expenses 1) |
-11,510 | -12,212 | -12,032 | -13,877 | -13,140 | -14,926 | -11,571 | |||||||||||||||||||||
| Selling and administrative expenses 1) |
-7,913 | -8,180 | -8,621 | -10,512 | -9,380 | -23,074 | -8,691 | |||||||||||||||||||||
| Impairment reversals/losses on trade receivables |
46 | 34 | 32 | -2 | 78 | -84 | -257 | |||||||||||||||||||||
| Operating expenses |
-19,377 | -20,358 | -20,621 | -24,391 | -22,442 | -38,084 | -20,519 | |||||||||||||||||||||
| Other operating income and expenses 2) |
7,715 | 67 | 8 | -50 | 4 | -1,299 | 1,975 | |||||||||||||||||||||
| Share of earnings of associated companies |
36 | 33 | 7 | -308 | 27 | 49 | -14 | |||||||||||||||||||||
| Earnings (loss) before financial items and income tax (EBIT) |
15,151 | 6,391 | 5,931 | 7,958 | 5,774 | -13,519 | 4,100 | |||||||||||||||||||||
| Financial income and expenses, net |
-212 | 34 | -74 | -391 | -501 | -361 | -471 | |||||||||||||||||||||
| Income (loss) after financial items |
14,939 | 6,425 | 5,857 | 7,567 | 5,273 | -13,880 | 3,629 | |||||||||||||||||||||
| Income tax 1) |
-3,639 | -1,799 | -1,640 | -2,688 | -1,392 | 2,881 | -1,016 | |||||||||||||||||||||
| Net income (loss) |
11,300 | 4,626 | 4,217 | 4,879 | 3,881 | -10,999 | 2,613 | |||||||||||||||||||||
| Net income (loss) attributable to: |
||||||||||||||||||||||||||||
| Owners of the Parent Company |
11,149 | 4,567 | 4,149 | 4,779 | 3,814 | -11,132 | 2,559 | |||||||||||||||||||||
| Non-controlling interests |
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 | 3,332 | 3,331 | |||||||||||||||||||||
| Earnings (loss) per share, basic (SEK) 3) |
3.34 | 1.37 | 1.25 | 1.44 | 1.14 | -3.34 | 0.77 | |||||||||||||||||||||
| Earnings (loss) per share, diluted (SEK) 3) 4) |
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) | 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. |
| 20 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements | |
Table of Contents
| Condensed consolidated statement of cash flows – isolated quarters |
| |||||||||||||||||||||||||||||||
| 2025 |
2024 |
|||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Operating activities |
||||||||||||||||||||||||||||||||
| Net income (loss) |
11,300 | 4,626 | 4,217 | 4,879 | 3,881 | -10,999 | 2,613 | |||||||||||||||||||||||||
| Adjustments for |
||||||||||||||||||||||||||||||||
| Taxes |
3,647 | 1,949 | 1,754 | 2,563 | 1,397 | -2,693 | 1,273 | |||||||||||||||||||||||||
| Earnings/ dividends in associated companies |
50 | -22 | 2 | 387 | 110 | -41 | 3 | |||||||||||||||||||||||||
| Depreciation, amortization and impairment losses |
2,129 | 2,177 | 2,750 | 2,815 | 2,292 | 18,015 | 2,612 | |||||||||||||||||||||||||
| Other |
-7,549 | -410 | 115 | 528 | 592 | 424 | 340 | |||||||||||||||||||||||||
| 9,577 | 8,320 | 8,838 | 11,172 | 8,272 | 4,706 | 6,841 | ||||||||||||||||||||||||||
| Changes in operating net assets |
||||||||||||||||||||||||||||||||
| Inventories |
-680 | 210 | -2,268 | 2,876 | 1,358 | 3,239 | 2,735 | |||||||||||||||||||||||||
| Customer finance, current and non-current |
372 | 391 | 1,864 | -225 | 1,211 | -365 | 2,134 | |||||||||||||||||||||||||
| Trade receivables and contract assets |
-889 | 188 | -312 | -3,041 | 3,524 | 1,857 | 236 | |||||||||||||||||||||||||
| Trade payables |
1,102 | -636 | -1,572 | 2,580 | -3 | 1,941 | -4,022 | |||||||||||||||||||||||||
| Provisions and post-employment benefits |
-565 | -298 | -2,315 | 958 | 955 | 304 | -2,270 | |||||||||||||||||||||||||
| Contract liabilities |
-2,869 | -1,329 | 8,596 | -407 | -117 | -1,398 | 6,520 | |||||||||||||||||||||||||
| Other operating assets and liabilities, net |
3,047 | -1,187 | -6,830 | 5,088 | 859 | 890 | -4,600 | |||||||||||||||||||||||||
| -482 | -2,661 | -2,837 | 7,829 | 7,787 | 6,468 | 733 | ||||||||||||||||||||||||||
| Interest received |
433 | 458 | 676 | 518 | 506 | 385 | 391 | |||||||||||||||||||||||||
| Interest paid |
-328 | -699 | -771 | -543 | -526 | -677 | -1,297 | |||||||||||||||||||||||||
| Taxes paid |
-1,261 | -1,268 | -1,548 | -1,463 | -1,642 | -1,606 | -1,593 | |||||||||||||||||||||||||
| Cash flow from operating activities |
7,939 | 4,150 | 4,358 | 17,513 | 14,397 | 9,276 | 5,075 | |||||||||||||||||||||||||
| Investing activities |
||||||||||||||||||||||||||||||||
| Investments in property, plant and equipment |
-491 | -561 | -729 | -667 | -540 | -699 | -434 | |||||||||||||||||||||||||
| Sales of property, plant and equipment |
57 | 40 | 39 | 14 | 36 | 42 | 24 | |||||||||||||||||||||||||
| Acquisitions/divestments of subs. and other operations, net |
10,064 | 141 | -4 | -95 | -62 | -48 | -106 | |||||||||||||||||||||||||
| Product development |
-286 | -193 | -307 | -323 | -264 | -327 | -386 | |||||||||||||||||||||||||
| Purchase of interest-bearing securities |
-9,633 | -12,295 | -6,520 | -6,642 | -5,517 | -5,845 | -1,618 | |||||||||||||||||||||||||
| Sales of interest-bearing securities |
3,549 | 2,568 | 5,704 | 2,605 | 4,937 | 1,501 | 2,204 | |||||||||||||||||||||||||
| Other investing activities |
-106 | -562 | 3,122 | -3,219 | 1,113 | -611 | -1,025 | |||||||||||||||||||||||||
| Cash flow from investing activities |
3,154 | -10,862 | 1,305 | -8,327 | -297 | -5,987 | -1,341 | |||||||||||||||||||||||||
| Financing activities |
||||||||||||||||||||||||||||||||
| Proceeds from issuance of borrowings |
- | 198 | - | 485 | 1,161 | 2 | 1,967 | |||||||||||||||||||||||||
| Repayment of borrowings |
-26 | -432 | -79 | -373 | -5,127 | -16 | -10,401 | |||||||||||||||||||||||||
| Dividends paid |
-1 | -4,810 | - | -4,514 | -8 | -4,711 | - | |||||||||||||||||||||||||
| Repayment of lease liabilities |
-507 | -554 | -593 | -626 | -607 | -658 | -601 | |||||||||||||||||||||||||
| Other financing activities |
-643 | 2,127 | -60 | -419 | 356 | -313 | 538 | |||||||||||||||||||||||||
| Cash flow from financing activities |
-1,177 | -3,471 | -732 | -5,447 | -4,225 | -5,696 | -8,497 | |||||||||||||||||||||||||
| Effect of exchange rate changes on cash |
-841 | -787 | -4,226 | 2,823 | -1,288 | -705 | 1,421 | |||||||||||||||||||||||||
| Net change in cash and cash equivalents |
9,075 | -10,970 | 705 | 6,562 | 8,587 | -3,112 | -3,342 | |||||||||||||||||||||||||
| Cash and cash equivalents, beginning of period |
33,620 | 44,590 | 43,885 | 37,323 | 28,736 | 31,848 | 35,190 | |||||||||||||||||||||||||
| Cash and cash equivalents, end of period |
42,695 | 33,620 | 44,590 | 43,885 | 37,323 | 28,736 | 31,848 | |||||||||||||||||||||||||
| 21 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements | |
Table of Contents
| Condensed Parent Company income statement |
||||||||||||||||||
| Q3 | Jan-Sep | |||||||||||||||||
| SEK million |
2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net sales |
- | - | - | - | ||||||||||||||
| Cost of sales |
- | - | - | - | ||||||||||||||
| Gross income |
- | - | - | - | ||||||||||||||
| Operating expenses |
-371 | -252 | -1,237 | -983 | ||||||||||||||
| Other operating income and expenses |
640 | 747 | 1,956 | 4,245 | ||||||||||||||
| EBIT |
269 | 495 | 719 | 3,262 | ||||||||||||||
| Financial net |
9,295 | 2,630 | 28,149 | -7,273 | ||||||||||||||
| Income (loss) after financial items |
9,564 | 3,125 | 28,868 | -4,011 | ||||||||||||||
| Transfers to (-) / from untaxed reserves |
- | - | - | - | ||||||||||||||
| Income tax |
-335 | -159 | -514 | -668 | ||||||||||||||
| Net income (loss) |
9,229 | 2,966 | 28,354 | -4,679 | ||||||||||||||
|
Condensed Parent Company statement of comprehensive income (loss) |
||||||||||||||||||
| Q3 | Jan-Sep | |||||||||||||||||
| SEK million |
2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Net income (loss) |
9,229 | 2,966 | 28,354 | -4,679 | ||||||||||||||
| Other comprehensive income (loss), net of tax |
- | - | - | - | ||||||||||||||
| Total comprehensive income (loss) |
9,229 | 2,966 | 28,354 | -4,679 | ||||||||||||||
| 22 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements | |
Table of Contents
| Condensed Parent Company balance sheet | ||||||||
| SEK million |
Sep 30 2025 |
Dec 31 2024 |
||||||
| Assets |
||||||||
| Fixed assets |
||||||||
| Intangible assets |
146 | 160 | ||||||
| Tangible assets |
253 | 295 | ||||||
| Financial assets 1) |
134,820 | 121,721 | ||||||
| 135,219 | 122,176 | |||||||
| Current assets |
||||||||
| Receivables |
23,896 | 19,876 | ||||||
| Short-term investments |
8,128 | 12,222 | ||||||
| Cash and cash equivalents |
30,757 | 27,073 | ||||||
| 62,781 | 59,171 | |||||||
| Total assets |
198,000 | 181,347 | ||||||
| Stockholders’ equity, provisions and liabilities |
||||||||
| Equity |
||||||||
| Restricted equity |
48,351 | 48,235 | ||||||
| Non-restricted equity |
41,090 | 22,335 | ||||||
| 89,441 | 70,570 | |||||||
| Provisions |
190 | 144 | ||||||
| Non-current liabilities |
29,879 | 31,884 | ||||||
| Current liabilities |
78,490 | 78,749 | ||||||
| Total stockholders’ equity, provisions and liabilities |
198,000 | 181,347 | ||||||
| 1) Of which interest-bearing securities, non-current |
37,370 | 19,439 | ||||||
| 23 Ericsson | Third quarter report 2025. October 14, 2025. | Financial statements | |
Table of Contents
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 September 30, 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.
