Strategic highlights - solid strategic and operational execution 

• Operational excellence led to a 48% adjusted[1] gross margin and a three-year high in adjusted[1] EBITA margin.  

• Solid strategic execution in Cloud Software and Services delivered strong segment adjusted[1] EBITA.  

• Strong progress in IPR licensing; further opportunities to increase IPR revenues remain.  

Financial highlights - improved contribution from all segments 

• Sales grew by 2%*, driven by market area Americas and IPR licensing, partly offset by declines in other market areas, with investments in India on hold. Reported sales were SEK 56.1 (59.8) b., with a SEK -4.7 b. FX impact.  

• Adjusted[1] gross income increased to SEK 27.0 (26.3) b. driven by strong operational execution and higher IPR licensing revenues, benefiting from a settlement. Reported gross income was SEK 26.6 (25.8) b.  

• Adjusted[1] gross margin was 48.0% (43.9%) supported by improvements in all segments, despite currency headwinds. Reported gross margin was 47.5% (43.1%).  

• Adjusted[1] EBITA was SEK 7.4 (4.1) b. with a 13.2% (6.8%) margin, benefiting from higher gross income and lower operating expenses. Reported EBITA was SEK 6.8 (2.4) b. with a 12.0% (4.1%) margin.  

• Net income was SEK 4.6 (-11.0) b. EPS diluted was SEK 1.37 (-3.34). Net income in 2024 was impacted by a SEK -11.4 b. impairment charge.  

• Free cash flow before M&A was SEK 2.6 (7.6) b. Q2 2024 benefited from strong working capital release. 

Börje Ekholm, President and CEO, said: "Our Q2 results demonstrate solid execution of our strategic and operational priorities. We achieved a three-year high in adjusted EBITA margin, supported by continued efficiency actions. We have structurally lowered our cost base and are strongly focused on delivering further efficiencies.  

It is encouraging that Americas' growth continues, and that Europe has stabilized. Global fixed wireless access (FWA) customers have now surpassed 160 million and are driving significant network traffic. Penetration of 5G standalone is still limited but is needed to fully support AI use cases at the edge, requiring ultra-low latency and enhanced uplink performance.  

Looking ahead, we are increasing AI investments, including in our Sweden AI factory consortium. AI is key to accelerating innovation, as well as driving internal operational efficiencies. The ecosystem for network APIs continues to grow, and Aduna expanded its Network API reach to all three major service providers in Japan."

*Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations.  

[1] Adjusted metrics are adjusted to exclude restructuring charges. 

[2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.  

NOTES TO EDITORS 

You find the complete report with tables in the attached PDF or on https://www.ericsson.com/en/investors/financial-reports/interim-reports

Video webcast for analysts, investors and journalists 

President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a video webcast at 9:00 AM CEST (8:00 AM BST London, 3:00 AM EDT New York). 

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FOR FURTHER INFORMATION, PLEASE CONTACT 

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Media 
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This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 AM CEST on July 15, 2025.