Kvartalsrapport Q1 2025

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===== SIDA 1 =====

1 Ericsson  |  First quarter report 2025. April 15, 2025.  
 
First quarter report 2025 
Strategic highlights – solid momentum in technology leadership and programmable networks  
• Extending technology leadership with expanded high-performing and energy-efficient product portfolio. 
• First high-performing programmable networks partnership for Asia Pacific with Telstra announced. 
• Announced network API fraud detection deployment by all three USA operators and further Aduna partnerships. 
Financial highlights – strong growth in gross income and margins 
• Organic sales were stable, with strong growth in market area Americas offset by declines in other market areas. 
Reported sales were SEK 55.0 (53.3) b. 
• Adjusted1 gross income increased to SEK 26.7 (22.8) b. driven by sales growth and strong gross margin expansion. 
Reported gross income was SEK 26.5 (22.7) b. 
• Adjusted1 gross margin was 48.5% (42.7%) supported by improvements in all segments with strong operational 
execution. Reported gross margin was 48.2% (42.5%). 
• Adjusted1 EBITA was SEK 6.9 (5.1) b. with a 12.6% (9.6%) margin, benefiting from higher gross income. EBITA 
was SEK 6.7 (4.9) b. Q1 2024 included a one-time gain of SEK 1.9 b.  
• Net income was SEK 4.2 (2.6) b. EPS diluted was SEK 1.24 (0.77). 
• Free cash flow before M&A was SEK 2.7 (3.7) b. 
Börje Ekholm, President and CEO, said: “We sustained solid momentum in Q1, despite a challenging and fast changing 
macro backdrop, and our results highlight our competitiveness. Our solid execution contributed to a strong 48.5% 
adjusted gross margin and 12.6% adjusted EBITA margin. 
We extended our technology leadership position further and are on track to offer a portfolio of 130 radios this year that 
support programmable networks. In Q1, we announced the first Asia Pacific programmable network, including 
deployment of 5G Advanced, with Telstra. 
Looking ahead, we remain confident of our strong position in Mobile Networks and expect Enterprise to stabilize during 
2025. In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can 
control and delivering to our customers. We are not immune, but we are resilient, with well diversified production close 
to the customer and the flexibility to adapt to changing conditions over time.”  
 
* Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. 
1 Adjusted metrics are adjusted to exclude restructuring charges. This is a change in nomenclature only, compared with previous reports. 
2 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement. 
SEK b.
Q1
2025
Q1
2024
YoY 
change
Q4
2024
QoQ 
change
Net sales 55.0 53.3 3% 72.9 -25%
 Organic sales growth * ² - - 0% - -
Gross margin ² 48.2% 42.5% - 44.9% -
EBIT 5.9 4.1 45% 8.0 -25%
EBIT margin ² 10.8% 7.7% - 10.9% -
EBITA ² 6.7 4.9 36% 8.6 -23%
EBITA margin ² 12.1% 9.2% - 11.8% -
Net income 4.2 2.6 61% 4.9 -14%
EPS diluted, SEK 1.24 0.77 61% 1.44 -14%
Free cash flow before M&A ² 2.7 3.7 -26% 15.8 -83%
Net cash, end of period ² 38.6 10.8 258% 37.8 2%
Adjusted financial measures ¹ ²
Adjusted gross margin 48.5% 42.7% - 46.3% -
Adjusted EBIT 6.2 4.3 44% 9.6 -35%
Adjusted EBIT margin 11.3% 8.1% - 13.1% -
Adjusted EBITA 6.9 5.1 36% 10.2 -32%
Adjusted EBITA margin 12.6% 9.6% - 14.1% -

===== SIDA 2 =====

2 Ericsson  |  First quarter report 2025. April 15, 2025. Group results 
 
Amounts marked with an ‘*’ in this document represent sales growth adjusted for the impact of acquisitions and divestments and effects of 
foreign currency fluctuations, also named organic sales g rowth. These numbers present performance on a comparable basis to improve the 
comparability of results between periods. Organic sales growth figures are non-IFRS measures.  
‘Adjusted’ metrics are adjusted to exclude restructuring charges and are non-IFRS measures. This is a change in nomenclature only. 
See ‘Financial statements and other information’ for Alternative performance measures. 
Group results 
 
1 Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. 
 
 
Net sales 
Reported sales increased by 3% to SEK 55.0 (53.3) b., including a 
currency benefit of SEK 1.8 b. Networks sales grew by 6% to  
SEK 35.6 b. Cloud Software and Services sales were stable at  
SEK 13.0 b. while Enterprise sales declined by -1% to SEK 5.9 b. 
Sales in segment Other declined by -20% to SEK 0.5 b. 
Organic sales were stable YoY. Networks sales grew by 3%* with 
growth in market area Americas offsetting lower sales in the other 
market areas, where customer investment levels remained low. 
Cloud Software and Services sales declined by -3%* as growth in 
market area South East Asia, Oceania and India was offset by sales 
decline in the other market areas. Sales in segment Enterprise 
declined by -7%*. Growth in Enterprise Wireless Solutions was more 
than offset by lower sales in Global Communications Platform, 
reflecting the decision to focus on more profitable market segments 
and to reduce activities in some countries. 
IPR licensing revenue was SEK 3.2 (3.1) b. benefiting from new 5G 
patent licensing agreements signed in 2024. 82% of IPR licensing 
revenues are reported in segment Networks, with the remainder in 
Cloud Software and Services. Opportunities to further grow IPR 
licensing revenues remain. 
Gross income and margin 
Gross margin increased to 48.2% (42.5%) driven primarily by 
improved gross margin in Networks, benefiting from product and 
market mix, and improved supply chain efficiency. Gross margin 
also increased in Enterprise benefiting from prioritization of 
profitable market segments as well as in Cloud Software and 
Services, benefiting from product mix and improved delivery 
performance.  
Gross income increased to SEK 26.5 (22.7) b. mainly as a result of 
sales and gross margin growth in Networks. Enterprise gross 
income increased, reflecting the focus on more profitable market 
segments. Prior years’ cost-reduction actions positively impacted 
gross margin and gross income in Mobile Networks. Gross income 
also had a SEK 0.8 b. currency benefit. 
Adjusted gross income increased to SEK 26.7 (22.8) b., with a gross 
margin of 48.5% (42.7%). 
Research and development (R&D) expenses 
R&D expenses increased to SEK -12.0 (-11.6) b., including a  
SEK -0.2 b. currency impact. Increased investments in R&D for 
technology leadership and operational resiliency were partly offset 
by savings from cost-reduction actions.  
Selling and administrative (SG&A) expenses 
SG&A expenses were SEK -8.6 (-8.7) b., including a  
SEK -0.3 b. currency impact. Increased investments to improve 
operational effectiveness in Enterprise were offset by a  
SEK 0.4 b. benefit from lower amortization of intangible assets.   
SEK b. 
Q1
2025 
Q1
2024 
YoY 
change 
Q4
2024 
QoQ 
change 
Net sales 55.0 53.3 3% 72.9 -25%
 Organic sales growth ¹ - - 0% - -
Gross income 26.5 22.7 17% 32.7 -19%
Gross margin 48.2% 42.5% - 44.9% -
Research and development (R&D) expenses -12.0 -11.6 - -13.9 -
Selling and administrative expenses -8.6 -8.7 - -10.5 -
Impairment losses on trade receivables 0.0 -0.3 - 0.0 -
Other operating income and expenses 0.0 2.0 -100% -0.1 -
Share in earnings of associated companies 0.0 0.0 - -0.3 -
EBIT 5.9 4.1 45% 8.0 -25%
EBIT margin ¹ 10.8% 7.7% - 10.9% -
EBITA ¹ 6.7 4.9 36% 8.6 -23%
EBITA margin ¹ 12.1% 9.2% - 11.8% -
Financial income and expenses, net -0.1 -0.5 - -0.4 -
Income tax -1.6 -1.0 - -2.7 -
Net income 4.2 2.6 61% 4.9 -14%
Restructuring charges -0.3 -0.2 - -1.6 -
Adjusted financial measures ¹
Adjusted gross margin 48.5% 42.7% - 46.3% -
Adjusted EBIT 6.2 4.3 44% 9.6 -35%
Adjusted EBIT margin 11.3% 8.1% - 13.1% -
Adjusted EBITA 6.9 5.1 36% 10. 2 -32%
Adjusted EBITA margin 12.6% 9.6% - 14.1% -

