Ericsson reported a fourth-quarter diluted EPS of SEK 2.57, well above the SEK 1.44 posted in Q4 2024 and exceeding consensus estimates of SEK 2.30. Reported net sales were SEK 69.3 billion, down 5 percent year-over-year, but adjusted gross margin expanded to 48.0 percent from 46.3 percent, driven by strong performance in Cloud Software and Services. Adjusted EBITA climbed 24 percent to SEK 12.7 billion, lifting the margin to 18.3 percent, while net income nearly doubled to SEK 8.6 billion from SEK 4.9 billion, reflecting disciplined cost management and operational leverage across all regions except North East Asia.

For the full year, reported sales totaled SEK 236.7 billion, a 5 percent decline from the prior year, but adjusted EBITA surged 58 percent to SEK 42.9 billion, driving the adjusted EBITA margin to 18.1 percent. Net income jumped to SEK 28.7 billion from SEK 0.4 billion, boosted by the divestment gain on Iconectiv. Free cash flow before M&A investments amounted to SEK 26.8 billion, and the company closed the year with SEK 61.2 billion in net cash, up 62 percent year-over-year, underscoring a robust liquidity position.

The board has proposed a dividend of SEK 3.00 per share for 2025 and a SEK 15.0 billion share buyback program, representing a total return of 15 billion crowns to shareholders. Ericsson continues to invest heavily in R&D, focusing on AI-native, secure and autonomous mobile networks to maintain technology leadership. With a debt-to-equity ratio below 0.5 and a price-to-earnings ratio near 12, the company’s healthy balance sheet supports ongoing investment in mission-critical networks and defense solutions for 2026.