Ericsson reports second quarter results 2025

Core Insights - The company reported solid execution of strategic and operational priorities, achieving a three-year high in adjusted EBITA margin, supported by efficiency actions and a structurally lowered cost base [2][5] - Growth in the Americas continues, while Europe has stabilized; global fixed wireless access (FWA) customers have surpassed 160 million, driving significant network traffic [3][5] - The company is increasing investments in AI, which is seen as key to accelerating innovation and driving operational efficiencies [4][5] Financial Highlights - Net sales for Q2 2025 were SEK 56.1 billion, a decrease of 6% year-over-year from SEK 59.8 billion; organic sales growth was 2% [5][6] - Adjusted gross income increased to SEK 27.0 billion, up 3% from SEK 26.3 billion, with an adjusted gross margin of 48.0%, compared to 43.9% in the previous year [5][6] - Adjusted EBITA was SEK 7.4 billion, reflecting an 83% increase year-over-year, with an adjusted EBITA margin of 13.2% [5][6] - Net income for Q2 was SEK 4.6 billion, compared to a loss of SEK 11.0 billion in the previous year; diluted EPS improved to SEK 1.37 from -3.34 [5][6] - Free cash flow before M&A was SEK 2.6 billion, down 66% from SEK 7.6 billion [5][6] Operational Performance - The company achieved a 48% adjusted gross margin and a three-year high in adjusted EBITA margin, indicating strong operational execution [5][6] - Strong progress in IPR licensing was noted, with further opportunities to increase IPR revenues [5] - Sales growth was primarily driven by the Americas and IPR licensing, although there were declines in other market areas [5][6]