Ericsson delivered an 18.3% adjusted EBITDA margin in Q4, marking the ninth consecutive quarter of year-on-year margin expansion. CEO Börje Ekholm highlighted that the company is closing in on its 15%–18% long-term EBITDA margin target. For the full year, adjusted EBITDA margin reached 18.1%, or 14.9% excluding the SEK 6.3 billion capital gain from the iconectiv divestment. Ericsson ended 2025 with a net cash position exceeding SEK 61 billion, supported by disciplined cost actions that included a headcount reduction of approximately 5,000 employees over the past year.

CFO Lars Sandström reported Q4 net sales of SEK 69.3 billion, representing 6% organic growth despite a SEK 6.8 billion negative currency effect. Adjusted gross margin improved to 48.0%, driven by cost-reduction measures and operational excellence in both Networks and Cloud Software & Services. Adjusted EBITDA rose to SEK 12.7 billion, up SEK 2.4 billion year-on-year. For the full year, net sales totaled SEK 236.7 billion, with 2% organic growth and a SEK 13.9 billion adverse currency impact. Full-year adjusted EBITDA reached SEK 42.9 billion, while net income was SEK 28.7 billion, inclusive of the iconectiv gain.

In Networks, Q4 sales were SEK 44.2 billion, down 6% reported but up 4% organically, led by growth in Europe, the Middle East & Africa and Southeast Asia, while the Americas were stable and Northeast Asia saw timing-related declines. Networks’ adjusted gross margin rose to 49.6% and adjusted EBITDA held at SEK 10.1 billion (22.8% margin). Cloud Software & Services posted SEK 20.0 billion in Q4 sales, up 3% reported and 12% organic, with adjusted gross margin of 44.3% and EBITDA of SEK 3.7 billion (18.6% margin). Enterprise sales stabilized with 2% organic growth despite a 25% reported decline due to the iconectiv sale; adjusted gross margin was 52.1% and EBITDA loss narrowed to SEK 1.1 billion.

Ericsson proposed a dividend increase to SEK 3.00 per share and a SEK 15 billion share buyback program, totaling roughly SEK 25 billion in shareholder distributions—the largest in the company’s history. Management reaffirmed a stable-to-progressive dividend policy, selective inorganic investments and excess cash returns. For Q1 2026, Networks adjusted gross margin is guided to 49%–51%, with sales growth in line with three-year seasonal patterns, while Cloud Software & Services will face lumpiness and currency headwinds. Ericsson plans continued operational efficiency to fund R&D in 5G standalone, mission critical networks and defense applications without material increases in overall CapEx.