#Sweden #Stockholm #Ericsson #5G Technology #programmable networks

Ericsson's First Quarter Report 2025

On April 15, 2025, Ericsson released its financial results for the first quarter, demonstrating a promising performance even in a rapidly changing market. The company's strategic focus on technology leadership and programmable networks has yielded solid results, showcasing their competitive edge.

Strategic Highlights

Ericsson has made significant advancements in extending its technology leadership by enhancing its product portfolio, making it both high-performing and energy-efficient. Notably, the company has established its first programmable networks partnership in the Asia Pacific region with Telstra, a move aimed at revolutionizing network capabilities. Moreover, they announced a network API fraud detection deployment that is set to be utilized by all three major operators in the USA, along with further partnerships under the Aduna initiative.

Financial Overview

In terms of financial performance, Ericsson recorded substantial growth in gross income and margins for the first quarter:

• - Organic Sales: Remained stable, with notable growth in the Americas market area while encountering declines in other regions. Reported sales reached SEK 55.0 billion, up from SEK 53.3 billion a year earlier.
• - Gross Income: Adjusted gross income climbed to SEK 26.7 billion, significantly driven by both sales growth and an impressive expansion in gross margins, marking a noticeable increase from SEK 22.8 billion reported in Q1 2024. The reported gross income stood at SEK 26.5 billion.
• - Gross Margin: The adjusted gross margin was reported at 48.5%, a marked improvement from 42.7% year-over-year, attributed to enhanced performance across all segments due to strong operational execution.
• - EBITA: Adjusted EBITA surged to SEK 6.9 billion, with a margin of 12.6%, reflecting the benefits of the higher gross income. This compares favorably to the EBITA of SEK 5.1 billion with a margin of 9.6% from last year.
• - Net Income: Eriksson also witnessed a net income increase to SEK 4.2 billion, up from SEK 2.6 billion a year earlier. The diluted EPS rose from SEK 0.77 to SEK 1.24.
• - Free Cash Flow: Before mergers and acquisitions, the free cash flow registered at SEK 2.7 billion, down from SEK 3.7 billion in Q1 2024.

Börje Ekholm, President and CEO of Ericsson, commented on the results saying, "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 adjusted gross margin of 48.5% and a 12.6% adjusted EBITA margin."

Looking Ahead

As Ericsson moves forward, there is a confident outlook for its position in Mobile Networks, with the expectation that the Enterprise segment will stabilize throughout 2025. The company recognizes the challenges posed by the global trade landscape and macroeconomic volatility but remains committed to controlling operational variables and ensuring customer satisfaction. With a diversified production model and the capacity to adapt to shifting conditions, Ericsson aims to maintain its momentum.

The company plans to introduce a portfolio of 130 radios this year that will support programmable networks, further solidifying its position in the tech landscape. In conclusion, Ericsson's first quarter results for 2025 indicate a solid foundation for ongoing growth and innovation, with an assertive strategy to lead within a competitive market.