24 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Jul 15, 2025
Slide 1: Ericsson Second quarter 2025
Ericsson Second quarter 2025 July 15, 2025 © Telefonaktiebolaget LM Ericsson 2025 | Second quarter report 2025 | July 15, 2025
Slide 2: Second quarter 2025
Second quarter 2025 This presentation contains forward-looking statements. Such statements are based on our current expectations and are subject to risks and uncertainties that could materially affect our business and results. Please read our earnings reports and our most recent annual report for a
Slide 3: Business Overview
Business Overview Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2025 | Second quarter report 2025 | July 15, 2025
Slide 4: Q2 2025 – key takeaways
Q2 2025 – key takeaways ● Solid strategic and operational execution Organic1 sales YoY: ● Strong margin development, with improvements in all segments – Three-year high adjusted EBITA margin 2% – Cloud Software and Services reaching strong adjusted EBITA margin of 9.6% ● Executing on strategy to inc
Slide 5: Q2 sales development
Q2 sales development Market area net sales Organic growth Networks Cloud Software Enterprise (Q2 2025, SEK b.) (Q2 2025 YoY) and Services 64% 26% 10% % of Q2-25 net sales Americas 19.8 10% 35% Europe, Middle East and 16.2 -1% 29% Africa South East Asia, 5.5 -22% 10% Oceania and India North East Asia
Slide 6: Financial Overview
Financial Overview Lars Sandström Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2025 | Second quarter report 2025 | July 15, 2025
Slide 7: Financial update Q2 2025
Financial update Q2 2025 Financial performance (adjusted) SEK b. Q2-25 Q2-242 YoY Q1-25 Organic sales grew 2% YoY Net sales 56.1 59.8 -6% 55.0 • Sales growth in Americas • Slight growth in Europe, other markets declined Organic sales growth 2% • IPR revenues increased to SEK 4.9 b. Gross income 27.0
Slide 8: Key financial trends
Key financial trends 45% 46% 47% 42% 43% 40% 40% 40% Adjusted gross margin and adjusted EBITA 72.9 71.9 ● Continued increase in adjusted gross margin and 64.5 61.8 adjusted EBITA margin 59.8 55.0 56.1 53.3 – Product and market mix – Supply chain efficiency 12% 13% 10% 11% – Cost actions 8% 8% 9% 9%
Slide 9: Mobile Networks Q2 2025
Mobile Networks Q2 2025 Networks Cloud Software and Services 22% 21% 10% 20% 9% 10% 18% 17% 14% 13% 13% 3% 3% 1% 1% -2% 41.5 45.0 33.7 37.7 40.0 46.8 35.6 35.7 15.6 19.6 13.0 15.2 15.0 19.5 13.0 14.4 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Net
Slide 10: Enterprise Q2 2025
Enterprise Q2 2025 Enterprise -9% -9% -12% -12% -13% -9% -19% -19% 6.7 6.7 6.0 6.5 6.3 6.1 5.9 5.5 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Net sales (SEK b.) Adjusted EBITA margin ● 5% organic sales growth in Enterprise Wireless Solutions, driven by higher product and subscription sales ● -9
Slide 11: Cash flow and financial position
Cash flow and financial position FCF before M&A Net cash (SEK b.) 16% 16% 15% 14% 9% 4% 1% 12.5 3.7 7.6 12.9 15.8 2.7 2.6 1.6 7.8 10.8 13.1 25.5 37.8 38.6 36.0 -0.5 0% Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 FCF (SEK b.) Rolling four quarters F
Slide 12: Outlook
Outlook1 Increased uncertainty remains on the outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment. Sales Sales growth in Q3 2025 is expected to be below 3-year average seasonality, Networks reflecting higher Q2 IPR revenue from previousl
Slide 13: Closing Remarks
Closing Remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2025 | Second quarter report 2025 | July 15, 2025
Slide 14: Summary
Summary ● Looking ahead – Continue to strengthen competitive position – Strong customer engagement for differentiated connectivity – New use cases to monetize network investments taking shape ● Expect RAN market to remain broadly stable ● Structurally improving the business through rigorous cost man
Slide 15: Q&A
Q&A © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
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Slide 17: Appendices
Appendices Appendix 1 – Adjusted gross margin and gross income development Appendix 2 – Adjusted EBITA margin and EBITA development Appendix 3 – Ericsson Mobility Report, June 2025 Appendix 4 – Ericsson licensing progress (Q2 2025) Appendix 5 – More information © Telefonaktiebolaget LM Ericsson 2025
Slide 18: Appendix – Adjusted gross margin and gross income development
Appendix 1 – Adjusted gross margin and gross income development Adjusted gross margin (%) (YoY change) 43.9% 49.5% 43.2% 54.9% 0.4% 48.0% + Adjusted gross income and (+3.4 p.p.) (+6.0 p.p.) (+3.8 p.p.) (+7.9 p.p.) margin increase + IPR licensing Adj. gross income, SEK b. + Cost-reduction actions +0.
Slide 19: Appendix – Adjusted EBITA margin and EBITA development
Appendix 2 – Adjusted EBITA margin and EBITA development Adjusted EBITA margin (%) (YoY change) + Adjusted EBITA and EBITA 6.8% 18.2% 9.6% -9.3% 9.5% 13.2% margin increase (+4.3p.p.) (+9.0 p.p.) (+9.6 p.p.) (+23.4p.p.) + Sales mix + IPR licensing Adj. EBITA, SEK b. + Lower operating expenses +3.4 0.
Slide 20: Appendix – Ericsson Mobility Report, June 2025
Appendix 3 – Ericsson Mobility Report, June 2025 Download the report here Global fixed broadband connections (millions) by technology, 2024–2030 >35% 50% Growth: ~550 New FWA is projected to 5G mid-band coverage in connections: account for over 35% of Europe reached 50% at ~400 (New connections new
Slide 21: Appendix – Ericsson licensing progress (Q2 2025)
Appendix 4 – Ericsson licensing progress (Q2 2025) ●Most major smartphone vendors now licensed Smartphones for 5G Cellular IoT ●Further growth opportunities remain Media Services (OTT) Automotive Consumer Electronics – 5G automotive – Cellular IoT – Media services – Consumer electronics This slide c
Slide 22: Appendix – More information
Appendix 5 – More information Latest Event Annual General Meeting 2025 Telefonaktiebolaget LM Ericsson's Annual General Meeting (AGM) 2025 was held on Tuesday, March 25, 2025, at 13:00 CET Latest Information Second quarter report 2025 Annual Report 2024 Ericsson Investor Relations homepage July 15,
Slide 23: Forward-looking statements
Forward-looking statements This report includes forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “expect,” “foresee,” “anticipate,” “assume,” “intend,” “likely,” “projects,” “may,” “could,” “plan,” “estimate,” “f
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