===== SIDA 3 =====

3 Ericsson  |  First quarter report 2025. April 15, 2025. Group results 
 
Other operating income and expenses 
Other operating income and expenses were SEK 0.0 (2.0) b.  
Q1 2024 included a one-time gain of SEK 1.9 b. from the resolution 
of a commercial dispute. 
Restructuring charges 
Restructuring charges amounted to SEK -0.3 (-0.2) b. mainly related 
to redundancy activities. Gross income included  
SEK -0.2 (-0.1) b. of restructuring charges, while operating expenses 
included SEK -0.1 (-0.1) b. of restructuring charges. 
EBITA 
EBITA increased to SEK 6.7 (4.9) b. corresponding to an  
EBITA margin of 12.1% (9.2%). Higher gross income and broadly 
stable operating expenses were partly offset by lower Other 
operating income and expenses.  
Adjusted EBITA increased to SEK 6.9 (5.1) b. with an adjusted 
EBITA margin of 12.6% (9.6%). 
EBIT  
EBIT increased to SEK 5.9 (4.1) b. with an EBIT margin of  
10.8% (7.7%). Amortization impacted EBIT by SEK -0.7 (-0.8) b. 
Adjusted EBIT increased to SEK 6.2 (4.3) b. The adjusted EBIT 
margin was 11.3% (8.1%).  
Financial income and expenses, net 
Financial income and expenses were SEK -0.1 (-0.5) b. Financial 
net increased primarily as a result of a higher net cash position and 
lower borrowings. The currency hedge effect was SEK 0.2 (0.1) b. 
Income tax 
Taxes were SEK -1.6 (-1.0) b. The effective tax rate was  
28% (28%). 
Net income  
Net income increased to SEK 4.2 (2.6) b. The increase in EBIT and 
improved financial net were partly offset by higher taxes. Diluted 
EPS increased to SEK 1.24 (0.77). 
Employees  
The number of employees on March 31, 2025, was 92,866 
compared with 94,236 on December 31, 2024.

===== SIDA 4 =====

4 Ericsson  |  First quarter report 2025. April 15, 2025. Market area sales 
 
Market area sales
 
 
Changes to market area structure 
In February 2025, the Company announced a consolidation of its 
regional structure, organizing the market areas in a more efficient 
way. This consolidation resulted in two new market areas: Market 
Area Americas and Market Area Europe, Middle East and Africa. 
Market Area Americas  
Sales increased by 20%* YoY, with good growth in North America 
partly offset by lower sales in Latin America.  
In North America, sales in Networks grew strongly, benefiting from 
previous contract wins and accelerated network investments by 
other customers, in part reflecting tariff uncertainty. Sales in Cloud 
Software and Services declined, impacted by the timing of project 
deliverables. In Latin America, sales decreased due to continued 
intense competition and lower customer network investments. 
Reported sales increased by 26% YoY. 
In the quarter, it was announced that AT&T, T-Mobile and Verizon 
will deliver the first advanced Network APIs for number verification 
and SIM swap in the United States during 2025, to improve security 
and fraud detection. 
Market Area Europe, Middle East and Africa 
Sales declined by -7%* YoY. Sales in Europe were stable, supported 
by market share gains and network modernization. Sales declined in 
the Middle East as investment levels moderated following recent 5G 
build-outs, while sales in Africa decreased due to continued 
macroeconomic headwinds. Reported sales decreased by -5% YoY. 
Market Area South East Asia, Oceania and India 
Sales decreased by -17%* YoY. Networks sales declined primarily 
reflecting more normalized operator investment levels in India. 
Cloud Software and Services sales increased, reflecting timing of 
project deliverables. Reported sales declined by -16% YoY. 
In the quarter, the first programmable network in Asia-Pacific was 
announced with Telstra, a multi-year core modernization was 
agreed with One New Zealand, and a 5G Core partnership with 
Bharti Airtel was announced. 
Market Area North East Asia 
Sales declined by -8%* YoY. Networks sales declined due to reduced 
customer investments in some 5G frontrunner markets. Cloud 
Software and Services sales declined reflecting timing of project 
deliverables. Reported sales declined by -6% YoY. 
Market Area Other 
Market area Other includes IPR licensing revenues and almost all 
sales in segment Enterprise. Sales decreased by -6%* due to sales 
decline in Enterprise. Reported sales decreased by -3% YoY. 
In the quarter, a 5G private network deployment was announced 
with Jaguar Land Rover Automotive to leverage Ericsson’s high-
speed, low latency, and secure private 5G solutions to enhance UK 
vehicle production with applications such as vision systems, IoT 
sensors, and production tools. 
On April 3, 2025, an IPR partial settlement was announced that will 
benefit financials from Q2 2025. 
 
SEK b.
Q1
2025
Q1
2024
YoY 
change
YoY 
organic 
growth
Q4
2024
QoQ 
change
Americas 20.8 16.4 26% 20% 25.7 -19%
Europe, Middle East and Africa 14.5 15.3 -5% -7% 21.9 -34%
South East Asia, Oceania and India 7.2 8.6 -16% -17% 8.4 -14%
North East Asia 3.2 3.4 -6% -8% 7.1 -55%
Other 9.3 9.6 -3% -6% 9.8 -4%
 Of which IPR 3.2 3.1 3% - 3.5 -9%
Total 55.0 53.3 3% 0% 72.9 -25%

===== SIDA 5 =====

5 Ericsson  |  First quarter report 2025. April 15, 2025. Segment results 
 
Segment results 
Mobile Networks –  
Segment Networks  
 
Breakdown of sales into products, services and IPR licensing is available in note 3. 
 
