24 slides from Telefonaktiebolaget Lm Ericsson Class A's earnings presentation, Oct 14, 2025
Slide 1: Ericsson Third quarter 2025
Ericsson Third quarter 2025 October 14, 2025 © Telefonaktiebolaget LM Ericsson 2025 |Third quarter report 2025 | October 14, 2025
Slide 2: Third quarter 2025 forward-looking statements
Third 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 b
Slide 3: Business Overview
Business Overview Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2025 |Third quarter report 2025 | October 14, 2025
Slide 4: Key takeaways Q3 2025
Key takeaways Q3 2025 ● Strong strategic and operational execution Organic1 sales YoY: ● Organic1 sales growth in three out of four market areas – Sales decline in Americas due to high deliveries in Q3 2024 -2% ● Strong margin development – Three-year high adjusted EBITA margin3 Adjusted2 gross marg
Slide 5: Sales development Q3 2025
Sales development Q3 2025 Market area net sales Organic growth Networks Cloud Software Enterprise (Q3 2025, SEK b.) (Q3 2025 YoY) and Services 63% 27% 9% % of Q3-25 net sales Americas 19.8 -8% 35% Europe, Middle East and 16.7 3% 30% Africa South East Asia, 7.1 1% 13% Oceania and India North East Asi
Slide 6: Financial Overview
Financial Overview Lars Sandström Chief Financial Officer © Telefonaktiebolaget LM Ericsson 2025 |Third quarter report 2025 | October 14, 2025
Slide 7: Financial update Q3 2025
Financial update Q3 2025 Financial performance (adjusted) SEK b. Q3-25 Q3-252 Q3-24 YoY Q2-25 Organic sales declined -2% YoY Net sales 56.2 61.8 -9% 56.1 • Most regions grew, but North America declined Organic sales growth -2% • Networks declined due to strong Q3 2024 deliveries • Good growth in Clo
Slide 8: Key financial trends
Key financial trends1 Adjusted gross margin and adjusted EBITA ● Continued increase in adjusted gross margin and adjusted EBITA margin despite recent currency impacts – Cost actions 1 – Operational efficiency – IPR licensing revenue growth trend 1 1 Excluding SEK 7.6 b. capital gain from the divestm
Slide 9: Segment Networks Q3 2025
Segment Networks Q3 2025 ● -5% organic sales decline ● Rolling 4-quarter adjusted gross margin of 49.9% ● Growth in two out of four market areas ● Adjusted gross margin stabilized at a new level ● Adjusted gross margin increased to 50.1% (48.7%) ● Rolling 4-quarter adjusted EBITA margin of 20.4% ● A
Slide 10: Segment Cloud Software and Services Q3 2025
Segment Cloud Software and Services Q3 2025 ● 9% organic sales growth ● Rolling 4-quarter adjusted gross margin of 41.3% ● Increased core sales in all market areas ● Adjusted gross margin at a new high level ● Adjusted gross margin benefited from delivery performance ● Rolling 4-quarter adjusted EBI
Slide 11: Segment Enterprise Q3 2025
Segment Enterprise Q3 2025 ● -7% organic sales decline ● Adjusted gross margin of 51.6% (52.4%), reflecting partial impact of divestments ● Adjusted gross margin increased in Global Communications Platform and Enterprise Wireless Solutions © Telefonaktiebolaget LM Ericsson 2025 |Third quarter report
Slide 12: Cash flow and financial position Q3 2025
Cash flow and financial position Q3 2025 FCF before M&A Net cash (SEK b.) © Telefonaktiebolaget LM Ericsson 2025 |Third quarter report 2025 | October 14, 2025
Slide 13: 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 Q4 2025 is expected to be broadly similar to 3-year average Networks seasonality Sales Sales growth in Q4 2025 is ex
Slide 14: Closing Remarks
Closing Remarks Börje Ekholm President and CEO © Telefonaktiebolaget LM Ericsson 2025 |Third quarter report 2025 | October 14, 2025
Slide 15: Summary
Summary ● Looking ahead – Continue to invest in technology leadership to strengthen competitive position – Future-proofed Open RAN-ready portfolio – New use cases to monetize network investments taking shape ● AI applications becoming a key driver for network investments ● Structurally improving the
Slide 16: Q&A
Q&A © Telefonaktiebolaget LM Ericsson 2025 | First quarter report 2025 | April 15, 2025
Slide 17: om a
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Slide 18: Appendices
Appendices Appendix 1 – Adjusted gross margin and gross income development Q3 2025 Appendix 2 – Adjusted EBITA margin and EBITA development Q3 2025 Appendix 3 – Ericsson Mobility Report, June 2025 Appendix 4 – Ericsson licensing progress Q3 2025 Appendix 5 – More information © Telefonaktiebolaget LM
Slide 19: Appendix 1 – Adjusted gross margin and gross income development Q3 2025
Appendix 1 – Adjusted gross margin and gross income development Q3 2025 Adjusted gross margin (%) (YoY change) 46.3% 50.1% 43.6% 51.6% 1.0% 48.1% + Adjusted gross margin increase (+1.4 p.p.) (+4.9 p.p.) (-0.8 p.p.) (-4.2 p.p.) + Cost-reduction actions + Operational efficiency Adjusted gross income,
Slide 20: Appendix 2 – Adjusted EBITA margin and EBITA development Q3 2025
Appendix 2 – Adjusted EBITA margin and EBITA development Q3 2025 Adjusted EBITA margin (%) (YoY change) 12.6% 20.3% 12.5% 138.7%1 -70.3% 28.1% + Gain from iconectiv divestment (+0.0 p.p.) (+9.6 p.p.) (+151.1 p.p.) (-68.9 p.p.) + Delivery performance + Lower operating expenses Adjusted EBITA, SEK b.
Slide 21: Appendix 3 – 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 22: Appendix 4 – Ericsson licensing progress Q3 2025
Appendix 4 – Ericsson licensing progress Q3 2025 ●Most major smartphone vendors now licensed for 5G Smartphones ●IPR licensing revenue growth opportunities Automotive Cellular IoT Media Services (OTT) Consumer remain Electronics – 5G automotive – Cellular IoT – Media services – Consumer electronics
Slide 23: Appendix 5 – 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 Third quarter report 2025 Annual Report 2024 Ericsson Investor Relations homepage October 14
Slide 24: 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