| 24 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
Note 2 – Segment information
Net sales by segment by quarter
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
35,424 | 35,747 | 35,643 | 46,797 | 40,016 | 37,679 | 33,715 | |||||||||||||||||||||||||
| Of which Products |
26,531 | 27,622 | 28,060 | 36,592 | 31,242 | 28,583 | 25,397 | |||||||||||||||||||||||||
| Of which Services |
8,893 | 8,125 | 7,583 | 10,205 | 8,774 | 9,096 | 8,318 | |||||||||||||||||||||||||
| Cloud Software and Services |
15,346 | 14,363 | 12,975 | 19,457 | 14,953 | 15,180 | 13,045 | |||||||||||||||||||||||||
| Of which Products |
5,431 | 5,407 | 4,719 | 7,826 | 5,240 | 4,814 | 4,529 | |||||||||||||||||||||||||
| Of which Services |
9,915 | 8,956 | 8,256 | 11,631 | 9,713 | 10,366 | 8,516 | |||||||||||||||||||||||||
| Enterprise |
5,058 | 5,548 | 5,933 | 6,090 | 6,319 | 6,484 | 5,970 | |||||||||||||||||||||||||
| Other |
411 | 474 | 474 | 569 | 506 | 505 | 595 | |||||||||||||||||||||||||
| Total |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Sequential change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
-1% | 0% | -24% | 17% | 6% | 12% | -25% | |||||||||||||||||||||||||
| Of which Products |
-4% | -2% | -23% | 17% | 9% | 13% | -27% | |||||||||||||||||||||||||
| Of which Services |
9% | 7% | -26% | 16% | -4% | 9% | -19% | |||||||||||||||||||||||||
| Cloud Software and Services |
7% | 11% | -33% | 30% | -1% | 16% | -33% | |||||||||||||||||||||||||
| Of which Products |
0% | 15% | -40% | 49% | 9% | 6% | -36% | |||||||||||||||||||||||||
| Of which Services |
11% | 8% | -29% | 20% | -6% | 22% | -32% | |||||||||||||||||||||||||
| Enterprise |
-9% | -6% | -3% | -4% | -3% | 9% | -11% | |||||||||||||||||||||||||
| Other |
-13% | 0% | -17% | 12% | 0% | -15% | -5% | |||||||||||||||||||||||||
| Total |
0% | 2% | -25% | 18% | 3% | 12% | -26% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year over year change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
-11% | -5% | 6% | 4% | -4% | -11% | -21% | |||||||||||||||||||||||||
| Of which Products |
-15% | -3% | 10% | 5% | -2% | -13% | -21% | |||||||||||||||||||||||||
| Of which Services |
1% | -11% | -9% | -1% | -10% | -6% | -19% | |||||||||||||||||||||||||
| Cloud Software and Services |
3% | -5% | -1% | -1% | -4% | 0% | -3% | |||||||||||||||||||||||||
| Of which Products |
4% | 12% | 4% | 11% | 5% | -7% | 2% | |||||||||||||||||||||||||
| Of which Services |
2% | -14% | -3% | -7% | -8% | 4% | -5% | |||||||||||||||||||||||||
| Enterprise |
-20% | -14% | -1% | -9% | -5% | 2% | 0% | |||||||||||||||||||||||||
| Other |
-19% | -6% | -20% | -9% | -28% | -2% | -14% | |||||||||||||||||||||||||
| Total |
-9% | -6% | 3% | 1% | -4% | -7% | -15% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
106,814 | 71,390 | 35,643 | 158,207 | 111,410 | 71,394 | 33,715 | |||||||||||||||||||||||||
| Of which Products |
82,213 | 55,682 | 28,060 | 121,814 | 85,222 | 53,980 | 25,397 | |||||||||||||||||||||||||
| Of which Services |
24,601 | 15,708 | 7,583 | 36,393 | 26,188 | 17,414 | 8,318 | |||||||||||||||||||||||||
| Cloud Software and Services |
42,684 | 27,338 | 12,975 | 62,635 | 43,178 | 28,225 | 13,045 | |||||||||||||||||||||||||
| Of which Products |
15,557 | 10,126 | 4,719 | 22,409 | 14,583 | 9,343 | 4,529 | |||||||||||||||||||||||||
| Of which Services |
27,127 | 17,212 | 8,256 | 40,226 | 28,595 | 18,882 | 8,516 | |||||||||||||||||||||||||
| Enterprise |
16,539 | 11,481 | 5,933 | 24,863 | 18,773 | 12,454 | 5,970 | |||||||||||||||||||||||||
| Other |
1,359 | 948 | 474 | 2,175 | 1,606 | 1,100 | 595 | |||||||||||||||||||||||||
| Total |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year over year change, percent |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
-4% | 0% | 6% | -8% | -12% | -16% | -21% | |||||||||||||||||||||||||
| Of which Products |
-4% | 3% | 10% | -7% | -12% | -17% | -21% | |||||||||||||||||||||||||
| Of which Services |
-6% | -10% | -9% | -9% | -12% | -13% | -19% | |||||||||||||||||||||||||
| Cloud Software and Services |
-1% | -3% | -1% | -2% | -2% | -1% | -3% | |||||||||||||||||||||||||
| Of which Products |
7% | 8% | 4% | 3% | 0% | -3% | 2% | |||||||||||||||||||||||||
| Of which Services |
-5% | -9% | -3% | -4% | -3% | 0% | -5% | |||||||||||||||||||||||||
| Enterprise |
-12% | -8% | -1% | -3% | -1% | 1% | 0% | |||||||||||||||||||||||||
| Other |
-15% | -14% | -20% | -14% | -16% | -9% | -14% | |||||||||||||||||||||||||
| Total |
-4% | -2% | 3% | -6% | -9% | -11% | -15% | |||||||||||||||||||||||||
| 25 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
| Gross income by segment by quarter | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
17,705 | 17,638 | 18,112 | 22,326 | 19,332 | 17,139 | 14,851 | |||||||||||||||||||||||||
| Cloud Software and Services |
6,463 | 5,964 | 5,069 | 7,243 | 5,537 | 5,407 | 4,834 | |||||||||||||||||||||||||
| Enterprise |
2,609 | 3,045 | 3,338 | 3,306 | 3,307 | 3,310 | 2,865 | |||||||||||||||||||||||||
| Other |
0 | 2 | 18 | -168 | 9 | -41 | 108 | |||||||||||||||||||||||||
| Total |
26,777 | 26,649 | 26,537 | 32,707 | 28,185 | 25,815 | 22,658 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
53,455 | 35,750 | 18,112 | 73,648 | 51,322 | 31,990 | 14,851 | |||||||||||||||||||||||||
| Cloud Software and Services |
17,496 | 11,033 | 5,069 | 23,021 | 15,778 | 10,241 | 4,834 | |||||||||||||||||||||||||
| Enterprise |
8,992 | 6,383 | 3,338 | 12,788 | 9,482 | 6,175 | 2,865 | |||||||||||||||||||||||||
| Other |
20 | 20 | 18 | -92 | 76 | 67 | 108 | |||||||||||||||||||||||||
| Total |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
7,075 | 6,376 | 7,040 | 9,267 | 7,492 | 4,750 | 4,156 | |||||||||||||||||||||||||
| Cloud Software and Services |
1,721 | 840 | 71 | 1,099 | -443 | -728 | -363 | |||||||||||||||||||||||||
| Enterprise |
6,649 | -870 | -1,014 | -1,876 | -1,201 | -17,424 | -1,582 | |||||||||||||||||||||||||
| Other |
-294 | 45 | -166 | -532 | -74 | -117 | 1,889 | |||||||||||||||||||||||||
| Total |
15,151 | 6,391 | 5,931 | 7,958 | 5,774 | -13,519 | 4,100 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
20,491 | 13,416 | 7,040 | 25,665 | 16,398 | 8,906 | 4,156 | |||||||||||||||||||||||||
| Cloud Software and Services |
2,632 | 911 | 71 | -435 | -1,534 | -1,091 | -363 | |||||||||||||||||||||||||
| Enterprise |
4,765 | -1,884 | -1,014 | -22,083 | -20,207 | -19,006 | -1,582 | |||||||||||||||||||||||||
| Other |
-415 | -121 | -166 | 1,166 | 1,698 | 1,772 | 1,889 | |||||||||||||||||||||||||
| Total |
27,473 | 12,322 | 5,931 | 4,313 | -3,645 | -9,419 | 4,100 | |||||||||||||||||||||||||
| 26 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
| Net sales by market area by quarter | ||||||||||||||||||||||||||||||||
| 2025 | 2024 3) | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Americas |
19,781 | 19,760 | 20,762 | 25,737 | 23,366 | 19,838 | 16,449 | |||||||||||||||||||||||||
| Europe, Middle East and Africa 1) 2) |
16,730 | 16,193 | 14,475 | 21,865 | 16,893 | 17,265 | 15,287 | |||||||||||||||||||||||||
| South East Asia, Oceania and India |
7,097 | 5,505 | 7,226 | 8,449 | 7,702 | 7,694 | 8,565 | |||||||||||||||||||||||||
| North East Asia |
3,825 | 3,766 | 3,215 | 7,090 | 3,686 | 4,561 | 3,424 | |||||||||||||||||||||||||
| Other 1) 2) |
8,806 | 10,908 | 9,347 | 9,772 | 10,147 | 10,490 | 9,600 | |||||||||||||||||||||||||
| Total |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||||
| 1) Of which in Sweden |
863 | 686 | 461 | 597 | 432 | 583 | 729 | |||||||||||||||||||||||||
| 2) Of which in EU |
8,213 | 8,223 | 7,566 | 10,935 | 8,157 | 8,606 | 7,566 | |||||||||||||||||||||||||
| 2025 | 2024 3) | |||||||||||||||||||||||||||||||
| Sequential change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Americas |
0% | -5% | -19% | 10% | 18% | 21% | -12% | |||||||||||||||||||||||||
| Europe, Middle East and Africa 1) 2) |
3% | 12% | -34% | 29% | -2% | 13% | -33% | |||||||||||||||||||||||||
| South East Asia, Oceania and India |
29% | -24% | -14% | 10% | 0% | -10% | -27% | |||||||||||||||||||||||||
| North East Asia |
2% | 17% | -55% | 92% | -19% | 33% | -62% | |||||||||||||||||||||||||
| Other 1) 2) |
-19% | 17% | -4 | % | -4 | % | -3 | % | 9 | % | -1 | % | ||||||||||||||||||||
| Total |
0% | 2% | -25% | 18% | 3% | 12% | -26% | |||||||||||||||||||||||||
| 1) Of which in Sweden |
26% | 49% | -23% | 38% | -26% | -20% | 115% | |||||||||||||||||||||||||
| 2) Of which in EU |
0% | 9% | -31% | 34% | -5% | 14% | -25% | |||||||||||||||||||||||||
| 2025 | 2024 3) | |||||||||||||||||||||||||||||||
| Year over year change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Americas |
-15% | 0% | 26% | 38% | 37% | 11% | -17% | |||||||||||||||||||||||||
| Europe, Middle East and Africa 1) 2) |
-1% | -6% | -5% | -4% | -8% | -3% | -1% | |||||||||||||||||||||||||
| South East Asia, Oceania and India |
-8% | -28% | -16% | -28% | -44% | -44% | -38% | |||||||||||||||||||||||||
| North East Asia |
4% | -17% | -6% | -22% | -31% | -10% | -22% | |||||||||||||||||||||||||
| Other 1) 2) |
-13% | 4% | -3 | % | 1 | % | 1 | % | 6 | % | 6 | % | ||||||||||||||||||||
| Total |
-9% | -6% | 3% | 1% | -4% | -7% | -15% | |||||||||||||||||||||||||
| 1) Of which in Sweden |
100% | 18% | -37% | 76% | -5% | 58% | 19% | |||||||||||||||||||||||||
| 2) Of which in EU |
1% | -4% | 0% | 8% | 4% | 7% | -8% | |||||||||||||||||||||||||
| 2025 | 2024 3) | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Americas |
60,303 | 40,522 | 20,762 | 85,390 | 59,653 | 36,287 | 16,449 | |||||||||||||||||||||||||
| Europe, Middle East and Africa 1) 2) |
47,398 | 30,668 | 14,475 | 71,310 | 49,445 | 32,552 | 15,287 | |||||||||||||||||||||||||
| South East Asia, Oceania and India |
19,828 | 12,731 | 7,226 | 32,410 | 23,961 | 16,259 | 8,565 | |||||||||||||||||||||||||
| North East Asia |
10,806 | 6,981 | 3,215 | 18,761 | 11,671 | 7,985 | 3,424 | |||||||||||||||||||||||||
| Other 1) 2) |
29,061 | 20,255 | 9,347 | 40,009 | 30,237 | 20,090 | 9,600 | |||||||||||||||||||||||||
| Total |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||||
| 1) Of which in Sweden |
2,010 | 1,147 | 461 | 2,341 | 1,744 | 1,312 | 729 | |||||||||||||||||||||||||
| 2) Of which in EU |
24,002 | 15,789 | 7,566 | 35,264 | 24,329 | 16,172 | 7,566 | |||||||||||||||||||||||||
| 2025 | 2024 3) | |||||||||||||||||||||||||||||||
| Year to date, year over year change, percent |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Americas |
1% | 12% | 26% | 16% | 9% | -4% | -17% | |||||||||||||||||||||||||
| Europe, Middle East and Africa 1) 2) |
-4% | -6% | -5% | -4% | -4% | -2% | -1% | |||||||||||||||||||||||||
| South East Asia, Oceania and India |
-17% | -22% | -16% | -39% | -42% | -41% | -38% | |||||||||||||||||||||||||
| North East Asia |
-7% | -13% | -6% | -22% | -21% | -15% | -22% | |||||||||||||||||||||||||
| Other 1) 2) |
-4% | 1% | -3 | % | 4 | % | 4 | % | 6 | % | 6 | % | ||||||||||||||||||||
| Total |
-4% | -2% | 3% | -6% | -9% | -11% | -15% | |||||||||||||||||||||||||
| 1) Of which in Sweden |
15% | -13% | -37% | 32% | 22% | 34% | 19% | |||||||||||||||||||||||||
| 2)Of which in EU |
-1% | -2% | 0% | 3% | 1% | -1% | -8% | |||||||||||||||||||||||||
3) 2024 has been restated to reflect the changes in the market area structure, see note 1 “Accounting policies and Other changes” for more information.