 
Net sales 
Sales increased by 3%*, driven by good growth in market area 
Americas, offsetting a sales decline in the other market areas. 
Reported sales increased by 6% YoY to SEK 35.6 (33.7) b., including 
a currency benefit of SEK 1.1 b. 
Sales in North America grew strongly, benefiting from earlier 
contract wins and accelerated network investments by other 
customers, in part reflecting tariff uncertainty. Sales declined 
significantly in market area South East Asia, Oceania and India, 
mainly due to lower sales in India after relatively strong sales in Q1 
2024, as well as in market area Europe, Middle East and Africa due 
to lower sales in Middle East and Africa.  
Gross income and margin 
Adjusted gross margin increased to 51.0% (44.3%), benefiting from 
product and market mix, as well as supply chain efficiency 
improvements and prior years’ cost-reduction actions. Adjusted 
gross income increased to SEK 18.2 (14.9) b. 
EBITA  
Adjusted EBITA increased to SEK 7.5 (4.3) b. YoY and the margin 
was 21.0% (12.7%). The benefit of higher gross income and 
continued efficiency improvements was partly offset by increased 
R&D investments. The R&D investments support the strategy to 
build high-performing programmable networks and ensure 
continued technology leadership. 
Net sales rolling four quarters were SEK 160.1 b. and the adjusted 
EBITA margin rolling four quarters was 19.3%. 
 
Mobile Networks – 
Segment Cloud Software and Services 
 
Breakdown of sales into products, services and IPR licensing is available in note 3. 
 
 
Net sales 
Sales decreased by -3%*. Sales increased in market area South East 
Asia, Oceania and India, benefiting from strong project deliveries in 
India, offset by lower sales in the other market areas, reflecting 
timing of project deliverables. Reported sales were stable at  
SEK 13.0 b., including a currency benefit of SEK 0.4 b. and slight 
growth in core networks. Services accounted for 64% of sales. 
Gross income and margin 
Adjusted gross margin increased to 39.9% (37.4%), benefiting from 
product mix, with higher share of software sales, and the strategic 
focus on improving commercial discipline and delivery performance. 
Adjusted gross income increased to SEK 5.2 (4.9) b. 
EBITA (
loss)  
Adjusted EBITA (loss) was SEK 0.2 (-0.3) b. with a margin of  
1.2% (-2.3%). The benefit of improved gross income was further 
supported by lower operating expenses as a result of prior years’ 
cost-reduction actions. Strategy execution, with a focus on 
commercial discipline, acceleration of automation, and scalable 
software deployments, continues. 
Net sales rolling four quarters were SEK 62.6 b. and the adjusted 
EBITA margin rolling four quarters was 4.0%.  
  
SEK b.
Q1
2025 
Q1
2024 
YoY 
change 
Q4
2024 
Net sales 35.6 33.7 6% 46.8
  Of which IPR licensing revenues 2.6 2.5 3% 2.9
 Organic sales growth - - 3% -
Gross income 18.1 14.9 22% 22.3
Gross margin   50.8% 44.0% - 47.7%
EBIT 7.0 4.2 69% 9.3
EBIT margin   19.8% 12.3% - 19.8%
EBITA 7.4 4.2 76% 9.4
EBITA margin   20.7% 12.4% - 20.0%
Restructuring charges -0.1 - 0.1 - -0.7
Adjusted financial measures 
Adjusted gross margin 51.0% 44.3% - 49.1%
Adjusted EBIT 7.1 4.3 68% 10.0
A
djusted EBIT margin 20.1% 12.6% - 21.4%
Adjusted EBITA 7.5 4.3 75% 10.1
Adjusted EBITA margin 21.0% 12.7% - 21.6%
SEK b. 
Q1
2025 
Q1
2024 
YoY 
change 
Q4
2024 
Net sales 13.0 13.0 -1% 19.5
  Of which IPR licensing revenues 0.6 0.6 3% 0.6
 Organic sales growth - - -3% -
Gross income 5.1 4.8 5% 7.2
Gross margin 39.1% 37.1% - 37.2%
EBIT (loss) 0.1 -0.4 - 1.1
EBIT margin  0.5% -2.8% - 5.6%
EBITA (loss) 0.1 -0.4 - 1.1
EBITA margin  0.6% -2.7% - 5.7%
Restructuring charges -0.1 -0.1 - -0.7
Adjusted financial measures 
Adjusted gross margin 39.9% 37.4% - 39.0%
Adjusted EBIT (loss) 0.1 -0.3 - 1.8
Adjusted EBIT margin 1.1% -2.3% - 9.2%
Adjusted EBITA (loss) 0.2 -0.3 - 1.8
Adjusted EBITA margin 1.2% -2.3% - 9.3%

===== SIDA 6 =====

6 Ericsson  |  First quarter report 2025. April 15, 2025. Segment results 
 
Enterprise –  
Segment Enterprise 
 
1Common costs are included at segment level only (not distributed within the segment). 
Net sales 
Sales declined by -7%* YoY, with lower sales in Global 
Communications Platform partly offset by growth in Enterprise 
Wireless Solutions. Reported sales decreased by -1% YoY to  
SEK 5.9 (6.0) b., including a currency benefit of SEK 0.4 b. 
Reported sales in Enterprise Wireless Solutions grew by 20% YoY, 
driven by higher subscription and product sales in WWAN and 
continued growth in Private 5G and Neutral Host solutions. 
Reported sales in Global Communications Platform declined by  
-9% YoY, impacted by the decision to focus on more profitable 
market segments and to reduce activities in some countries.  
Gross income and margin 
Adjusted gross margin increased to 56.2% (48.1%), benefiting from 
the decision to focus on more profitable market segments in Global 
Communications Platform. Adjusted gross income increased to  
SEK 3.3 (2.9) b. reflecting the decision to focus on more profitable 
market segments, as well as the timing of payments in Technologies 
and New Businesses. 
EBITA (loss) 
Adjusted EBITA (loss) was SEK -0.5 (-0.8) b. The improvement YoY 
primarily reflected higher gross income. Adjusted EBITA margin was 
-8.9% (-13.1%). 
Investments to improve operational effectiveness in Global 
Communications Platform increased, offset by lower amortization 
of intangible assets following the impairment in 2024. 
Net sales rolling four quarters were SEK 24.8 b. and the adjusted 
EBITA margin rolling four quarters was -15.0%.  
 
Segment Other 
 
 
Net sales 
Reported sales declined to SEK 0.5 (0.6) b. reflecting the divestment 
of the IoT business, partly offset by a slight increase in sales in the 
media businesses. 
Gross income and margin 
Adjusted gross income was SEK 0.0 (0.1) b. Adjusted gross margin 
was 4.2% (18.2%). 
EBITA (loss) 
Adjusted EBITA (loss) was SEK -0.2 (1.9) b. Q1 2024 included a 
one-time gain of SEK 1.9 b. from the resolution of a commercial 
dispute. 
Net sales rolling four quarters were SEK 2.1 b.  
 
