Ericsson pens $5.6bn in Q1 2025 sales

Ericsson has reported a strong performance for the first quarter of 2025, as the Swedish telecom giant posted Q1 net sales of SEK 55.0 billion ($5.6 billion), up from SEK 53.3 billion ($5.4 billion) in the same period in 2024

This development was underpinned by robust gross income and margin growth, as well as continued momentum in its technology leadership and programmable network strategy, driven by strong growth in the Americas, which helped offset declines in other markets.

Adjusted gross income rose to SEK 26.7 billion from SEK 22.8 billion, while the adjusted gross margin climbed to 48.5% from 42.7% year-on-year, marking improvements across all business segments.

Adjusted EBITA increased to SEK 6.9 billion, up from SEK 5.1 billion, with a 12.6% margin. Net income surged by 61% to SEK 4.2 billion, translating to diluted earnings per share of SEK 1.24.

President and CEO Börje Ekholm highlighted the company’s resilience and continued competitiveness amid macroeconomic challenges.

“We sustained solid momentum in Q1, despite a challenging and fast-changing macro backdrop,” Ekholm said. “Our strong execution contributed to a 48.5% adjusted gross margin and a 12.6% adjusted EBITA margin. We extended our technology leadership and are on track to offer a portfolio of 130 radios supporting programmable networks this year.”

During the quarter, Ericsson achieved key strategic milestones, including the launch of its first high-performing programmable networks partnership in Asia Pacific with Telstra, featuring the deployment of 5G Advanced technology.

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The company also expanded its portfolio of energy-efficient products to reinforce its market leadership, implemented network API fraud detection across all three major U.S. operators, and strengthened its enterprise position through deeper integration with its Aduna platform partners.

Despite a 26% year-on-year drop in free cash flow before M&A to SEK 2.7 billion, Ericsson ended the quarter with net cash of SEK 38.6 billion, a 258% increase from Q1 2024.

Ekholm expressed optimism for the year ahead, particularly in mobile networks, while noting that enterprise performance is expected to stabilize during 2025.

“We are not immune to global volatility, but we are resilient—with diversified production close to customers and the flexibility to adapt to changing conditions,” he said.

Ericsson remains focused on advancing its technological edge, delivering customer value, and maintaining operational discipline in a complex global environment.