| 27 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
Net sales by market area by segment
| Q3 2025 | Jan-Sep 2025 | |||||||||||||||||||||||||||||||||||||||||
| SEK million |
Networks | Cloud Software and Services |
Enterprise | Other | Total | Networks | Cloud Software and Services |
Enterprise | Other | Total | ||||||||||||||||||||||||||||||||
| Americas |
15,197 | 4,498 | 86 | 0 | 19,781 | 47,532 | 12,477 | 294 | 0 | 60,303 | ||||||||||||||||||||||||||||||||
| Europe, Middle East and Africa |
9,907 | 6,653 | 170 | 0 | 16,730 | 27,999 | 18,769 | 630 | 0 | 47,398 | ||||||||||||||||||||||||||||||||
| South East Asia, Oceania and India |
4,444 | 2,644 | 9 | 0 | 7,097 | 13,296 | 6,496 | 36 | 0 | 19,828 | ||||||||||||||||||||||||||||||||
| North East Asia |
3,042 | 782 | 1 | 0 | 3,825 | 8,364 | 2,432 | 10 | 0 | 10,806 | ||||||||||||||||||||||||||||||||
| Other 1) |
2,834 | 769 | 4,792 | 411 | 8,806 | 9,623 | 2,510 | 15,569 | 1,359 | 29,061 | ||||||||||||||||||||||||||||||||
| Total |
35,424 | 15,346 | 5,058 | 411 | 56,239 | 106,814 | 42,684 | 16,539 | 1,359 | 167,396 | ||||||||||||||||||||||||||||||||
| Share of total |
63% | 27% | 9% | 1% | 100% | 64% | 25% | 10% | 1% | 100% | ||||||||||||||||||||||||||||||||
1) Includes primarily IPR licensing revenues and a major part of segment Enterprise.
| Q3 2025 | ||||||||||||||||||||
| Sequential change, percent |
Networks | Cloud Software and Services |
Enterprise | Other | Total | |||||||||||||||
| Americas |
0% | 0% | 5% | - | 0% | |||||||||||||||
| Europe, Middle East and Africa |
1% | 8% | -23% | - | 3% | |||||||||||||||
| South East Asia, Oceania and India |
22% | 43% | -55% | - | 29% | |||||||||||||||
| North East Asia |
2% | -1% | -50% | - | 2% | |||||||||||||||
| Other |
-32% | -28% | -8% | -13% | -19% | |||||||||||||||
| Total |
-1% | 7% | -9% | -13% | 0% | |||||||||||||||
| Q3 2025 | Jan-Sep 2025 | |||||||||||||||||||||||||||||||||||||||||
| Year over year change, percent |
Networks | Cloud Software and Services |
Enterprise | Other | Total | Networks | Cloud Software and Services |
Enterprise | Other | Total | ||||||||||||||||||||||||||||||||
| Americas |
-19% | 2% | -45% | -100% | -15% | 2% | -1% | -17% | -100% | 1% | ||||||||||||||||||||||||||||||||
| Europe, Middle East and Africa |
0% | -1% | -26% | -100% | -1% | -5% | -2% | -7% | -100% | -4% | ||||||||||||||||||||||||||||||||
| South East Asia, Oceania and India |
-20% | 23% | 80% | -100% | -8% | -24% | 1% | 71% | - | -17% | ||||||||||||||||||||||||||||||||
| North East Asia |
7% | -6% | -75% | -100% | 4% | -6% | -8% | 0% | -100% | -7% | ||||||||||||||||||||||||||||||||
| Other |
-3% | -6% | -19% | -15% | -13% | 10% | 7% | -12% | -5% | -4% | ||||||||||||||||||||||||||||||||
| Total |
-11% | 3% | -20% | -19% | -9% | -4% | -1% | -12% | -15% | -4% | ||||||||||||||||||||||||||||||||
| 28 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
| Top 5 countries in sales | ||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Country, percentage of net sales1) |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| United States |
40 | % | 44 | % | 45 | % | 39 | % | 44 | % | 38 | % | 37 | % | ||||||||||||||||
| India |
5 | % | 4 | % | 7 | % | 4 | % | 5 | % | 6 | % | 10 | % | ||||||||||||||||
| United Kingdom |
4 | % | 4 | % | 4 | % | 4 | % | 4 | % | 3 | % | 4 | % | ||||||||||||||||
| China |
3 | % | 4 | % | 3 | % | 4 | % | 3 | % | 6 | % | 4 | % | ||||||||||||||||
| Japan |
3 | % | 3 | % | 3 | % | 5 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||
|
|
||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Country, percentage of net sales1) |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||
| United States |
43 | % | 44 | % | 45 | % | 40 | % | 40 | % | 38 | % | 37 | % | ||||||||||||||||
| India |
5 | % | 6 | % | 7 | % | 6 | % | 7 | % | 8 | % | 10 | % | ||||||||||||||||
| United Kingdom |
4 | % | 4 | % | 4 | % | 4 | % | 3 | % | 3 | % | 4 | % | ||||||||||||||||
| China |
4 | % | 4 | % | 3 | % | 4 | % | 4 | % | 5 | % | 4 | % | ||||||||||||||||
| Japan |
3 | % | 3 | % | 3 | % | 4 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||||
| 1) | Based on Jan-Sep 2025. Includes IPR licensing revenues. |
| IPR licensing revenues by segment by quarter | ||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Networks |
2,569 | 3,987 | 2,606 | 2,870 | 2,853 | 3,187 | 2,539 | |||||||||||||||||||||||
| Cloud Software and Services |
564 | 875 | 572 | 630 | 626 | 700 | 557 | |||||||||||||||||||||||
| Total |
3,133 | 4,862 | 3,178 | 3,500 | 3,479 | 3,887 | 3,096 | |||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||
| Networks |
9,162 | 6,593 | 2,606 | 11,449 | 8,579 | 5,726 | 2,539 | |||||||||||||||||||||||
| Cloud Software and Services |
2,011 | 1,447 | 572 | 2,513 | 1,883 | 1,257 | 557 | |||||||||||||||||||||||
| Total |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Financial income |
662 | 579 | 619 | 587 | 724 | 742 | 681 | |||||||||||||||||||||||
| Financial expenses |
-735 | -927 | -805 | -984 | -991 | -1,029 | -1,099 | |||||||||||||||||||||||
| Net foreign exchange gains/losses |
-139 | 382 | 112 | 6 | -234 | -74 | -53 | |||||||||||||||||||||||
| Total |
-212 | 34 | -74 | -391 | -501 | -361 | -471 | |||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||
| Financial income |
1,860 | 1,198 | 619 | 2,734 | 2,147 | 1,423 | 681 | |||||||||||||||||||||||
| Financial expenses |
-2,467 | -1,732 | -805 | -4,103 | -3,119 | -2,128 | -1,099 | |||||||||||||||||||||||
| Net foreign exchange gains/losses |
355 | 494 | 112 | -355 | -361 | -127 | -53 | |||||||||||||||||||||||
| Total |
-252 | -40 | -74 | -1,724 | -1,333 | -832 | -471 | |||||||||||||||||||||||
| 29 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
Note 4 – Provisions
| Provisions |
||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||
| Opening balance |
8,652 | 9,093 | 11,715 | 10,544 | 10,200 | 10,065 | 11,706 | |||||||||||||||||||||
| Additions |
847 | 1,830 | 1,055 | 3,329 | 2,761 | 2,472 | 783 | |||||||||||||||||||||
| Utilization |
-1,311 | -1,853 | -3,009 | -1,830 | -1,872 | -1,448 | -2,140 | |||||||||||||||||||||
| Of which restructuring |
-813 | -837 | -1,201 | -1,201 | -1,286 | -755 | -932 | |||||||||||||||||||||
| Reversal of excess amounts |
-370 | -273 | -256 | -651 | -333 | -411 | -364 | |||||||||||||||||||||
| Reclassification, translation difference and other |
5 | -145 | -412 | 323 | -212 | -478 | 80 | |||||||||||||||||||||
| Closing balance |
7,823 | 8,652 | 9,093 | 11,715 | 10,544 | 10,200 | 10,065 | |||||||||||||||||||||
| Of which restructuring |
1,710 | 2,429 | 2,720 | 3,872 | 3,897 | 3,757 | 2,953 | |||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||
| Opening balance |
11,715 | 11,715 | 11,715 | 11,706 | 11,706 | 11,706 | 11,706 | |||||||||||||||||||||
| Additions |
3,732 | 2,885 | 1,055 | 9,345 | 6,016 | 3,255 | 783 | |||||||||||||||||||||
| Utilization |
-6,173 | -4,862 | -3,009 | -7,290 | -5,460 | -3,588 | -2,140 | |||||||||||||||||||||
| Of which restructuring |
-2,851 | -2,038 | -1,201 | -4,174 | -2,973 | -1,687 | -932 | |||||||||||||||||||||
| Reversal of excess amounts |
-899 | -529 | -256 | -1,759 | -1,108 | -775 | -364 | |||||||||||||||||||||
| Reclassification, translation difference and other |