SEK b. 
Q1
2025 
Q1
2024 
YoY 
change 
Q4
2024 
Net sales 5.9 6.0 -1% 6.1 
Of which Global Comms Platform (Vonage) 3.4 3.7 -9% 3.4 
Of which Enterprise Wireless Solutions 1.2 1.0 20% 1.4 
Organic sales growth - - -7% -
Gross income 3.3 2.9 17% 3.3
Gross margin  56.3% 48.0% - 54.3%
EBIT (loss) -1.0 -1.6 - -1.9
EBIT margin  -17.1% -26.5% - -30.8%
EBITA (loss) -0.6 -0.8 - -1.3
EBITA margin  -10.5% -13.7% - -21.8%
Restructuring charges -0.1 0.0 - -0.2
Adjusted financial measures 
Adjusted gross margin 56.2% 48.1% - 54.3% 
Global Comms Platform (Vonage) 51.0% 43.0% - 49.6% 
Enterprise Wireless Solutions 58.5% 57.2% - 57.5%
Adjusted EBIT (loss) -0.9 -1.5 - -1.7
Adjusted EBIT margin -15.5% -25.9% - -28.3%
Adjusted EBITA (loss) -0.5 -0.8 - -1.2 
Of which Global Comms Platform (Vonage) ¹ -0.5 -0.3 - -0.6 
Of which Enterprise Wireless Solutions ¹ -0.3 -0.4 - -0.5
Adjusted EBITA margin -8.9% -13.1% - -19.3%
SEK b. 
Q1
2025 
Q1
2024 
Yo Y 
change 
Q4
2024 
Net sales 0.5 0. 6 -20% 0.6
 Organic sales growth - - -23% -
Gross income 0.0 0. 1 -83% -0.2
Gross margin  3.8% 18. 2% - -29.5%
EBIT (loss) -0.2 1. 9 - -0.5
EBIT margin  -35.0% 317. 5% - -93.5%
EBITA (loss) -0.2 1. 9 - -0.5
EBITA margin  -35.0% 317.5% - -93.5%
Restructuring charges 0.0 0. 0 - 0.0
Adjusted financial measures 
Adjusted gross margin 4.2% 18. 2% - -22.7%
Adjusted EBIT (loss) -0.2 1. 9 - -0.5
Adjusted EBIT margin -34.6% 319. 5% - -85.9%
Adjusted EBITA (loss) -0.2 1. 9 - -0.5
Adjusted EBITA margin -34.6% 319.5% - -85.9%

===== SIDA 7 =====

7 Ericsson  |  First quarter report 2025. April 15, 2025. Cash flow and financial position 
 
Cash flow and financial position
 
 
Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statements. 
 
Cash flow  
Cash flow from operating activities was SEK 4.4 (5.1) b. The benefit 
of increased earnings and lower interest costs was offset by higher 
operating net assets.  
Operating net assets increased, as higher variable incentive and 
restructuring payments were partly offset by lower operating 
working capital. Operating working capital decreased by SEK 6.2 b., 
benefiting from annual IPR payments received in the quarter. 
Cash flow from investing activities was SEK 1.3 (-1.3) b. driven by 
investments in property, plant and equipment and in product 
development, offset by a positive effect from interest-bearing 
securities.  
Cash flow from financing activities was SEK -0.7 (-8.5) b. mainly 
driven by repayment of lease liabilities. SEK 1.6 b. of commercial 
paper was repaid during the quarter, offset by positive effect from 
received collateral on derivatives. Q1 2024 included SEK -8.4 b. net 
repayment of long-term borrowings.
Financial position 
Gross cash decreased sequentially by SEK -1.7 b. to SEK 74.2 b. 
driven by positive free cash flow before M&A, offset by a negative 
effect of exchange rate changes on cash. Ericsson has unutilized 
committed credit facilities of SEK 30.1 b. (USD 3.0 b.). 
The average maturity of parent company borrowings was 3.5 years 
as of March 31, 2025, compared with 3.7 years as of  
March 31, 2024. 
Net cash increased sequentially by SEK 0.8 b. to SEK 38.6 b. The 
benefit of positive free cash flow was partly offset by negative 
currency impacts on cash and borrowings. 
Liabilities for post-employment benefits decreased to SEK 21.8 b. 
from SEK 24.4 b. The Swedish defined benefit obligation (DBO) was 
calculated using a discount rate based on the yields of Swedish 
government bonds. If the discount rate had been based on Swedish 
covered mortgage bonds, the liability for post-employment benefits 
would have been approximately SEK 12.2 b. (SEK 9.6 b. lower than 
current DBO). 
Free cash flow bridge, SEK b.
Q1
2025 
Q1
2024 
Q4
2024 
Adjusted EBITA 6.9 5.1 10.2
Depreciation and amortization of non-acquired assets 2.0 1.8 2.1
Restructuring charges -0.3 -0.2 -1.6
Changes in operating net assets -2.8 0.7 7.8
Interest paid/received, taxes paid, and other -1.5 -2.4 -1.1
Cash flow from operating activities 4.4 5.1 17.5
Net capex and other investing activities -1.1 -0.8 -1.1
Repayment of lease liabilities -0.6 -0.6 -0.6
Free cash flow before M&A 2.7 3.7 15.8
Cash flow from operating activities 4.4 5.1 17.5
Cash flow from investing activities 1.3 -1.3 -8.3
Cash flow from financing activities -0.7 -8.5 -5.4
SEK b.
Mar 31
2025 
Mar 31
2024 
Dec 31
2024 
Gross cash 74.2 52.0 75.9
 - Borrowings, current 5.6 8.5 6.1
 - Borrowings, non-current 29.9 32.7 31.9
Net cash 38.6 10.8 37.8
Equity 84.9 107.6 93.0
Equity ratio (%) 30.5% 35.9% 31.8%
Capital turnover (times) 1.6 1.4 1.5
Return on capital employed (%) 3.8% -10.5% 2.6%

===== SIDA 8 =====

8 Ericsson  |  First quarter report 2025. April 15, 2025. Key data points 
 
Key data points 
Market 
 
Dell’Oro estimates that the global RAN equipment market will 
remain stable in 2025.  
Source: Dell’Oro Mobile RAN Quarterly Report Q424, March 2025. 
Ericsson  
 
Net sales  
Reported average seasonality last 3 years (2022–2024), %. 
 
Net sales may show large variations between quarters, including 
currency changes. 
Currency exposure 
Rule of thumb: A 10% appreciation/depreciation in the USD vs. SEK 
would have a positive/negative impact of approximately 5% on net 
sales.  
Amortization of intangible assets 
Amortization of intangible assets is expected to be around  
SEK -0.5 b. per quarter, of which approximately SEK -0.4 b. related 
to segment Enterprise. 
Restructuring charges 
Restructuring charges for 2025 are expected to remain at elevated 
levels. 
Segments 
 
There remains increased uncertainty on the outlook for Q2 2025, 
both in terms of potential for further tariff changes as well as in the 
broader macroeconomic environment. 
Networks  
Sales growth in Q2 2025 is expected to be broadly similar to 3-year 
average seasonality. 
Based on our current assessment of announced tariffs, and 
including a negative impact from tariffs estimated at approximately 
1 percentage point, adjusted gross margin in Q2 is expected to be in 
the range of 48% to 50%. 
Cloud Software and Services 
Sales growth in Q2 2025 is expected to be broadly similar to 3-year 
average seasonality. 
 Q4Q1 Q1Q2 Q2Q3 Q3Q4 
Networks -24% +8% +3% +16% 
Cloud Software and 
Services -33% +15% +1% +33%

