Ericsson(US:ERIC) 智通财经网·2026-01-23 09:01Core Viewpoint - Ericsson reported strong financial results for Q4 2025, exceeding market expectations, driven by recovering global network demand and effective cost control measures. The company announced a significant share buyback plan of 15 billion SEK (approximately 1.7 billion USD), marking its first large-scale buyback initiative since its inception [1][2]. Financial Performance - Adjusted EBITA for Q4 reached 12.7 billion SEK, a 24% increase year-over-year, significantly surpassing analyst estimates of 10.5 billion SEK. The adjusted EBITA margin improved to 18.3% [1][2]. - Net profit surged from 4.9 billion SEK in Q4 2024 to 8.6 billion SEK in Q4 2025, nearly doubling. Diluted earnings per share rose from 1.44 SEK to 2.57 SEK [1][2]. Sales and Revenue - Despite currency fluctuations, total sales slightly decreased to 69.3 billion SEK year-over-year but exceeded market expectations, with organic sales achieving a 6% growth [2]. - The mobile networks segment showed resilience with a 4% organic sales increase, supported by growth in Europe, the Middle East, and Southeast Asia, while the cloud software and services segment experienced a robust 12% organic sales growth [2]. Cash Flow and Shareholder Returns - Ericsson's net cash reserves increased significantly from 37.8 billion SEK to 61.2 billion SEK year-over-year, with free cash flow for Q4 reaching 14.9 billion SEK, providing a solid foundation for shareholder returns [2]. - The company proposed a dividend of 3 SEK per share for 2025, slightly below analyst expectations of 3.76 SEK [2]. Strategic Focus and Market Outlook - The company is focused on cost-cutting measures, having announced a 13% workforce reduction in Sweden and previously cutting around 5,000 jobs globally. CEO Borje Ekholm indicated that cost reductions will continue at the same pace in 2026 [4]. - Ericsson is investing in 5G technology and establishing partnerships with major operators to modernize networks. The company anticipates future growth driven by artificial intelligence applications, which will increase demand for connectivity [5]. - The wireless access network (RAN) market is expected to remain stable, while enterprise and mission-critical markets are projected to grow. The company plans to increase investments in the defense sector, aligning with industry trends [5].