27 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Jan 23, 2026
Slide 1: Ericsson Fourth quarter 2025
Ericsson Fourth quarter 2025 January 23, 2026 © Telefonaktiebolaget LM Ericsson 2026 | Fourth quarter report 2025 | January 23, 2026
Slide 2: Fourth quarter 2025
Fourth 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 2026 | Fourth quarter report 2025 | January 23, 2026
Slide 4: Key takeaways
Key takeaways Fourth Quarter Full Year ● Strong Q4 and full-year Organic1 sales YoY: Organic1 sales YoY: – Disciplined execution and solid progress on strategic priorities 6% 2% ● A more resilient Ericsson – Organic sales growth, despite flattish RAN market Adjusted2 gross margin: Adjusted2 gross ma
Slide 5: Capital Allocation
Capital Allocation © Telefonaktiebolaget LM Ericsson 2026 | Fourth quarter report 2025 | January 23, 2026
Slide 6: Financial Overview
Financial Overview Lars Sandström Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2026 | Fourth quarter report 2025 | January 23, 2026
Slide 7: Sales development Q4 2025
Sales development Q4 2025 Market area net sales Organic growth Networks Cloud Software Enterprise (Q4 2025, SEK b.) (Q4 2025 YoY) and Services 64% 29% 7% % of Q4-25 net sales Americas 22.9 -1% 33% Europe, Middle East and 23.4 13% 34% Africa South East Asia, 9.0 19% 13% Oceania and India North East A
Slide 8: Financial update Q4 2025
Financial update Q4 2025 Financial performance (adjusted) SEK b. Q4-25 Q4-24 YoY Q3-25 Organic sales increased 6% YoY Net sales 69.3 72.9 -5% 56.2 • Organic sales growth in all three major segments Organic sales growth 6% Gross income 33.2 33.7 -1% 27.0 Adjusted gross margin 48.0% • Improved margins
Slide 9: Financial update FY 2025
Financial update FY 2025 Financial performance (adjusted) SEK b. 2025 2024 YoY 20252 20243 Organic sales increased 2% YoY Net sales 236.7 247.9 -5% • Growth in North America and EMEA Organic sales growth 2% • Growth in Networks and Cloud Software and Services Gross income 113.9 111.4 2% Adjusted gro
Slide 10: Segment Networks Q4 and FY 2025
Segment Networks Q4 and FY 2025 Net sales (SEK b.) Adjusted EBITA margin Rolling 4-quarter adjusted gross margin Rolling 4-quarter adjusted EBITA margin 22% 23% 50% 50% 21% 47% 49% 50% 20% 20% 46% 18% 42% 43% 14% 13% 19% 20% 20% 21% 16% 18% 13% 14% 33.7 37.7 40.0 46.8 35.6 35.7 35.4 44.2 Q1-24 Q2-24
Slide 11: Segment Cloud Software and Services Q4 and FY 2025
Segment Cloud Software and Services Q4 and FY 2025 Net sales (SEK b.) Adjusted EBITA margin Rolling 4-quarter adjusted gross margin Rolling 4-quarter adjusted EBITA margin 19% 13% 41% 43% 38% 39% 40% 9% 10% 36% 37% 38% 3% 1% 1% -2% 11% 6% 8% 3% 4% 4% 3% 4% 13.0 15.2 15.0 19.5 13.0 14.4 15.3 20.0 Q1-
Slide 12: Segment Enterprise Q4 2025
Segment Enterprise Q4 2025 Net sales (SEK b.) Organic sales growth YoY 1% 0% 2% -3% -7% -7% -6% -7% 6.0 6.5 6.3 6.1 5.9 5.5 5.1 4.6 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q425 ● 2% organic sales growth ● Adjusted gross margin of 52.1% (54.3%), with decline driven by iconectiv divestment ● Adjuste
Slide 13: Cash flow and financial position Q4 2025
Cash flow and financial position Q4 2025 FCF before M&A Net cash (SEK b.) FCF (SEK b.) Rolling 4-quarters FCF/sales 16% 15% 16% 14% 12% 11% 9% 4% 3.7 7.6 12.9 15.8 2.7 2.6 6.6 14.9 10.8 13.1 25.5 37.8 38.6 36.0 51.9 61.2 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q
Slide 14: Ericsson capital allocation priorities