===== SIDA 9 =====

9 Ericsson  |  First quarter report 2025. April 15, 2025. Parent Company 
 
Parent Company 
Income after financial items January – March 2025, was  
SEK 0.3 (2.6) b. 
At the end of the quarter, gross cash (cash, cash equivalents plus 
interest-bearing securities, current and non-current) amounted to 
SEK 61.2 (37.1) b. 
There was a decrease in intercompany lending of SEK 1.3 b. and an 
increase in intercompany borrowing of SEK 0.2 b. in the quarter. 
At the end of the quarter, non-restricted equity amounted to  
SEK 13.0 (29.8) billion, and total equity amounted to  
SEK 61.3 (78.0) b. 
The proposed dividend for 2024 of SEK 2.85 per share was 
approved by the AGM on March 25, 2025. The dividend will be paid 
in two installments. The first dividend payment of SEK 1.43 per 
share was made with the record date of March 27, 2025, with a 
payment date of April 1, 2025. The second dividend payment of 
SEK 1.42 per share will be made with the record date September 
29, 2025, with an expected payment date of October 2, 2025. 
The holding of treasury stock on March 31, 2025, was  
15,579,561 Class B shares.

===== SIDA 10 =====

10 Ericsson  |  First quarter report 2025. April 15, 2025. Other information 
 
Other information
Legal proceedings involving governmental authorities 
In February 2022, Ericsson publicly disclosed that an internal 
investigation in 2019 included a review of the conduct of 
Ericsson employees, vendors and suppliers in Iraq during the 
period between 2011 to 2019. The investigators could not 
determine the ultimate recipients of any payments, nor identify 
that any Ericsson employee was directly involved in financing 
terrorist organizations. The Company’s 2019 internal Iraq 
investigation did not conclude that Ericsson made or was 
responsible for any payments to any terrorist organization.  
The Company continues to fully cooperate with the DOJ in its 
investigation into matters discussed in the 2019 internal Iraq 
investigation report and related topics concerning jurisdictions 
including Iraq, and the Company is providing additional 
documents and other information which continue to be 
requested by the DOJ. As additional information continues to be 
identified and evaluated in continued cooperation with the DOJ 
during its ongoing investigation, it is expected that there will not 
be any conclusive determinations on the outcome until the 
investigation is completed. The scope and duration of the 
investigation remains uncertain. 
As part of its defense to a now settled patent infringement 
lawsuit filed by Ericsson in 2013 in the Delhi High Court against 
Indian handset company Micromax, Micromax filed a complaint 
against Ericsson with the Competition Commission of India. The 
Competition Commission of India decided to refer the case to the 
Director General’s Office for an in-depth investigation. The 
Competition Commission of India opened similar investigations 
against Ericsson in January 2014 based on claims made by Intex 
Technologies (India) Limited and, in 2015, based on a now 
settled claim from iBall. Ericsson has challenged Competition 
Commission of India’s jurisdiction in these cases before the Delhi 
High Court. On July 13, 2023, the Division Bench of the Delhi 
High Court found that in this instance the Competition 
Commission of India has no power to conduct the pending 
investigations against Ericsson. The Competition Commission of 
India has appealed this order to the Supreme Court of India.  
In April 2019, Ericsson was informed by China’s State 
Administration for Market Regulation Anti-monopoly Bureau 
(SAMR) that SAMR has initiated an investigation into Ericsson’s 
patent licensing practices in China. Ericsson is cooperating with 
the investigation, which is still in a fact-finding phase. The next 
steps include continued fact-finding and meetings with SAMR in 
order to facilitate the authority’s assessment and conclusions. In 
case of adverse findings, SAMR has the power to impose 
behavioral and financial remedies. 
Legal proceedings not involving governmental authorities 
In August 2022, a civil lawsuit was filed in the United States 
District Court for the District of Columbia against 
Telefonaktiebolaget LM Ericsson and Ericsson Inc. (collectively, 
the “Ericsson defendants”). The lawsuit was brought by US 
military service members, employees of US government 
contractors and other civilians who were killed or injured in 
terrorist attacks in Iraq, Afghanistan and Syria from 2005 to 
2021, as well as by their family members. The lawsuit asserts 
claims against the Ericsson defendants under the U.S. Anti-
Terrorism Act alleging that the Ericsson defendants made 
payments that ultimately aided the terrorist organizations that 
committed, planned or authorized the attacks. In November 
2022, the Ericsson defendants filed a motion to dismiss the 
complaint. On December 20, 2022, plaintiffs filed an amended 
complaint, which added additional plaintiffs, including a plaintiff 
injured in Turkey, and also named Ericsson AB (collectively with 
the Ericsson defendants, the “Ericsson corporate defendants”), 
President and CEO Börje Ekholm and a former employee (who 
has not been served with process) as additional defendants and 
also asserted additional allegations and claims. In March 2023, 
the Ericsson corporate defendants and Mr. Ekholm filed motions 
to dismiss the amended complaint. Plaintiffs filed their 
oppositions to defendants’ motions to dismiss the amended 
complaint in June 2023, and defendants filed reply briefs in 
support of their motions to dismiss in July 2023. All briefing has 
been submitted, and resolution of the matter is pending with the 
District Court. All defendants will continue to vigorously defend 
this matter. 
In February 2024, a second civil lawsuit also alleging violations 
of the U.S. Anti-Terrorism Act was filed in the United States 
District Court for the District of Columbia. The lawsuit was filed 
by the same law firm and involves substantially similar factual 
allegations and claims as those made in the Anti-Terrorism Act 
lawsuit originally filed in August 2022, and similarly names the 
same Ericsson corporate defendants, President and CEO Börje 
Ekholm and a former employee as defendants. The new lawsuit 
was brought by additional US military service members, 
employees of US government contractors and other civilians who 
were killed or injured in terrorist attacks in Iraq, Afghanistan, 
Syria, Turkey, Niger, and France from 2005 to 2021, as well as by 
their family members. The District Court for the District of 
Columbia has stayed the proceedings in this matter pending its 
decision on the motions to dismiss in the earlier-filed suit. The 
defendants will vigorously defend this matter. 
Beginning on August 4, 2023, a number of civil lawsuits have 
been filed against Telefonaktiebolaget LM Ericsson in Solna 
District Court, Sweden. 93 claimants have filed suit, which are 
coordinated and financed by a UK-based litigation funder. The 
claimants consist of a group of non-Swedish funds and financial 
institutions that allegedly are or have been shareholders of the 
Company. Their damages claims are primarily based on alleged 
inadequate disclosure of the contents of the Company’s 2019 
internal Iraq investigation report. Ericsson filed its statement of 
defense on March 15, 2024. On February 14, 2025, the District 
Court ordered Ericsson to produce the 2019 internal Iraq 
investigation report to the claimants' external counsel. Ericsson 
has appealed the decision. While proceedings on the merits of 
the case are stayed pending final resolution of the document 
production issue, the District Court has scheduled a preliminary