-552 | -557 | -412 | -287 | -610 | -398 | 80 | |||||||||||||||||||||
| Closing balance |
7,823 | 8,652 | 9,093 | 11,715 | 10,544 | 10,200 | 10,065 | |||||||||||||||||||||
| Of which restructuring |
1,710 | 2,429 | 2,720 | 3,872 | 3,897 | 3,757 | 2,953 | |||||||||||||||||||||
| 30 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
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 |
Sep 30
2025 |
Dec 31
2024 |
||||||||||||||||||||||||||||||
| Fair value hierarchy level | Fair value hierarchy level | |||||||||||||||||||||||||||||||
| Carrying value |
Level 1 | Level 2 | Level 3 | Carrying value |
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
| Assets at fair value through profit or loss |
||||||||||||||||||||||||||||||||
| Customer finance 1) |
1.5 | - | - | 1.5 | 4.5 | - | - | 4.5 | ||||||||||||||||||||||||
| Interest-bearing securities |
45.5 | 42.9 | 2.6 | - | 31.7 | 30.4 | 1.3 | - | ||||||||||||||||||||||||
| Cash equivalents 2) |
25.6 | - | 25.6 | - | 24.3 | 0.3 | 24.0 | - | ||||||||||||||||||||||||
| Other financial assets |
1.6 | - | - | 1.6 | 2.7 | 0.8 | - | 1.9 | ||||||||||||||||||||||||
| Other current assets |
3.2 | - | 3.2 | - | 0.2 | - | 0.2 | - | ||||||||||||||||||||||||
| Assets at fair value through OCI |
||||||||||||||||||||||||||||||||
| Trade receivables |
38.1 | - | - | 38.1 | 44.2 | - | - | 44.2 | ||||||||||||||||||||||||
| Assets at amortized costs |
||||||||||||||||||||||||||||||||
| Interest-bearing securities |
0.2 | - | - | - | 0.3 | - | - | - | ||||||||||||||||||||||||
| Other financial assets |
0.1 | - | - | - | 0.3 | - | - | - | ||||||||||||||||||||||||
| Total financial assets |
115.8 | 108.2 | ||||||||||||||||||||||||||||||
| Financial liabilities at designated FVTPL |
||||||||||||||||||||||||||||||||
| Parent company borrowings |
-33.1 | -19.2 | -13.9 | - | -35.7 | -19.7 | -16.0 | - | ||||||||||||||||||||||||
| Financial liabilities at FVTPL |
||||||||||||||||||||||||||||||||
| Other current liabilities |
-0.1 | - | -0.1 | - | -3.3 | - | -3.3 | - | ||||||||||||||||||||||||
| Liabilities at amortized cost |
||||||||||||||||||||||||||||||||
| Trade payables |
-25.4 | - | - | - | -30.2 | - | - | - | ||||||||||||||||||||||||
| Borrowings |
-3.5 | - | - | - | -2.3 | - | - | - | ||||||||||||||||||||||||
| Total financial liabilities |
-62.1 | -71.5 | ||||||||||||||||||||||||||||||
1) Year to date movements of customer finance receivables are as follows: additions of SEK 11.7 billion, disposals and repayments of SEK 14.4 billion and revaluation loss of SEK 0.3 billion.
2) Total Cash and cash equivalent is SEK 42.7 (43.9 on Dec 31, 2024) billion, of which SEK 25.6 (24.3 on Dec 31, 2024) billion relating to Cash equivalents are presented in the table above.
| Exchange rates used in the consolidation |
||||||||||||||
| Jan-Sep | Jan-Dec | |||||||||||||
| 2025 | 2024 | 2024 | ||||||||||||
| SEK/EUR - closing rate |
11.06 | 11.31 | 11.49 | |||||||||||
| SEK/USD - closing rate |
9.42 | 10.11 | 10.99 | |||||||||||
| 31 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
Note 6 – Cash flow
| Information on investments
Investments in assets subject to depreciation, amortization, impairment and write-downs |
| |||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Additions |
||||||||||||||||||||||||||||||
| Property, plant and equipment |
491 | 561 | 729 | 667 | 540 | 699 | 434 | |||||||||||||||||||||||
| Capitalized development expenses |
286 | 193 | 307 | 323 | 264 | 327 | 386 | |||||||||||||||||||||||
| IPR, brands and other intangible assets |
81 | 301 | 57 | 93 | 78 | 45 | 1 | |||||||||||||||||||||||
| Total |
858 | 1,055 | 1,093 | 1,083 | 882 | 1,071 | 821 | |||||||||||||||||||||||
| Depreciation, amortization and impairment losses |
||||||||||||||||||||||||||||||
| Property, plant and equipment |
812 | 826 | 1,029 | 1,117 | 924 | 1,161 | 941 | |||||||||||||||||||||||
| Capitalized development expenses |
449 | 451 | 444 | 409 | 410 | 349 | 312 | |||||||||||||||||||||||
| Goodwill, IPR, brands and other intangible assets |
365 | 373 | 721 | 666 | 429 | 15,945 | 793 | |||||||||||||||||||||||
|
Right-of-use assets |
503 | 527 | 556 | 623 | 529 | 560 | 566 | |||||||||||||||||||||||
| Total |
2,129 | 2,177 | 2,750 | 2,815 | 2,292 | 18,015 | 2,612 | |||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||
| Additions |
||||||||||||||||||||||||||||||
| Property, plant and equipment |
1,781 | 1,290 | 729 | 2,340 | 1,673 | 1,133 | 434 | |||||||||||||||||||||||
| Capitalized development expenses |
786 | 500 | 307 | 1,300 | 977 | 713 | 386 | |||||||||||||||||||||||
| IPR, brands and other intangible assets |
439 | 358 | 57 | 217 | 124 | 46 | 1 | |||||||||||||||||||||||
| Total |
3,006 | 2,148 | 1,093 | 3,857 | 2,774 | 1,892 | 821 | |||||||||||||||||||||||
| Depreciation, amortization and impairment losses |
||||||||||||||||||||||||||||||
| Property, plant and equipment |
2,667 | 1,855 | 1,029 | 4,143 | 3,026 | 2,102 | 941 | |||||||||||||||||||||||
| Capitalized development expenses |
1,344 | 895 | 444 | 1,480 | 1,071 | 661 | 312 | |||||||||||||||||||||||
| Goodwill, IPR, brands and other intangible assets |
1,459 | 1,094 | 721 | 17,833 | 17,167 | 16,738 | 793 | |||||||||||||||||||||||
|
Right-of-use assets |
1,586 | 1,083 | 556 | 2,278 | 1,655 | 1,126 | 566 | |||||||||||||||||||||||
| Total |
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 |
||||||||
| Sep 30 | Dec 31 | |||||||
| SEK million |
2025 | 2024 | ||||||
| Contingent liabilities |
3,249 | 3,559 | ||||||
| Assets pledged as collateral |
9,792 | 9,438 | ||||||
| 32 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
Note 8 – Share information
| Number of shares and earnings per share |
||||||||||||||||||
| Q3 | Jan-Sep | |||||||||||||||||
| 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 | 28 | 14 | ||||||||||||||
| 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 (loss) per share, basic (SEK) 2) |
3.34 | 1.14 | 5.96 | -1.43 | ||||||||||||||
| Earnings (loss) per share, diluted (SEK) 1) |
3.33 | 1.14 | 5.94 | -1.43 | ||||||||||||||
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 |
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||||||||||
| Americas |
15,346 | 15,926 | 15,857 | 16,034 | 16,554 | 16,791 | 17,051 | |||||||||||||||||||||||
| Europe, Middle East and Africa 1) |
39,489 | 40,413 | 40,677 | 41,387 | 41,993 | 43,017 | 42,989 | |||||||||||||||||||||||
| South East Asia, Oceania and India |
25,358 | 25,591 | 25,991 | 26,389 | 26,327 | 26,558 | 27,016 | |||||||||||||||||||||||
| North East Asia |
9,705 | 10,007 | 10,341 | 10,426 | 11,110 | 11,619 | 12,084 | |||||||||||||||||||||||
| Total |
89,898 | 91,937 | 92,866 | 94,236 | 95,984 | 97,985 | 99,140 | |||||||||||||||||||||||
| 1) Of which in Sweden |
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 iconectiv divestment
On August 22 the Company divested iconectiv, which was an acquired US subsidiary (83.3% ownership) forming part of Segment Enterprise and is a provider of network number portability solutions and data exchange services. The transaction resulted in a capital gain of SEK 7.6 billion, and impact investing cash flow of SEK 10.5 billion in the period.
iconectiv’s consolidated contribution to Ericsson’s 2024 net income was approximately SEK 1.0 billion.
