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Jun 30
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Ericsson Q2 2025 Earnings Report

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

Key Takeaways

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

Total Revenue
SEK 56.5B
EPS
SEK 1.34
Gross margin
47.5%
EBIT margin
11.4%
EBITA margin
12%
Gross Profit
SEK 26.9B
Cash and Equivalents
SEK 33.9B
Free Cash Flow
SEK 2.62B

Ericsson

Ericsson

Ericsson Revenue by Segment

Ericsson Revenue by Geographic Location

Forward Guidance

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

Positive Outlook

  • 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

Challenges Ahead

  • 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

Revenue & Expenses

Visualization of income flow from segment revenue to net income