Ericsson has announced its financial results for first quarter (Q1) of 2025. The company’s net sales stood at SEK 55.025 billion as compared to SEK 53.325 billion in Q1 2024, a year-on-year (YoY) increase of 3 per cent. Organic sales were stable, with strong growth in market area Americas offset by declines in other market areas.
Meanwhile, adjusted gross income increased to SEK 26.7 (22.8) billion. driven by sales growth and strong gross margin expansion. Reported gross income was SEK 26.5 (22.7) billion. Adjusted gross margin was 48.5 per cent (42.7 per cent) supported by improvements in all segments with strong operational execution. Further, reported gross margin stood at 48.2 per cent (42.5 per cent).
Furthermore, the company’s adjusted earnings before interest, tax and amortisation (EBITA) was SEK 6.9 (5.1) billion. with a 12.6 per cent (9.6 per cent) margin, benefiting from higher gross income. EBITA was SEK 6.6 (4.9) billion. Q1 2024 included a one-time gain of SEK 1.9 billion.
Moreover, the company’s net income was SEK 4.2 (2.6) billion, while earnings per share (EPS) diluted was SEK 1.24 (0.77). Free cash flow before merger and acquisition (M&A) was SEK 2.7 (3.7) billion.
Commenting on the results, Börje Ekholm, president and chief executive officer (CEO), said, “We sustained solid momentum in Q1, despite a challenging and fast changing macro backdrop, and our results highlight our competitiveness. Our solid execution contributed to a strong 48.5 per cent adjusted gross margin and 12.6 per cent adjusted EBITA margin. We extended our technology leadership position further and are on track to offer a portfolio of 130 radios this year that support programmable networks. In Q1, we announced the first Asia Pacific programmable network, including deployment of 5G Advanced, with Telstra. Looking ahead, we remain confident of our strong position in mobile networks and expect enterprise to stabilise during 2025. In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers. We are not immune, but we are resilient, with well diversified production close to the customer and the flexibility to adapt to changing conditions over time.”