| 33 Ericsson | Third quarter report 2025. October 14, 2025. | Accounting policies and Explanatory notes | |
Table of Contents
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Reported net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||
| Acquired business |
- | - | - | - | - | - | - | |||||||||||||||||||||||
| Net FX impact |
4,213 | 4,672 | -1,817 | 683 | 1,832 | 22 | 740 | |||||||||||||||||||||||
| Com parable net sales, excluding FX impact |
60,452 | 60,804 | 53,208 | 73,596 | 63,626 | 59,870 | 54,065 | |||||||||||||||||||||||
| Com parable quarter net sales adj. for acq/div business |
61,794 | 59,848 | 53,325 | 71,881 | 64,473 | 64,444 | 62,553 | |||||||||||||||||||||||
| Organic sales growth (% ) |
-2% | 2% | 0% | 2% | -1% | -7% | -14% | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Year to date, year over year change |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||
| Reported net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||
| Acquired business |
- | - | - | - | - | - | - | |||||||||||||||||||||||
| Net FX impact |
7,068 | 2,855 | -1,817 | 3,277 | 2,594 | 762 | 740 | |||||||||||||||||||||||
| Com parable net sales, excluding FX impact |
174,464 | 114,012 | 53,208 | 251,157 | 177,561 | 113,935 | 54,065 | |||||||||||||||||||||||
| Com parable quarter net sales adj. for acq/div business |
174,967 | 113,173 | 53,325 | 263,351 | 191,470 | 126,997 | 62,553 | |||||||||||||||||||||||
| Organic sales growth (%) |
0% | 1% | 0% | -5% | -7% | -10% | -14% | |||||||||||||||||||||||
| 34 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Gross income |
26,777 | 26,649 | 26,537 | 32,707 | 28,185 | 25,815 | 22,658 | |||||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||
| Gross margin (% ) |
47.6% | 47.5% | 48.2% | 44.9% | 45.6% | 43.1% | 42.5% | |||||||||||||||||||||||
| Gross income |
26,777 | 26,649 | 26,537 | 32,707 | 28,185 | 25,815 | 22,658 | |||||||||||||||||||||||
| Restructuring charges included in cost of sales |
271 | 310 | 158 | 1,034 | 424 | 466 | 122 | |||||||||||||||||||||||
| Adjusted gross income |
27,048 | 26,959 | 26,695 | 33,741 | 28,609 | 26,281 | 22,780 | |||||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||
| Adjusted gross margin (% ) |
48.1% | 48.0% | 48.5% | 46.3% | 46.3% | 43.9% | 42.7% | |||||||||||||||||||||||
| Operating expenses |
-19,377 | -20,358 | -20,621 | -24,391 | -22,442 | -38,084 | -20,519 | |||||||||||||||||||||||
| Restructuring charges included in R&D expenses |
-41 | 300 | 20 | 358 | 966 | 805 | -10 | |||||||||||||||||||||||
| Restructuring charges included in selling and administrative expenses |
73 | 46 | 103 | 234 | 163 | 357 | 93 | |||||||||||||||||||||||
| Operating expenses excluding restructuring charges |
-19,345 | -20,012 | -20,498 | -23,799 | -21,313 | -36,922 | -20,436 | |||||||||||||||||||||||
| EBIT (loss) |
15,151 | 6,391 | 5,931 | 7,958 | 5,774 | -13,519 | 4,100 | |||||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||
| EBIT margin (% ) |
26.9% | 11.4% | 10.8% | 10.9% | 9.3% | -22.6% | 7.7% | |||||||||||||||||||||||
| EBIT (loss) |
15,151 | 6,391 | 5,931 | 7,958 | 5,774 | -13,519 | 4,100 | |||||||||||||||||||||||
| Total restructuring charges |
303 | 656 | 281 | 1,626 | 1,553 | 1,628 | 205 | |||||||||||||||||||||||
| Adjusted EBIT (loss) |
15,454 | 7,047 | 6,212 | 9,584 | 7,327 | -11,891 | 4,305 | |||||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||
| Adjusted EBIT margin (% ) |
27.5% | 12.6% | 11.3% | 13.1% | 11.9% | -19.9% | 8.1% | |||||||||||||||||||||||
| Adjusted EBIT (loss) |
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 |
15,454 | 7,047 | 6,212 | 9,797 | 7,327 | 3,229 | 4,305 | |||||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||
| Adjusted EBIT margin excluding impairments of goodwill and intangible assets (% ) |
27.5% | 12.6% | 11.3% | 13.4% | 11.9% | 5.4% | 8.1% | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||
| Gross income |
79,963 | 53,186 | 26,537 | 109,365 | 76,658 | 48,473 | 22,658 | |||||||||||||||||||||||
| Net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||
| Gross margin (% ) |
47.8% | 47.8% | 48.2% | 44.1% | 43.8% | 42.8% | 42.5% | |||||||||||||||||||||||
| Gross income |
79,963 | 53,186 | 26,537 | 109,365 | 76,658 | 48,473 | 22,658 | |||||||||||||||||||||||
| Restructuring charges included in cost of sales |
739 | 468 | 158 | 2,046 | 1,012 | 588 | 122 | |||||||||||||||||||||||
| Adjusted gross income |
80,702 | 53,654 | 26,695 | 111,411 | 77,670 | 49,061 | 22,780 | |||||||||||||||||||||||
| Net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||
| Adjusted gross margin (% ) |
48.2% | 48.3% | 48.5% | 44.9% | 44.4% | 43.4% | 42.7% | |||||||||||||||||||||||
| Operating expenses |
-60,356 | -40,979 | -20,621 | -105,436 | -81,045 | -58,603 | -20,519 | |||||||||||||||||||||||
| Restructuring charges included in R&D expenses |
279 | 320 | 20 | 2,119 | 1,761 | 795 | -10 | |||||||||||||||||||||||
| Restructuring charges included in selling and administrative expenses |
222 | 149 | 103 | 847 | 613 | 450 | 93 | |||||||||||||||||||||||
| Operating expenses excluding restructuring charges |
-59,855 | -40,510 | -20,498 | -102,470 | -78,671 | -57,358 | -20,436 | |||||||||||||||||||||||
| EBIT (loss) |
27,473 | 12,322 | 5,931 | 4,313 | -3,645 | -9,419 | 4,100 | |||||||||||||||||||||||
| Net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||
| EBIT margin (% ) |
16.4% | 11.1% | 10.8% | 1.7% | -2.1% | -8.3% | 7.7% | |||||||||||||||||||||||
| EBIT (loss) |
27,473 | 12,322 | 5,931 | 4,313 | -3,645 | -9,419 | 4,100 | |||||||||||||||||||||||
| Total restructuring charges |
1,240 | 937 | 281 | 5,012 | 3,386 | 1,833 | 205 | |||||||||||||||||||||||
| Adjusted EBIT (loss) |
28,713 | 13,259 | 6,212 | 9,325 | -259 | -7,586 | 4,305 | |||||||||||||||||||||||
| Net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||
| Adjusted EBIT margin (% ) |
17.2% | 11.9% | 11.3% | 3.8% | -0.1% | -6.7% | 8.1% | |||||||||||||||||||||||
| Adjusted EBIT (loss) |
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 |
28,713 | 13,259 | 6,212 | 24,658 | 14,861 | 7,534 | 4,305 | |||||||||||||||||||||||
| Net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||
| Adjusted EBIT margin excluding impairments of goodwill and intangible assets (% ) |
17.2% | 11.9% | 11.3% | 9.9% | 8.5% | 6.7% | 8.1% | |||||||||||||||||||||||
| 35 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
EBITA and EBITA margin / Adjusted EBITA and EBITA margin
Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a percentage of net sales.
Adjusted EBITA also expressed as a percentage of net sales.
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Net income (loss) |
11,300 | 4,626 | 4,217 | 4,879 | 3,881 | -10,999 | 2,613 | |||||||||||||||||||||||
| Income tax |
3,639 | 1,799 | 1,640 | 2,688 | 1,392 | -2,881 | 1,016 | |||||||||||||||||||||||
| Financial income and expenses, net |
212 | -34 | 74 | 391 | 501 | 361 | 471 | |||||||||||||||||||||||
| Amortizations and write-downs of acquired intangibles |
365 | 372 | 721 | 665 | 429 | 15,945 | 793 | |||||||||||||||||||||||
| Of which segment Enterprise |
338 | 346 | 389 | 549 | 378 | 15,916 | 762 | |||||||||||||||||||||||
| EBITA |
15,516 | 6,763 | 6,652 | 8,623 | 6,203 | 2,426 | 4,893 | |||||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||
| EBITA margin (% ) |
27.6% | 12.0% | 12.1% | 11.8% | 10.0% | 4.1% | 9.2% | |||||||||||||||||||||||
| Restructuring charges |
303 | 656 | 281 | 1,626 | 1,553 | 1,628 | 205 | |||||||||||||||||||||||
| Adjusted EBITA |
15,819 | 7,419 | 6,933 | 10,249 | 7,756 | 4,054 | 5,098 | |||||||||||||||||||||||
| Adjusted EBITA margin (% ) |
28.1% | 13.2% | 12.6% | 14.1% | 12.6% | 6.8% | 9.6% | |||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||
| Net income (loss) |
20,143 | 8,843 | 4,217 | 374 | -4,505 | -8,386 | 2,613 | |||||||||||||||||||||||
| Income tax |
7,078 | 3,439 | 1,640 | 2,215 | -473 | -1,865 | 1,016 | |||||||||||||||||||||||
| Financial income and expenses, net |
252 | 40 | 74 | 1,724 | 1,333 | 832 | 471 | |||||||||||||||||||||||
| Amortizations and w rite-downs of acquired intangibles |
1,458 | 1,093 | 721 | 17,832 | 17,167 | 16,738 | 793 | |||||||||||||||||||||||
| Of which segment Enterprise |
1,073 | 735 | 389 | 17,605 | 17,056 | 16,678 | 762 | |||||||||||||||||||||||
| EBITA |
28,931 | 13,415 | 6,652 | 22,145 | 13,522 | 7,319 | 4,893 | |||||||||||||||||||||||
| Net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||
| EBITA margin (% ) |
17.3% | 12.1% | 12.1% | 8.9% | 7.7% | 6.5% | 9.2% | |||||||||||||||||||||||
| Restructuring charges |
1,240 | 937 | 281 | 5,012 | 3,386 | 1,833 | 205 | |||||||||||||||||||||||
| Adjusted EBITA |
30,171 | 14,352 | 6,933 | 27,157 | 16,908 | 9,152 | 5,098 | |||||||||||||||||||||||
| Adjusted EBITA margin (% ) |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Net sales |
240,309 | 245,864 | 249,580 | 247,880 | 246,848 | 249,527 | 254,123 | |||||||||||||||||||||||
| EBITA |
37,554 | 28,241 | 23,904 | 22,145 | 20,216 | 17,841 | 15,957 | |||||||||||||||||||||||
| Restructuring charges |
2,866 | 4,116 | 5,088 | 5,012 | 4,906 | 4,241 | 5,746 | |||||||||||||||||||||||
| Adjusted EBITA |
40,420 | 32,357 | 28,992 | 27,157 | 25,122 | 22,082 | 21,703 | |||||||||||||||||||||||
| Adjusted EBITA margin (% ) |
16.8% | 13.2% | 11.6% | 11.0% | 10.2% | 8.8% | 8.5% | |||||||||||||||||||||||