===== SIDA 11 =====

11 Ericsson  |  First quarter report 2025. April 15, 2025. Other information 
 
hearing for October 16, 2025. Ericsson will continue to vigorously 
defend this matter.  
As previously disclosed, Ericsson has been involved in a global 
patent infringement dispute with certain Lenovo entities since 
October 2023. On April 3, 2025, the parties reached a partial 
settlement, entering into a global patent license agreement. The 
parties have agreed to withdraw from all pending legal 
proceedings and submit the outstanding portion of the dispute to 
arbitration. 
The Company actively manages its IPR portfolio and its need for 
third-party licenses and is involved from time to time, in the 
ordinary course of business, in litigation related thereto, as 
plaintiff, defendant and other capacities. 
In addition to the proceedings discussed above, the Company is, 
and in the future may be, involved in various other regulatory 
investigations, lawsuits, claims (including claims by third-parties 
the Company has indemnified against infringement liability or 
provided guarantees to) and proceedings incidental to the 
ordinary course of business. 
PRESS RELEASES 
Feb 05, 2025 Ericsson appoints Charlotte Levert as Chief 
People Officer 
Feb 25, 2025 Ericsson announces changes to the 
Executive Team and to the Market Area 
structure 
Mar 25, 2025 Ericsson’s Annual General Meeting 2025

===== SIDA 12 =====

12 Ericsson  |  First quarter report 2025. April 15, 2025. Risk factors 
 
Risk factors
Ericsson is exposed to a number of risks in its activities. To stimulate 
identification and support cross-functional treatment within the 
Ericsson Group, risks are grouped in a number of categories, 
including, for example, risks relating to technology, IPR, compliance, 
project execution, operations, products and services, treasury and 
accounting, the geopolitical environment, M&A, cybersecurity and 
occupational health and safety. Ericsson’s risk management is 
embedded into strategy development and operational processes, 
and material Group risks are regularly assessed and reviewed by 
executives as required by Ericsson’s Material Group Risk Protocol to 
ensure accountability, effectiveness, efficiency, business continuity 
and compliance. Risks are defined in both a short-term and long-
term perspective and are related to long-term objectives and 
strategic direction as well as to short-term objectives. Risk factors 
and uncertainties of relevance to Ericsson are described in the 
Ericsson Annual Report 2024 and in the Annual Report on  
Form 20-F for the year ended December 31, 2024 (in the following, 
the “Annual Report 2024”). See also the risks set out in the section 
titled “Forward-looking statements.” 
Stockholm, April 15, 2025  
Telefonaktiebolaget LM Ericsson  
Börje Ekholm, President and CEO  
Org. No. 556016-0680  
This report has not been reviewed by Telefonaktiebolaget LM 
Ericsson auditors. 
Date for next report: July 15, 2025

===== SIDA 13 =====

13 Ericsson  |  First quarter report 2025. April 15, 2025. Editor’s Note 
 
Editor’s note
Media and analyst briefing  
Ericsson invites media, investors and analysts to a conference call 
and live video webcast at 9:00 AM CEST on April 15, 2025.  
 
Link to the webcast, dial-in to audio conference, supporting 
material and replay will be available at:  
www.ericsson.com/investors and 
www.ericsson.com/newsroom 
 
For further information, please contact: 
 
Lars Sandström, Senior Vice President, Chief Financial Officer 
Phone: +46 72 161 20 04 
E-mail: investor.relations@ericsson.com   
 
Stella Medlicott, Senior Vice President, Chief Marketing and 
Communications Officer  
Phone: +46 73 095 65 39  
E-mail: media.relations@ericsson.com 
Telefonaktiebolaget LM Ericsson 
Org. number: 556016-0680 
Torshamnsgatan 21 
SE-164 83 Stockholm 
Phone: +46 10 719 00 00 
www.ericsson.com 
 
Investors 
Daniel Morris, Vice President, 
Head of Investor Relations 
Phone: +44 7386 657217 
E-mail: investor.relations@ericsson.com  
 
Lena Häggblom, Director, 
Investor Relations 
Phone: +46 72 593 27 78 
E-mail: lena.haggblom@ericsson.com 
 
Alan Ganson, Director,  
Investor Relations 
Phone: +46 70 267 27 30 
E-mail: alan.ganson@ericsson.com 
Media 
Ralf Bagner, Head of Media Relations 
Phone: + 46 76 128 47 89 
E-mail: media.relations@ericsson.com 
Corporate Communications  
Phone: +46 10 719 69 92 
E-mail: media.relations@ericsson.com

===== SIDA 14 =====

14 Ericsson  |  First quarter report 2025. April 15, 2025. 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,” “forecast,” “will,” “should,” “would,” “predict,” “aim,” 
“ambition,” “seek,” “potential,” “target,” “might,” “continue,” or, in 
each case, their negative or variations, and similar words or 
expressions are used to identify forward-looking statements. These 
statements are subject to risks and uncertainties that could cause 
actual results to differ materially and adversely from those 
expressed in, or implied or projected by, the forward-looking 
statements, including, in particular the following: 
− Potential material additional liability resulting from past 
conduct, including allegations of past conduct that 
remains unresolved or unknown in multiple jurisdictions 
including Iraq, which remains the subject of ongoing 
investigations by Ericsson and US governmental 
authorities 
− Risks related to internal controls and governance, 
including the potential to incur material liability in 
connection with internal controls surrounding payments 
made to third parties in connection with past conduct in 
multiple jurisdictions including Iraq which remains the 
subject of ongoing investigations by Ericsson and US 
governmental authorities  
− The risk that the ongoing investigations by Ericsson and 
US governmental authorities result in a conclusion by 
Ericsson or US governmental authorities that the 
Company’s past conduct included making or having 
responsibility for making payments to a terrorist 
organization or other improper payments, which could 
lead to material additional liability 
− Risks related to our ongoing compliance with obligations 
under the National Security Agreement entered into in 
connection with Ericsson’s acquisition of Vonage, which 
may adversely affect the Vonage business and subject the 
Company to additional liabilities 
− Our goals, strategies, planning assumptions and 
operational or financial performance expectations 
− Macroeconomic conditions, including inflationary 
pressures and effects on customer investments, market 
recovery and growth 
− Ongoing geopolitical and trade uncertainty, including 
challenging global economic conditions, market trends 
and the imposition of tariffs and sanctions 
− Continued growth of mobile communications, the success 
of our existing and targeted customer base, and our 
ability to maintain technology leadership 
− Success in implementing key strategies, including 
improving profitability, capturing 5G market 
opportunities, capitalizing on network API and Enterprise 
opportunities, and expected benefits from restructuring 
activities 
− Risks related to cybersecurity and privacy, security and 
data localization 
− Industry trends, future characteristics and development of 
the markets in which we operate 
− Risks of global operations, including legal and regulatory 
requirements and uncertainties, and unfavorable lawsuits 
and legal proceedings 
− Our future liquidity, capital resources, capital 
expenditures, cost savings and profitability, and risks 
related to financial condition 
− The expected demand for our existing and new products 
and services as well as plans to launch new products and 
services including research and development 
expenditures 
− Our ability to deliver on future plans and achieve future 
growth 
− The expected operational or financial performance of 
strategic cooperation activities and joint ventures 
− Risks related to acquisitions and divestments that may be 
disruptive and incur significant expenses, including our 
ability to successfully consummate such transactions, 
protect the value of acquisitions during integration, or 
achieve the value anticipated with an acquisition 
− Trends related to our industry, including our regulatory 
environment, competition and customer structure 
− Intense competition from existing competitors, and new 
entrants, including vendor consolidation 
− Limited number of third-party suppliers, large, multi-year 
agreements with limited number of key customers, and 
operator consolidation 
− Risks related to intellectual property, key employees, and 
unforeseen risks and disruptions due to natural or man-
made events 
− Risks related to environmental, social and business 
conduct 
− Extent of impairment impacts on cash flow and dividend 
capacity in future periods, which is assessed based on 
full-year performance and is impacted by a variety of 
factors, including earnings, business outlook and financial 
position 
− Other factors included in our filings with the SEC, 
including the factors described throughout this report, 
included in the section Risk Factors, and in “Risk Factors” 
in the Annual Report 2024, as updated by subsequent 
reports filed with the SEC.  
 
