Telefonaktiebolaget LM Ericsson (publ)

Telefonaktiebolaget LM Ericsson (publ) (ERIXF) reported FY 2025 net sales of $236.68B, down 5% YoY from $247.88B, with organic growth of 2%. Gross income rose to $112.67B (47.6% margin) from $109.37B (44.1%), driven by cost reductions and favorable mix despite $7.2B currency headwind. EBIT surged to $38.63B (16.3% margin) from $4.31B (1.7%), boosted by $7.6B iconectiv divestment gain; adjusted EBIT was $41.0B (17.3%). Net income reached $28.71B, with EPS diluted at SEK 9 vs. SEK 0.01 prior year. Networks (64% sales) saw $151.0B revenue (-5% YoY), EBIT $29.8B (19.7%). Cloud Software & Services stable at $62.7B, Enterprise down 15% to $21.1B. Cash from operations $33.0B, free cash flow before M&A $26.8B (11.3% of sales). Net cash $61.2B. Strong balance sheet supports R&D leadership and $25B shareholder returns (SEK 3 dividend + SEK 15B buyback). FY26 outlook focuses on AI-native networks, 6G, and enterprise expansion amid geopolitical risks.

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