| 36 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Cash and cash equivalents |
42,695 | 33,620 | 44,590 | 43,885 | 37,323 | 28,736 | 31,848 | |||||||||||||||||||||||
| + Interest-bearing securities, current |
8,345 | 6,790 | 5,147 | 12,546 | 10,063 | 13,838 | 8,948 | |||||||||||||||||||||||
| + Interest-bearing securities, non-current |
37,370 | 32,859 | 24,436 | 19,440 | 14,806 | 11,146 | 11,177 | |||||||||||||||||||||||
| Gross cash, end of period |
88,410 | 73,269 | 74,173 | 75,871 | 62,192 | 53,720 | 51,973 | |||||||||||||||||||||||
| - Borrowings, current |
6,680 | 7,285 | 5,597 | 6,137 | 3,134 | 8,067 | 8,491 | |||||||||||||||||||||||
| - Borrowings, non-current |
29,872 | 29,944 | 29,929 | 31,904 | 33,524 | 32,520 | 32,675 | |||||||||||||||||||||||
| Net cash, end of period |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Total assets |
282,476 | 270,555 | 277,978 | 292,374 | 272,450 | 278,486 | 299,523 | |||||||||||||||||||||||
| Less: Non-interest-bearing provisions and liabilities |
||||||||||||||||||||||||||||||
| Provisions, non-current |
2,478 | 2,365 | 2,541 | 3,511 | 3,036 | 2,642 | 3,952 | |||||||||||||||||||||||
| Deferred tax liabilities |
1,349 | 1,390 | 1,365 | 1,295 | 1,255 | 1,295 | 3,999 | |||||||||||||||||||||||
| Other non-current liabilities |
899 | 870 | 888 | 996 | 889 | 865 | 839 | |||||||||||||||||||||||
| Provisions, current |
5,345 | 6,287 | 6,552 | 8,204 | 7,508 | 7,558 | 6,113 | |||||||||||||||||||||||
| Contract liabilities |
40,642 | 44,370 | 46,757 | 41,229 | 39,540 | 40,704 | 42,538 | |||||||||||||||||||||||
| Trade payables |
25,352 | 24,804 | 26,450 | 30,173 | 25,888 | 26,731 | 25,305 | |||||||||||||||||||||||
| Current tax liabilities |
6,069 | 3,609 | 2,664 | 3,322 | 3,821 | 3,710 | 3,810 | |||||||||||||||||||||||
| Other current liabilities |
34,605 | 32,521 | 41,655 | 40,677 | 36,903 | 38,485 | 35,786 | |||||||||||||||||||||||
| Capital employed |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||
| Net sales, rolling four quarters |
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 |
153,610 | 156,496 | 177,181 | 177,965 | 170,926 | 197,676 | 195,403 | |||||||||||||||||||||||
| Capital employed at end of period -3 |
162,967 | 153,610 | 156,496 | 177,181 | 177,965 | 170,926 | 197,676 | |||||||||||||||||||||||
| Capital employed at end of period -2 |
149,106 | 162,967 | 153,610 | 156,496 | 177,181 | 177,965 | 170,926 | |||||||||||||||||||||||
| Capital employed at end of period -1 |
154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | 177,965 | |||||||||||||||||||||||
| Capital employed at end of period |
165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | |||||||||||||||||||||||
| Average capital employed, rolling five quarters |
157,152 | 155,304 | 159,872 | 165,644 | 167,236 | 176,049 | 183,830 | |||||||||||||||||||||||
| Capital turnover (times) |
1.5 | 1.6 | 1.6 | 1.5 | 1.5 | 1.4 | 1.4 | |||||||||||||||||||||||
| 37 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| EBIT (loss), rolling four quarters |
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 |
153,610 | 156,496 | 177,181 | 177,965 | 170,926 | 197,676 | 195,403 | |||||||||||||||||||||||||
| Capital employed at end of period -3 |
162,967 | 153,610 | 156,496 | 177,181 | 177,965 | 170,926 | 197,676 | |||||||||||||||||||||||||
| Capital employed at end of period -2 |
149,106 | 162,967 | 153,610 | 156,496 | 177,181 | 177,965 | 170,926 | |||||||||||||||||||||||||
| Capital employed at end of period -1 |
154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | 177,965 | |||||||||||||||||||||||||
| Capital employed at end of period |
165,737 | 154,339 | 149,106 | 162,967 | 153,610 | 156,496 | 177,181 | |||||||||||||||||||||||||
| Average capital employed, rolling five quarters |
157,152 | 155,304 | 159,872 | 165,644 | 167,236 | 176,049 | 183,830 | |||||||||||||||||||||||||
| Return on capital employed (% ) |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Total equity |
102,494 | 85,699 | 84,858 | 92,983 | 85,355 | 82,467 | 107,639 | |||||||||||||||||||||||||
| Total assets |
282,476 | 270,555 | 277,978 | 292,374 | 272,450 | 278,486 | 299,523 | |||||||||||||||||||||||||
| Equity ratio (% ) |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Net income (loss) attributable to owners of the Parent Company |
11,149 | 4,567 | 4,149 | 4,779 | 3,814 | -11,132 | 2,559 | |||||||||||||||||||||||||
| Annualized |
44,596 | 18,268 | 16,596 | 19,116 | 15,256 | -44,528 | 10,236 | |||||||||||||||||||||||||
| Average stockholders’ equity |
||||||||||||||||||||||||||||||||
| Stockholders’ equity, beginning of period |
86,748 | 86,039 | 94,284 | 86,630 | 83,840 | 109,137 | 98,673 | |||||||||||||||||||||||||
| Stockholders’ equity, end of period |
102,658 | 86,748 | 86,039 | 94,284 | 86,630 | 83,840 | 109,137 | |||||||||||||||||||||||||
| Average stockholders’ equity |
94,703 | 86,394 | 90,162 | 90,457 | 85,235 | 96,489 | 103,905 | |||||||||||||||||||||||||
| Return on equity (% ) |
47.1% | 21.1% | 18.4% | 21.1% | 17.9% | -46.1% | 9.9% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Net income (loss) attributable to owners of the Parent Company |
19,865 | 8,716 | 4,149 | 20 | -4,759 | -8,573 | 2,559 | |||||||||||||||||||||||||
| Annualized |
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 | 98,673 | 98,673 | 98,673 | 98,673 | |||||||||||||||||||||||||
| Stockholders’ equity, end of period |
102,658 | 86,748 | 86,039 | 94,284 | 86,630 | 83,840 | 109,137 | |||||||||||||||||||||||||
| Average stockholders’ equity |
98,471 | 90,516 | 90,162 | 96,479 | 92,652 | 91,257 | 103,905 | |||||||||||||||||||||||||
| Return on equity (% ) |
26.9% | 19.3% | 18.4% | 0.0% | -6.8% | -18.8% | 9.9% | |||||||||||||||||||||||||
| 38 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
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 |
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | Jun 30 | Mar 31 | |||||||||||||||||||||||||
| Inventories |
27,519 | 27,068 | 27,649 | 27,125 | 29,004 | 30,897 | 34,564 | |||||||||||||||||||||||||
| Contract assets |
7,494 | 6,618 | 5,735 | 6,924 | 7,568 | 6,851 | 6,715 | |||||||||||||||||||||||||
| Trade receivables |
38,136 | 39,107 | 41,428 | 44,151 | 38,018 | 43,578 | 46,246 | |||||||||||||||||||||||||
| Customer finance, current |
1,290 | 1,879 | 2,396 | 4,332 | 3,843 | 4,590 | 3,717 | |||||||||||||||||||||||||
| Customer finance, non-current |
242 | 78 | 27 | 190 | 221 | 843 | 1,406 | |||||||||||||||||||||||||
| Advance payments to suppliers 1) |
39 | 41 | 46 | 47 | 108 | 146 | 167 | |||||||||||||||||||||||||
| Prepaid expenses 2) |
2,443 | 3,025 | 3,749 | 2,659 | 2,737 | 3,244 | 3,501 | |||||||||||||||||||||||||
| Less: Contract liabilities |
40,642 | 44,370 | 46,757 | 41,229 | 39,540 | 40,704 | 42,538 | |||||||||||||||||||||||||
| Less: Trade payables |
25,352 | 24,804 | 26,450 | 30,173 | 25,888 | 26,731 | 25,305 | |||||||||||||||||||||||||
| Operating working capital |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Cash flow from operating activities |
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 |
-491 | -561 | -729 | -667 | -540 | -699 | -434 | |||||||||||||||||||||||||
| Sales of property, plant and equipment |
57 | 40 | 39 | 14 | 36 | 42 | 24 | |||||||||||||||||||||||||
| Product development |
-286 | -193 | -307 | -323 | -264 | -327 | -386 | |||||||||||||||||||||||||
| Other investments 1) |
-81 | -301 | -64 | -87 | -78 | -39 | -7 | |||||||||||||||||||||||||
| Repayment of lease liabilities |
-507 | -554 | -593 | -626 | -607 | -658 | -601 | |||||||||||||||||||||||||
| Free cash flow before M&A |
6,631 | 2,581 | 2,704 | 15,824 | 12,944 | 7,595 | 3,671 | |||||||||||||||||||||||||
| Acquisitions/ divestments of subs and other operations, net |
10,064 | 141 | -4 | -95 | -62 | -48 | -106 | |||||||||||||||||||||||||
| Free cash flow after M&A |
16,695 | 2,722 | 2,700 | 15,729 | 12,882 | 7,547 | 3,565 | |||||||||||||||||||||||||
| Net sales |
56,239 | 56,132 | 55,025 | 72,913 | 61,794 | 59,848 | 53,325 | |||||||||||||||||||||||||
| Free cash flow before M&A (% of net sales) |
11.8% | 4.6% | 4.9% | 21.7% | 20.9% | 12.7% | 6.9% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Cash flow from operating activities |
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 |
-1,781 | -1,290 | -729 | -2,340 | -1,673 | -1,133 | -434 | |||||||||||||||||||||||||
| Sales of property, plant and equipment |
136 | 79 | 39 | 116 | 102 | 66 | 24 | |||||||||||||||||||||||||
| Product development |
-786 | -500 | -307 | -1,300 | -977 | -713 | -386 | |||||||||||||||||||||||||
| Other investments 1) |
-446 | -365 | -64 | -211 | -124 | -46 | -7 | |||||||||||||||||||||||||
| Repayment of lease liabilities |
-1,654 | -1,147 | -593 | -2,492 | -1,866 | -1,259 | -601 | |||||||||||||||||||||||||
| Free cash flow before M&A |
11,916 | 5,285 | 2,704 | 40,034 | 24,210 | 11,266 | 3,671 | |||||||||||||||||||||||||
| Acquisitions/ divestments of subs and other operations, net |
10,201 | 137 | -4 | -311 | -216 | -154 | -106 | |||||||||||||||||||||||||
| Free cash flow after M&A |
22,117 | 5,422 | 2,700 | 39,723 | 23,994 | 11,112 | 3,565 | |||||||||||||||||||||||||
| Net sales |
167,396 | 111,157 | 55,025 | 247,880 | 174,967 | 113,173 | 53,325 | |||||||||||||||||||||||||
| Free cash flow before M&A (% of net sales) |
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.