These forward-looking statements also represent our estimates, 
assumptions and expectations only as of the date that they were 
made, and to the extent they represent third-party data, we have 
not undertaken to independently verify such third-party data and do 
not intend to do so. Given these risks and uncertainties, readers are 
cautioned not to place undue reliance on such forward-looking 
statements and are urged to carefully review and consider the 
various disclosures made in this report and in other documents we 
file from time to time with our regulators that disclose risks and 
uncertainties that may affect our business. We expressly disclaim a 
duty to provide updates to these forward-looking statements, and 
the estimates and assumptions associated with them, after the date 
of this report, to reflect events or changes in circumstances or 
changes in expectations or the occurrence of anticipated events, 
whether as a result of new information, future events or otherwise, 
except as required by applicable law or stock exchange regulations.

===== SIDA 15 =====

15 Ericsson |  First quarter report 2025. April 15, 2025. Financial statements and other information 
 
Financial statements and other information 
 
 
Contents 
Financial statements (unaudited) ....................................................................................................................................................................................................... 16 
Condensed consolidated income statement ..................................................................................................................................................................................................... 16 
Condensed statement of comprehensive income (loss) ............................................................................................................................................................................... 16 
Condensed consolidated balance sheet.............................................................................................................................................................................................................. 17 
Condensed consolidated statement of cash flows ......................................................................................................................................................................................... 18 
Condensed consolidated statement of changes in equity ........................................................................................................................................................................... 19 
Condensed consolidated income statement – isolated quarters .............................................................................................................................................................. 19 
Condensed consolidated statement of cash flows – isolated quarters .................................................................................................................................................. 20 
Condensed Parent Company income statement ............................................................................................................................................................................................. 21 
Condensed Parent Company statement of comprehensive income ........................................................................................................................................................ 21 
Condensed Parent Company balance sheet ..................................................................................................................................................................................................... 22 
Accounting policies and Explanatory notes (unaudited) ............................................................................................................................................................. 23 
Note 1 – Accounting policies and Other changes ........................................................................................................................................................................................... 23 
Note 2 – Segment information .............................................................................................................................................................................................................................. 24 
Note 3 – Financial income and expenses, net ................................................................................................................................................................................................. 28 
Note 4 – Provisions ..................................................................................................................................................................................................................................................... 29 
Note 5 – Financial risk management .................................................................................................................................................................................................................. 30 
Note 6 – Cash flow ..................................................................................................................................................................................................................................................... 31 
Note 7 – Contingent liabilities and Assets pledged as collateral .............................................................................................................................................................. 31 
Note 8 – Share information ..................................................................................................................................................................................................................................... 32 
Note 9 – Employee information ............................................................................................................................................................................................................................ 32 
Alternative performance measures (unaudited) ............................................................................................................................................................................ 33 
Sales growth adjusted for comparable units and currency ......................................................................................................................................................................... 34 
Items excluding restructuring charges and impairments of goodwill and intangible assets ......................................................................................................... 35 
EBITA and EBITA margin / Adjusted EBITA and EBITA margin ............................................................................................................................................................. 36 
Rolling four quarters of net sales and adjusted EBITA margin (%) ......................................................................................................................................................... 36 
Gross cash and net cash, end of period ............................................................................................................................................................................................................... 37 
Capital employed ......................................................................................................................................................................................................................................................... 37 
Capital turnover ............................................................................................................................................................................................................................................................ 37 
Return on capital employed ..................................................................................................................................................................................................................................... 38 
Equity ratio ..................................................................................................................................................................................................................................................................... 38 
Return on equity ........................................................................................................................................................................................................................................................... 38 
Operating working capital ........................................................................................................................................................................................................................................ 39 
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) ................................................................................... 39 
Sales growth by segment adjusted for comparable units and currency ................................................................................................................................................. 40 
Sales growth by market area adjusted for comparable units and currency .......................................................................................................................................... 40 
Rolling four quarters of net sales by segment .................................................................................................................................................................................................. 40 
Gross margin by segment by quarter ................................................................................................................................................................................................................... 41 
EBIT margin by segment by quarter .................................................................................................................................................................................................................... 41 
EBITA and EBITA margin by segment by quarter .......................................................................................................................................................................................... 42 
Restructuring charges by function ........................................................................................................................................................................................................................ 43 
Restructuring charges by segment........................................................................................................................................................................................................................ 43 
Adjusted gross income and gross margin by segment .................................................................................................................................................................................. 44 
Adjusted EBIT (loss) and EBIT margin by segment ...................................................................................................................................................................................... 45 
Rolling four quarters of adjusted EBITA margin by segment (%) ............................................................................................................................................................ 45 
Adjusted EBITA and EBITA margin by segment............................................................................................................................................................................................. 46 
Operating working capital days ............................................................................................................................................................................................................................. 46

===== SIDA 16 =====

16 Ericsson | First quarter report 2025. April 15, 2025. Financial statements 
 
Financial statements (unaudited) 
Condensed consolidated income statement 
 
1) Q1 2024 includes a one-time gain of SEK 1.9 billion from the resolution of a commercial dispute. 
2) Based on net income attributable to owners of the Parent Company. 
3) Potential ordinary shares are not considered when their conversion to ordinary shares would improve earnings per share. 
 
