Telefonaktiebolaget LM Ericsson
XETRA:ERCG

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Telefonaktiebolaget LM Ericsson Logo
Telefonaktiebolaget LM Ericsson
XETRA:ERCG
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Price: 8.28 EUR -0.84% Market Closed
Market Cap: 27.6B EUR

Telefonaktiebolaget LM Ericsson
Investor Relations

Telefonaktiebolaget LM Ericsson, often simply known as Ericsson, is a linchpin in the telecommunications industry, weaving global connectivity through the intricate threads of technology and innovation. Founded in 1876 in Sweden, Ericsson's journey from a small mechanical workshop to a multinational corporation underscores a legacy of relentless advancement. Central to its operations is the development and supply of infrastructure technology, much like building the very highways through which modern digital communication travels. Ericsson’s products and services encompass the spectrum of telecommunications solutions, notably mobile networks, fixed broadband, and a wide array of software-driven services. Its prowess in 5G technology positions Ericsson as a pioneer, crafting the evolving landscape of wireless connectivity and networking. The company thrives in a highly competitive arena, continuously innovating to keep a step ahead, ensuring carriers have the tools necessary to accommodate the ever-increasing demand for data and connectivity.

Earnings for Ericsson flow primarily from its robust portfolio of services, managed services, digital services, and emerging markets in 5G and IoT. Mobile networks, which remain at the heart of its revenue stream, account significantly for its income through long-term contracts and partnerships with major telecom service providers worldwide. The business model rests on building these relationships to offer end-to-end solutions encompassing everything from network infrastructure to administrative and optimization tools, capitalizing on the recurring revenue from service agreements. Moreover, Ericsson’s strategic initiatives in digital transformation and emerging technologies—cloud-based services, IoT, and AI—propel it into new revenue streams, blending traditional telecom prowess with modern digital business acumen. By aligning closely with the strategic aspirations of its clients and continually adjusting its offerings to meet future demands, Ericsson not only sustains relevance but carves out new opportunities for growth in the digital age.

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Last Earnings Call
Fiscal Period
Q1 2025
Call Date
Apr 15, 2025
AI Summary
Q1 2025

Revenue: Ericsson reported Q1 net sales of SEK 55 billion, with organic sales stable year-on-year and reported sales up 3% due to currency benefits.

Margins: Gross margin improved significantly to 48.5% from 42.7% last year, and EBITA margin reached 12.6%, with broad-based improvements across all segments.

Regional Performance: Strong growth in the Americas, with sales up 20% year-over-year, driven by North America, while sales declined in other regions, especially India.

Outlook: Management expects Q2 to follow typical seasonal patterns, with networks gross margin forecasted between 48% and 50%, though volatility in currencies and tariffs add uncertainty.

Cost Actions: Operating expenses remained flat year-on-year despite inflation, supported by ongoing cost reduction and productivity initiatives.

Tariffs & Supply Chain: Tariffs are expected to have a negative 1 percentage point impact on Q2 margins, but Ericsson highlighted its diversified supply chain as a mitigating factor.

Competitive Environment: Competition, particularly from Chinese vendors, remains intense outside North America, impacting some regional sales performance.

Key Financials
Net Sales
SEK 55 billion
Organic Sales
Stable year-on-year
Gross Margin
48.5%
Operating Expenses
SEK 20.5 billion
EBITA
SEK 6.9 billion
EBITA Margin
12.6%
Cash Flow
SEK 2.7 billion
Networks Sales
SEK 35.6 billion
Networks Gross Margin
51%
Networks EBITA
SEK 7.5 billion
Networks EBITA Margin
21%
Cloud Software & Services Gross Margin
39.9%
Enterprise Wireless Solutions Growth
20%
Free Cash Flow (before M&A)
SEK 2.7 billion
Other Earnings Calls

Management

Mr. E. Borje Ekholm MBA, MSc
President, CEO, Head of Segment Enterprise & Director
No Bio Available
Mr. Fredrik Jejdling
Executive VP, Head of Business Area Network & Head of Segment Networks
No Bio Available
Mr. Lars Sandstrom M.Sc.
Senior VP & CFO
No Bio Available
Mr. Chris Houghton
Senior VP, COO and Head of Business Area Technology & New Businesses
No Bio Available
Ms. Eva-Britt Allenius
Chief Accounting Officer
No Bio Available
Mr. Erik Ekudden
Senior VP, CTO & Head of Group Function Technology
No Bio Available
Daniel Morris
Head of Investor Relations
No Bio Available
Mr. Scott Dresser
Former Senior VP, Chief Legal Officer, Head of Group Function Legal Affairs and Secretary
No Bio Available
Ms. Rebecca Rohr
Chief Compliance Officer
No Bio Available
Peter Olofsson
Head of Corporate Communications
No Bio Available

Contacts

Address
STOCKHOLM
Stockholm
Torshamnsgatan 21
Contacts
+46107190000.0
www.ericsson.com