| 39 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
Sales growth by segment adjusted for comparable units and currency
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarter, year over year change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
-5% | 3% | 3% | 5% | -1% | -11% | -19% | |||||||||||||||||||||||||
| Cloud Software and Services |
9% | 1% | -3% | 0% | -1% | 0% | -2% | |||||||||||||||||||||||||
| Enterprise |
-7% | -6% | -7% | -7% | -3% | 0% | 1% | |||||||||||||||||||||||||
| Other |
-15% | -1% | -23% | -10% | -26% | -5% | -14% | |||||||||||||||||||||||||
| Total |
-2% | 2% | 0% | 2% | -1% | -7% | -14% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, year over year change, percent |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
0% | 3% | 3% | -6% | -10% | -15% | -19% | |||||||||||||||||||||||||
| Cloud Software and Services |
2% | -1% | -3% | -1% | -1% | -1% | -2% | |||||||||||||||||||||||||
| Enterprise |
-7% | -6% | -7% | -2% | -1% | 1% | 1% | |||||||||||||||||||||||||
| Other |
-14% | -13% | -23% | -15% | -16% | -10% | -14% | |||||||||||||||||||||||||
| Total |
0% | 1% | 0% | -5% | -7% | -10% | -14% | |||||||||||||||||||||||||
Sales growth by market area adjusted for comparable units and currency
| 2025 | 2024 1) | |||||||||||||||||||||||||||||||
| Isolated quarter, year over year change, percent |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Americas |
-8% | 10% | 20% | 40% | 42% | 10% | -16% | |||||||||||||||||||||||||
| Europe, Middle East and Africa |
3% | -1% | -7% | -4% | -6% | -4% | -1% | |||||||||||||||||||||||||
| South East Asia, Oceania and India |
1% | -22% | -17% | -28% | -43% | -44% | -37% | |||||||||||||||||||||||||
| North East Asia |
10% | -15% | -8% | -22% | -29% | -3% | -16% | |||||||||||||||||||||||||
| Other |
-2% | 15% | -6% | 3% | 5% | 7% | 8% | |||||||||||||||||||||||||
| Total |
-2% | 2% | 0% | 2% | -1% | -7% | -14% | |||||||||||||||||||||||||
| 2025 | 2024 1) | |||||||||||||||||||||||||||||||
| Year to date, year over year change, percent |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Americas |
6% | 14% | 20% | 18% | 10% | -4% | -16% | |||||||||||||||||||||||||
| Europe, Middle East and Africa |
-2% | -4% | -7% | -4% | -4% | -3% | -1% | |||||||||||||||||||||||||
| South East Asia, Oceania and India |
-13% | -19% | -17% | -38% | -41% | -41% | -37% | |||||||||||||||||||||||||
| North East Asia |
-5% | -12% | -8% | -19% | -16% | -9% | -16% | |||||||||||||||||||||||||
| Other |
3% | 5% | -6% | 6% | 6% | 7% | 8% | |||||||||||||||||||||||||
| Total |
0% | 1% | 0% | -5% | -7% | -10% | -14% | |||||||||||||||||||||||||
| 1) | 2024 has been restated to reflect the changes in the market area structure, see note 1 “Accounting policies and Other changes” for more information. |
Rolling four quarters of net sales by segment
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Rolling four quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
153,611 | 158,203 | 160,135 | 158,207 | 156,408 | 157,929 | 162,690 | |||||||||||||||||||||||||
| Cloud Software and Services |
62,141 | 61,748 | 62,565 | 62,635 | 62,736 | 63,347 | 63,275 | |||||||||||||||||||||||||
| Enterprise |
22,629 | 23,890 | 24,826 | 24,863 | 25,471 | 25,825 | 25,720 | |||||||||||||||||||||||||
| Other |
1,928 | 2,023 | 2,054 | 2,175 | 2,233 | 2,426 | 2,438 | |||||||||||||||||||||||||
| Total |
240,309 | 245,864 | 249,580 | 247,880 | 246,848 | 249,527 | 254,123 | |||||||||||||||||||||||||
| 40 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
Gross margin by segment by quarter
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
50.0% | 49.3% | 50.8% | 47.7% | 48.3% | 45.5% | 44.0% | |||||||||||||||||||||||||
| Cloud Software and Services |
42.1% | 41.5% | 39.1% | 37.2% | 37.0% | 35.6% | 37.1% | |||||||||||||||||||||||||
| Enterprise |
51.6% | 54.9% | 56.3% | 54.3% | 52.3% | 51.0% | 48.0% | |||||||||||||||||||||||||
| Other |
0.0% | 0.4% | 3.8% | -29.5% | 1.8% | -8.1% | 18.2% | |||||||||||||||||||||||||
| Total |
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-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
50.0% | 50.1% | 50.8% | 46.6% | 46.1% | 44.8% | 44.0% | |||||||||||||||||||||||||
| Cloud Software and Services |
41.0% | 40.4% | 39.1% | 36.8% | 36.5% | 36.3% | 37.1% | |||||||||||||||||||||||||
| Enterprise |
54.4% | 55.6% | 56.3% | 51.4% | 50.5% | 49.6% | 48.0% | |||||||||||||||||||||||||
| Other |
1.5% | 2.1% | 3.8% | -4.2% | 4.7% | 6.1% | 18.2% | |||||||||||||||||||||||||
| Total |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
20.0% | 17.8% | 19.8% | 19.8% | 18.7% | 12.6% | 12.3% | |||||||||||||||||||||||||
| Cloud Software and Services |
11.2% | 5.8% | 0.5% | 5.6% | -3.0% | -4.8% | -2.8% | |||||||||||||||||||||||||
| Enterprise |
131.5% | -15.7% | -17.1% | -30.8% | -19.0% | -268.7% | -26.5% | |||||||||||||||||||||||||
| Other |
-71.5% | 9.5% | -35.0% | -93.5% | -14.6% | -23.2% | 317.5% | |||||||||||||||||||||||||
| Total |
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-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
19.2% | 18.8% | 19.8% | 16.2% | 14.7% | 12.5% | 12.3% | |||||||||||||||||||||||||
| Cloud Software and Services |
6.2% | 3.3% | 0.5% | -0.7% | -3.6% | -3.9% | -2.8% | |||||||||||||||||||||||||
| Enterprise |
28.8% | -16.4% | -17.1% | -88.8% | -107.6% | -152.6% | -26.5% | |||||||||||||||||||||||||
| Other |
-30.5% | -12.8% | -35.0% | 53.6% | 105.7% | 161.1% | 317.5% | |||||||||||||||||||||||||
| Total |
16.4% | 11.1% | 10.8% | 1.7% | -2.1% | -8.3% | 7.7% | |||||||||||||||||||||||||
| 41 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
EBITA and EBITA margin by segment by quarter
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
7,096 | 6,397 | 7,367 | 9,375 | 7,536 | 4,771 | 4,179 | |||||||||||||||||||||||||
| Cloud Software and Services |
1,726 | 845 | 76 | 1,107 | -436 | -721 | -355 | |||||||||||||||||||||||||
| Enterprise |
6,987 | -524 | -625 | -1,327 | -823 | -1,508 | -820 | |||||||||||||||||||||||||
| Other |
-293 | 45 | -166 | -532 | -74 | -116 | 1,889 | |||||||||||||||||||||||||
| Total |
15,516 | 6,763 | 6,652 | 8,623 | 6,203 | 2,426 | 4,893 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
20.0% | 17.9% | 20.7% | 20.0% | 18.8% | 12.7% | 12.4% | |||||||||||||||||||||||||
| Cloud Software and Services |
11.2% | 5.9% | 0.6% | 5.7% | -2.9% | -4.7% | -2.7% | |||||||||||||||||||||||||
| Enterprise |
138.1% | -9.4% | -10.5% | -21.8% | -13.0% | -23.3% | -13.7% | |||||||||||||||||||||||||
| Other |
-71.3% | 9.5% | -35.0% | -93.5% | -14.6% | -23.0% | 317.5% | |||||||||||||||||||||||||
| Total |
27.6% | 12.0% | 12.1% | 11.8% | 10.0% | 4.1% | 9.2% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
20,860 | 13,764 | 7,367 | 25,861 | 16,486 | 8,950 | 4,179 | |||||||||||||||||||||||||
| Cloud Software and Services |
2,647 | 921 | 76 | -405 | -1,512 | -1,076 | -355 | |||||||||||||||||||||||||
| Enterprise |
5,838 | -1,149 | -625 | -4,478 | -3,151 | -2,328 | -820 | |||||||||||||||||||||||||
| Other |
-414 | -121 | -166 | 1,167 | 1,699 | 1,773 | 1,889 | |||||||||||||||||||||||||
| Total |
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-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
19.5% | 19.3% | 20.7% | 16.3% | 14.8% | 12.5% | 12.4% | |||||||||||||||||||||||||
| Cloud Software and Services |
6.2% | 3.4% | 0.6% | -0.6% | -3.5% | -3.8% | -2.7% | |||||||||||||||||||||||||
| Enterprise |
35.3% | -10.0% | -10.5% | -18.0% | -16.8% | -18.7% | -13.7% | |||||||||||||||||||||||||
| Other |
-30.5% | -12.8% | -35.0% | 53.7% | 105.8% | 161.2% | 317.5% | |||||||||||||||||||||||||
| Total |
17.3% | 12.1% | 12.1% | 8.9% | 7.7% | 6.5% | 9.2% | |||||||||||||||||||||||||
| 42 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
Restructuring charges by function
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Cost of sales |
-271 | -310 | -158 | -1,034 | -424 | -466 | -122 | |||||||||||||||||||||||||
| Research and development expenses |
41 | -300 | -20 | -358 | -966 | -805 | 10 | |||||||||||||||||||||||||
| Selling and administrative expenses |
-73 | -46 | -103 | -234 | -163 | -357 | -93 | |||||||||||||||||||||||||
| Total |
-303 | -656 | -281 | -1,626 | -1,553 | -1,628 | -205 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Cost of sales |
-739 | -468 | -158 | -2,046 | -1,012 | -588 | -122 | |||||||||||||||||||||||||
| Research and development expenses |
-279 | -320 | -20 | -2,119 | -1,761 | -795 | 10 | |||||||||||||||||||||||||
| Selling and administrative expenses |
-222 | -149 | -103 | -847 | -613 | -450 | -93 | |||||||||||||||||||||||||
| Total |
-1,240 | -937 | -281 | -5,012 | -3,386 | -1,833 | -205 | |||||||||||||||||||||||||
Restructuring charges by segment
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
-79 | -109 | -108 | -738 | -585 | -481 | -95 | |||||||||||||||||||||||||
| of which cost of sales |
-45 | -67 | -55 | -645 | -163 | -214 | -68 | |||||||||||||||||||||||||
| of which operating expenses |
-34 | -42 | -53 | -93 | -422 | -267 | -27 | |||||||||||||||||||||||||
| Cloud Software and Services |
-193 | -538 | -74 | -695 | -863 | -816 | -60 | |||||||||||||||||||||||||
| of which cost of sales |
-222 | -243 | -102 | -348 | -243 | -246 | -49 | |||||||||||||||||||||||||
| of which operating expenses |
29 | -295 | 28 | -347 | -620 | -570 | -11 | |||||||||||||||||||||||||
| Enterprise |
-27 | -9 | -97 | -150 | -38 | -285 | -38 | |||||||||||||||||||||||||
| of which cost of sales |
0 | 0 | 1 | -2 | -1 | -3 | -5 | |||||||||||||||||||||||||
| of which operating expenses |
-27 | -9 | -98 | -148 | -37 | -282 | -33 | |||||||||||||||||||||||||
| Other |