Ericsson capital allocation priorities Guiding principles 2025 Outcome Maintain technology 1 SEK 49 b. (c. $5 b.) leadership (R&D) Stable to progressive Solid net 2 SEK 3.00 per share1 ordinary dividend cash position Investment Selective inorganic 3 SEK 10.5 b. asset disposals2 grade credit investme
Slide 15: Outlook
Outlook1 Increased uncertainty remains on the outlook, both in terms of potential for further tariff changes and in the broader macroeconomic environment. Sales Sales growth in Q1 2026 is expected to be broadly similar to 3-year average Networks seasonality Sales Sales growth in Q1 2026 is expected
Slide 16: Closing Remarks
Closing Remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2026 | Fourth quarter report 2025 | January 23, 2026
Slide 17: Summary
Summary ● Looking ahead – We plan for a flattish RAN market, with growth in new areas – Continue our efforts to drive operational efficiency – Continue to invest in technology leadership to strengthen competitive position ● Provide the industry’s best wireless networks for AI – Enable differentiated
Slide 18: Q&A
Q&A
Slide 19: Slide 19
Slide 20: Appendices
Appendices Appendix 1 – Key financial trends Appendix 2 – Adjusted gross margin and gross income development Q4 2025 Appendix 3 – Adjusted EBITA margin and EBITA development Q4 2025 Appendix 4 – Ericsson Mobility Report, November 2025 Appendix 5 – Ericsson licensing progress Q4 2025 Appendix 6 – Mor
Slide 21: Appendix 1 – Key financial trends
Appendix 1 – Key financial trends 45% 46% 47% 48% 48% 43% 40% 42% Sales 72.9 69.3 ● FY 2025 impacted by SEK -13.9 b. currency headwind 61.8 59.8 55.0 56.1 56.2 Adjusted gross income and adjusted EBITA 53.3 ● Adjusted gross income and adjusted EBITA improved, despite lower net sales 1 14% 1 15% 12% 1
Slide 22: Appendix 2 – Adjusted gross margin and gross income development Q4 2025
Appendix 2 – Adjusted gross margin and gross income development Q4 2025 Adjusted gross margin (%) (YoY change) 46.3% 49.6% 44.3% 52.1% 13.0% 48.0% + Adjusted gross margin increase (+0.5 p.p.) (+5.3 p.p.) (-2.2 p.p.) (+35.7 p.p.) + Cost-reduction actions + Operational efficiency Adjusted gross income
Slide 23: Appendix 3 – Adjusted EBITA margin and EBITA development Q4 2025
Appendix 3 – Adjusted EBITA margin and EBITA development Q4 2025 Adjusted EBITA margin (%) (YoY change) 14.1% 22.8% 18.6% -24.4% 8.0% 18.3% + Adjusted EBITA increase (+1.2 p.p.) (+9.3 p.p.) (-5.1 p.p.) (+93.9 p.p.) + Lower operating expenses + Cost-reduction actions Adjusted EBITA, SEK b. +2.5 0.11
Slide 24: Appendix 4 – Ericsson Mobility Report, Nov 2025
Appendix 4 – Ericsson Mobility Report, Nov 2025 Download the report here FWA connections (millions) 5G 4G and other technologies 350 million 70% FWA connections 70% of service providers expected to grow from that have 5G FWA offer 185 million in 2025 to 350 speed-based tariff plans million in 2031 4
Slide 25: Appendix 5 – Ericsson licensing progress Q4 2025
Appendix 5 – Ericsson licensing progress Q4 2025 IPR licensing revenue (SEK b.) ●Most major smartphone vendors now licensed for 5G –On December 31, 2025, a smartphone license agreement with a Chinese vendor expired ●Concluded licenses with 4 Chinese auto OEMs (via Avanci licensing platform) Smartpho
Slide 26: Appendix 6 – More information
Appendix 6 – More information Upcoming Event Annual General Meeting 2026 Telefonaktiebolaget LM Ericsson's Annual General Meeting (AGM) 2026 will be held on Tuesday, March 31, 2026. Latest Information Fourth quarter and full-year report 2025 Annual Report 2024 Ericsson Investor Relations homepage Ja
Slide 27: 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