SSE$ERIC

Telefonaktiebolaget LM Ericsson · Q2 2025 earnings

Q2 2025 earnings · · Investor relations

Briefing

Ericsson reported improved profitability and returned to strong net income in Q2 2025.

Ericsson delivered a solid Q2 2025 with a significant rebound in profitability, driven by cost efficiencies and increased IPR licensing revenues despite a decline in overall sales.

  • Net income turned positive at SEK 4.6B after a loss last year
  • Adjusted EBITA margin reached a three-year high at 13.2%
  • IPR licensing revenues boosted gross margin to 47.5%
  • Free cash flow decreased due to weaker working capital release compared to last year

Headline financials

Total Revenue

$5.9B

No prior period
EPS (adj)

$0.14

No prior period
Gross Margin

47.5%

No prior period
EBIT Margin

11.4%

No prior period
EBITA Margin

12.0%

No prior period
Adjusted EBITA

$7.4B

No prior period
Adjusted EBITA Margin

13.2%

No prior period
IPR Licensing Revenue

$4.9B

No prior period
Free Cash Flow before M&A

$2.6B

No prior period
Net Cash

$36B

No prior period
Net Income

$484M

No prior period
Operating Income

$672M

No prior period
Gross Profit

$2.8B

No prior period

Revenue & EPS history

Ericsson · Revenue · Quarterly

$5.9B

Q2 2025
Beat estimate in 1 of 1 quarters(100%)
ActualEstimate

Forward guidance

Ericsson expects stable growth but warns of macroeconomic uncertainty; Networks sales may soften slightly due to high Q2 IPR revenue.

Tailwinds

  • Americas growth expected to continue
  • Europe stabilized with modernization projects
  • Strong IPR licensing opportunities remain
  • AI investments to drive operational efficiency
  • Network API ecosystem continues to expand

Headwinds

  • Uncertainty in global macroeconomic conditions
  • Potential further tariff changes
  • Weak investment levels in India may persist
  • 5G standalone penetration still limited
  • Free cash flow may remain pressured due to working capital

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 3 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-3.3%

Avg return

Earnings day

-0.4%

Avg return

5 days after

+0.2%

Avg return

30 days after

0%

0 / 3 earnings

Positive

-0.3%

Q4 2025

Best reaction

-7.9%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-0.3%+3.9%+3.7%
Q2 2025-7.9%-4.8%-2.9%
Q4 2024-1.6%-0.2%+0.0%

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