-4 | 0 | -2 | -43 | -67 | -46 | -12 | |||||||||||||||||||||||||
| of which cost of sales |
-4 | 0 | -2 | -39 | -17 | -3 | 0 | |||||||||||||||||||||||||
| of which operating expenses |
0 | 0 | 0 | -4 | -50 | -43 | -12 | |||||||||||||||||||||||||
| Total |
-303 | -656 | -281 | -1,626 | -1,553 | -1,628 | -205 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
-296 | -217 | -108 | -1,899 | -1,161 | -576 | -95 | |||||||||||||||||||||||||
| of which cost of sales |
-167 | -122 | -55 | -1,090 | -445 | -282 | -68 | |||||||||||||||||||||||||
| of which operating expenses |
-129 | -95 | -53 | -809 | -716 | -294 | -27 | |||||||||||||||||||||||||
| Cloud Software and Services |
-805 | -612 | -74 | -2,434 | -1,739 | -876 | -60 | |||||||||||||||||||||||||
| of which cost of sales |
-567 | -345 | -102 | -886 | -538 | -295 | -49 | |||||||||||||||||||||||||
| of which operating expenses |
-238 | -267 | 28 | -1,548 | -1,201 | -581 | -11 | |||||||||||||||||||||||||
| Enterprise |
-133 | -106 | -97 | -511 | -361 | -323 | -38 | |||||||||||||||||||||||||
| of which cost of sales |
1 | 1 | 1 | -11 | -9 | -8 | -5 | |||||||||||||||||||||||||
| of which operating expenses |
-134 | -107 | -98 | -500 | -352 | -315 | -33 | |||||||||||||||||||||||||
| Other |
-6 | -2 | -2 | -168 | -125 | -58 | -12 | |||||||||||||||||||||||||
| of which cost of sales |
-6 | -2 | -2 | -59 | -20 | -3 | 0 | |||||||||||||||||||||||||
| of which operating expenses |
0 | 0 | 0 | -109 | -105 | -55 | -12 | |||||||||||||||||||||||||
| Total |
-1,240 | -937 | -281 | -5,012 | -3,386 | -1,833 | -205 | |||||||||||||||||||||||||
| 43 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
| Adjusted gross income and gross margin by segment | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
17,750 | 17,705 | 18,167 | 22,971 | 19,495 | 17,353 | 14,919 | |||||||||||||||||||||||||
| Cloud Software and Services |
6,685 | 6,207 | 5,171 | 7,591 | 5,780 | 5,653 | 4,883 | |||||||||||||||||||||||||
| Enterprise |
2,609 | 3,045 | 3,337 | 3,308 | 3,308 | 3,313 | 2,870 | |||||||||||||||||||||||||
| Other |
4 | 2 | 20 | -129 | 26 | -38 | 108 | |||||||||||||||||||||||||
| Total |
27,048 | 26,959 | 26,695 | 33,741 | 28,609 | 26,281 | 22,780 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
50.1% | 49.5% | 51.0% | 49.1% | 48.7% | 46.1% | 44.3% | |||||||||||||||||||||||||
| Cloud Software and Services |
43.6% | 43.2% | 39.9% | 39.0% | 38.7% | 37.2% | 37.4% | |||||||||||||||||||||||||
| Enterprise |
51.6% | 54.9% | 56.2% | 54.3% | 52.4% | 51.1% | 48.1% | |||||||||||||||||||||||||
| Other |
1.0% | 0.4% | 4.2% | -22.7% | 5.1% | -7.5% | 18.2% | |||||||||||||||||||||||||
| Total |
48.1% | 48.0% | 48.5% | 46.3% | 46.3% | 43.9% | 42.7% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
53,622 | 35,872 | 18,167 | 74,738 | 51,767 | 32,272 | 14,919 | |||||||||||||||||||||||||
| Cloud Software and Services |
18,063 | 11,378 | 5,171 | 23,907 | 16,316 | 10,536 | 4,883 | |||||||||||||||||||||||||
| Enterprise |
8,991 | 6,382 | 3,337 | 12,799 | 9,491 | 6,183 | 2,870 | |||||||||||||||||||||||||
| Other |
26 | 22 | 20 | -33 | 96 | 70 | 108 | |||||||||||||||||||||||||
| Total |
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-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
50.2% | 50.2% | 51.0% | 47.2% | 46.5% | 45.2% | 44.3% | |||||||||||||||||||||||||
| Cloud Software and Services |
42.3% | 41.6% | 39.9% | 38.2% | 37.8% | 37.3% | 37.4% | |||||||||||||||||||||||||
| Enterprise |
54.4% | 55.6% | 56.2% | 51.5% | 50.6% | 49.6% | 48.1% | |||||||||||||||||||||||||
| Other |
1.9% | 2.3% | 4.2% | -1.5% | 6.0% | 6.4% | 18.2% | |||||||||||||||||||||||||
| Total |
48.2% | 48.3% | 48.5% | 44.9% | 44.4% | 43.4% | 42.7% | |||||||||||||||||||||||||
| 44 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
| Adjusted EBIT (loss) and EBIT margin by segment | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
7,154 | 6,485 | 7,148 | 10,005 | 8,077 | 5,231 | 4,251 | |||||||||||||||||||||||||
| Cloud Software and Services |
1,914 | 1,378 | 145 | 1,794 | 420 | 88 | -303 | |||||||||||||||||||||||||
| Enterprise |
6,676 | -861 | -917 | -1,726 | -1,163 | -17,139 | -1,544 | |||||||||||||||||||||||||
| Other |
-290 | 45 | -164 | -489 | -7 | -71 | 1,901 | |||||||||||||||||||||||||
| Total |
15,454 | 7,047 | 6,212 | 9,584 | 7,327 | -11,891 | 4,305 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
20.2% | 18.1% | 20.1% | 21.4% | 20.2% | 13.9% | 12.6% | |||||||||||||||||||||||||
| Cloud Software and Services |
12.5% | 9.6% | 1.1% | 9.2% | 2.8% | 0.6% | -2.3% | |||||||||||||||||||||||||
| Enterprise |
132.0% | -15.5% | -15.5% | -28.3% | -18.4% | -264.3% | -25.9% | |||||||||||||||||||||||||
| Other |
-70.6% | 9.5% | -34.6% | -85.9% | -1.4% | -14.1% | 319.5% | |||||||||||||||||||||||||
| Total |
27.5% | 12.6% | 11.3% | 13.1% | 11.9% | -19.9% | 8.1% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
20,787 | 13,633 | 7,148 | 27,564 | 17,559 | 9,482 | 4,251 | |||||||||||||||||||||||||
| Cloud Software and Services |
3,437 | 1,523 | 145 | 1,999 | 205 | -215 | -303 | |||||||||||||||||||||||||
| Enterprise |
4,898 | -1,778 | -917 | -21,572 | -19,846 | -18,683 | -1,544 | |||||||||||||||||||||||||
| Other |
-409 | -119 | -164 | 1,334 | 1,823 | 1,830 | 1,901 | |||||||||||||||||||||||||
| Total |
28,713 | 13,259 | 6,212 | 9,325 | -259 | -7,586 | 4,305 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, as percentage of net sales |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
19.5% | 19.1% | 20.1% | 17.4% | 15.8% | 13.3% | 12.6% | |||||||||||||||||||||||||
| Cloud Software and Services |
8.1% | 5.6% | 1.1% | 3.2% | 0.5% | -0.8% | -2.3% | |||||||||||||||||||||||||
| Enterprise |
29.6% | -15.5% | -15.5% | -86.8% | -105.7% | -150.0% | -25.9% | |||||||||||||||||||||||||
| Other |
-30.1% | -12.6% | -34.6% | 61.3% | 113.5% | 166.4% | 319.5% | |||||||||||||||||||||||||
| Total |
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 |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
20.4% | 20.4% | 19.3% | 17.5% | 16.0% | 14.0% | 13.4% | |||||||||||||||||||||||||
| Cloud Software and Services |
8.5% | 6.1% | 4.0% | 3.2% | 3.6% | 3.6% | 3.0% | |||||||||||||||||||||||||
| Enterprise |
21.2% | -12.6% | -15.0% | -16.0% | -14.1% | -13.2% | -11.7% | |||||||||||||||||||||||||
| Other |
-46.5% | -30.4% | -35.5% | 61.4% | 62.0% | 43.6% | 43.9% | |||||||||||||||||||||||||
| Total |
16.8% | 13.2% | 11.6% | 11.0% | 10.2% | 8.8% | 8.5% | |||||||||||||||||||||||||
| 45 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
Adjusted EBITA and EBITA margin by segment
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, SEK million |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
7,175 | 6,506 | 7,475 | 10,113 | 8,121 | 5,252 | 4,274 | |||||||||||||||||||||||||
| Cloud Software and Services |
1,919 | 1,383 | 150 | 1,802 | 427 | 95 | -295 | |||||||||||||||||||||||||
| Enterprise |
7,014 | -515 | -528 | -1,177 | -785 | -1,223 | -782 | |||||||||||||||||||||||||
| Other |
-289 | 45 | -164 | -489 | -7 | -70 | 1,901 | |||||||||||||||||||||||||
| Total |
15,819 | 7,419 | 6,933 | 10,249 | 7,756 | 4,054 | 5,098 | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Isolated quarters, as percentage of net sales |
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||||||||||||||||||||||||
| Networks |
20.3% | 18.2% | 21.0% | 21.6% | 20.3% | 13.9% | 12.7% | |||||||||||||||||||||||||
| Cloud Software and Services |
12.5% | 9.6% | 1.2% | 9.3% | 2.9% | 0.6% | -2.3% | |||||||||||||||||||||||||
| Enterprise |
138.7% | -9.3% | -8.9% | -19.3% | -12.4% | -18.9% | -13.1% | |||||||||||||||||||||||||
| Other |
-70.3% | 9.5% | -34.6% | -85.9% | -1.4% | -13.9% | 319.5% | |||||||||||||||||||||||||
| Total |
28.1% | 13.2% | 12.6% | 14.1% | 12.6% | 6.8% | 9.6% | |||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Year to date, SEK million |
Jan-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
21,156 | 13,981 | 7,475 | 27,760 | 17,647 | 9,526 | 4,274 | |||||||||||||||||||||||||
| Cloud Software and Services |
3,452 | 1,533 | 150 | 2,029 | 227 | -200 | -295 | |||||||||||||||||||||||||
| Enterprise |
5,971 | -1,043 | -528 | -3,967 | -2,790 | -2,005 | -782 | |||||||||||||||||||||||||
| Other |
-408 | -119 | -164 | 1,335 | 1,824 | 1,831 | 1,901 | |||||||||||||||||||||||||
| Total |
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-Sep | Jan-Jun | Jan-Mar | Jan-Dec | Jan-Sep | Jan-Jun | Jan-Mar | |||||||||||||||||||||||||
| Networks |
19.8% | 19.6% | 21.0% | 17.5% | 15.8% | 13.3% | 12.7% | |||||||||||||||||||||||||
| Cloud Software and Services |
8.1% | 5.6% | 1.2% | 3.2% | 0.5% | -0.7% | -2.3% | |||||||||||||||||||||||||
| Enterprise |
36.1% | -9.1% | -8.9% | -16.0% | -14.9% | -16.1% | -13.1% | |||||||||||||||||||||||||
| Other |
-30.0% | -12.6% | -34.6% | 61.4% | 113.6% | 166.5% | 319.5% | |||||||||||||||||||||||||
| Total |
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 | |||||||||||||||||||||||||||||||
| Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||
| Inventory turnover days (ITO) |
80 | 80 | 81 | 84 | 92 | 97 | 100 | |||||||||||||||||||||||||
| Days sales outstanding (DSO) |
11 | 14 | 17 | 23 | 26 | 29 | 30 | |||||||||||||||||||||||||
| Less: Days payables outstanding (DPO) |
68 | 66 | 64 | 64 | 63 | 64 | 65 | |||||||||||||||||||||||||
| Operating working capital days |
23 | 28 | 34 | 43 | 55 | 62 | 65 | |||||||||||||||||||||||||
| 46 Ericsson | Third quarter report 2025. October 14, 2025. | Alternative performance measures | |
Table of Contents
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: October 14, 2025
FAQ
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