Telefonaktiebolaget LM Ericsson Class B ( (ERIC) ) has released its Q3 earnings. Here is a breakdown of the information Telefonaktiebolaget LM Ericsson Class B presented to its investors.
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Telefonaktiebolaget LM Ericsson, a leading provider of telecommunications equipment and services, operates primarily in the mobile and fixed networks sector, with a strong focus on 5G technology and Open RAN solutions.
In its third quarter report for 2025, Ericsson highlighted its strategic achievements in operational excellence and financial flexibility, alongside significant customer agreements in key markets such as India, Japan, and the UK. The company also emphasized its leadership in 5G technology, as reaffirmed by industry analysts Gartner and Omdia.
Financially, Ericsson reported a 2% decline in organic sales, with total sales reaching SEK 56.2 billion, impacted by currency fluctuations. Despite this, the company achieved a significant increase in adjusted EBITA to SEK 15.8 billion, driven by a capital gain from the divestment of iconectiv. The adjusted gross margin improved to 48.1%, reflecting cost efficiency measures and strong performance in Networks and Cloud Software and Services.
Ericsson’s net income rose to SEK 11.3 billion, bolstered by the capital gain, while free cash flow before mergers and acquisitions was SEK 6.6 billion. The company’s net cash position strengthened to SEK 51.9 billion, providing a robust foundation for potential increased shareholder distributions.
Looking ahead, Ericsson anticipates stabilization in Enterprise sales and a stable RAN market in the fourth quarter. The company remains focused on maintaining solid cash flow and exploring opportunities for shareholder returns, with further details expected in the upcoming annual general meeting.