 
Condensed statement of comprehensive income (loss) 
  
SEK million Note 2025 2024 Change 
Net sales 2 55,025 53,325 3%
Cost of sales -28,488 -30,667 -7%
Gross income 2 26,537 22,658 17%
Research and development expenses -12,032 -11,571 4%
Selling and administrative expenses -8,621 -8,691 -1%
Impairment losses on trade receivables 32 -257 -112%
Operating expenses -20,621 -20,519 0%
Other operating income and expenses ¹⁾ 8 1,975 -100%
Share of earnings of associated companies 7 -14 -150%
Earnings before financial items and income tax (EBIT) 2 5,931 4,100 45%
Financial income and expenses, net 3 -74 -471 -84%
Income after financial items 5,857 3,629 61%
Income tax -1,640 -1,016 61%
Net income 4,217 2,613 61%
Net income attributable to:
 Owners of the Parent Company 4,149 2,559
 Non-controlling interests 68 54
Other information
 Average number of shares, basic (million) 8 3,333 3,331
 Earnings per share, basic (SEK) ²⁾ 8 1.25 0.77
 Earnings per share, diluted (SEK) ²⁾ ³⁾ 8 1.24 0.77
Q1
SEK million 2025 2024
Net income 4,217 2,613
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit pension plans 2,711 5,061
Revaluation of credit risk on borrowings 28 -327
Tax on items that will not be reclassified to profit or loss -476 -926
Items that have been or may be reclassified to profit or loss
Cash flow hedge reserve
 Gains/losses arising during the period 2,929 -2,583
 Reclassification adjustments on gains/losses included in profit or loss 293 40
Translation reserves
     Changes in translation reserves -7,616 6,074
     Reclassification to profit or loss - -103
Share of other comprehensive income of associated companies -50 37
Tax on items that have been or may be reclassified to profit or loss -664 524
Total other comprehensive income (loss), net of tax -2,845 7,797
Total comprehensive income 1,372 10,410
Total comprehensive income (loss) attributable to:
 Owners of the Parent Company 1,215 10,439
 Non-controlling interests 157 -29
Q1

===== SIDA 17 =====

17 Ericsson | First quarter report 2025. April 15, 2025. Financial statements 
 
 
Condensed consolidated balance sheet 
 
  
Mar 31 Dec 31 
SEK million Note 2025 2024
Assets
Non-current assets  
Intangible assets
 Capitalized development expenses 4,409 4,593
 Goodwill 51,511 56,077
 Customer relationships, IPR and other intangible assets 6,962 7,954
Property, plant and equipment  9,810 10,545
Right-of-use assets 5,998 6,487
Financial assets
 Equity in associated companies 1,294 1,179
 Other investments in shares and participations 5 1,777 2,029
 Customer finance, non-current 5 27 190
 Interest-bearing securities, non-current 5 24,436 19, 440
 Other financial assets, non-current 5 5,726 5,161
Deferred tax assets 22,537 24,412
134,487 138,067
Current assets 
Inventories 27,649 27,125
Contract assets 5,735 6,924
Trade receivables 5 41,428 44,151
Customer finance, current 5 2,396 4,332
Current tax assets 5,126 6,083
Other current receivables 11,420 9,261
Interest-bearing securities, current 5 5,147 12,546
Cash and cash equivalents 5 44,590 43,885
143,491 154,307
Total assets 277,978 292,374
Equity and liabilities
Equity
Stockholders' equity 86,039 94,284
Non-controlling interest in equity of subsidiaries -1,181 -1,301
84,858 92,983
Non-current liabilities 
Post-employment benefits 21,830 24,448
Provisions, non-current 4 2,541 3,511
Deferred tax liabilities 1,365 1,295
Borrowings, non-current 5 29,929 31,904
Lease liabilities, non-current 4,970 5,363
Other non-current liabilities 888 996
61,523 67,517
Current liabilities
Provisions, current 4 6,552 8,204
Borrowings, current 5 5,597 6,137
Lease liabilities, current 1,922 2,132
Contract liabilities 46,757 41,229
Trade payables 5 26,450 30,173
Current tax liabilities 2,664 3,322
Other current liabilities 41,655 40,677
131,597 131,874
Total equity and liabilities 277,978 292,374

===== SIDA 18 =====

18 Ericsson | First quarter report 2025. April 15, 2025. Financial statements 
 
 
Condensed consolidated statement of cash flows 
 
  
Jan-Dec
SEK million Note 2025 2024 2024
Operating activities
Net income 4,217 2,613 374
Adjustments for
 Taxes 1,754 1,273 2,540
 Earnings/dividends in associated companies 2 3 459
 Depreciation, amortization and impairment losses 6 2,750 2,612 25, 734
 Other 115 340 1,884
8,838 6,841 30,991
Changes in operating net assets
Inventories -2,268 2,735 10,208
Customer finance, current and non-current 1,864 2,134 2,755
Trade receivables and contract assets -312 236 2,576
Trade payables -1,572 -4,022 496
Provisions and post-employment benefits -2,315 -2,270 -53
Contract liabilities 8,596 6,520 4,598
Other operating assets and liabilities, net -6,830 -4,600 2,237
-2,837 733 22,817
Interest received 676 391 1,800
Interest paid -771 -1,297 -3,043
Taxes paid -1,548 -1,593 -6,304
Cash flow from operating activities 4,358 5,075 46,261
Investing activities
Investments in property, plant and equipment 6 -729 -434 -2,340
Sales of property, plant and equipment 39 24 116
Acquisitions/divestments of subsidiaries and other operations, net -4 -106 -311
Product development 6 -307 -386 -1,300
Purchase of interest-bearing securities -6,520 -1,618 -19,622
Sales of interest-bearing securities 5,704 2,204 11, 247
Other investing activities 6 3,122 -1,025 -3,742
Cash flow from investing activities 1,305 -1,341 -15,952
Financing activities
Proceeds from issuance of borrowings - 1,967 3,615
Repayment of borrowings -79 -10,401 - 15,917
Dividends paid - - -9,233
Repayment of lease liabilities -593 -601 -2,492
Other financing activities -60 538 162
Cash flow from financing activities -732 -8,497 -23,865
Effect of exchange rate changes on cash -4,226 1,421 2,251
Net change in cash and cash equivalents 705 -3,342 8,695
Cash and cash equivalents, beginning of period 43,885 35,190 35,190
Cash and cash equivalents, end of period 44,590 31,848 43,885
Q1

===== SIDA 19 =====

19 Ericsson | First quarter report 2025. April 15, 2025. Financial statements 
 
 
Condensed consolidated statement of changes in equity 
 
1) Jan-Mar 2025 includes accrual of SEK 9,535 million for the proposed dividend approved by the Annual General Meeting on March 25, 2025.  
 
Condensed consolidated income statement – isolated quarters 
 
1) Q2 2024 includes an impairment of intangible assets, of which R&D expenses SEK -1.2 billion, SG&A expenses SEK -12.6 billion and income tax SEK 3.7 billion.  
2) Q2 2024 includes a goodwill impairment of SEK -1.3 billion. Q1 2024 includes a one-time gain of SEK 1.9 billion from the resolution of a commercial dispute.  
3) Based on net income attributable to owners of the Parent Company. 
4) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.   
Jan-Dec
SEK million 2025 2024 2024
Opening balance 92,983 97,408 97,408
Total comprehensive income 1, 372 10,410 4,715
Sale/repurchase of own shares - - -21
Share issue, net - - 21
Long-term variable compensation plans 38 25 93
Dividends to shareholders ¹⁾ -9,535 -204 - 9,233
Closing balance 84,858 107,639 92,983
Jan-Mar
Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 
Net sales 55,025 72,913 61,794 59,848 53,325
Cost of sales -28,488 -40,206 -33,609 -34,033 -30,667
Gross income 26,537 32,707 28,185 25,815 22,658
Research and development expenses ¹⁾ -12,032 -13,877 -13,140 -14,926 -11,571
Selling and administrative expenses ¹⁾ -8,621 -10,512 -9,380 -23,074 -8,691
Impairment losses on trade receivables 32 -2 78 -84 -257
Operating expenses -20,621 -24,391 -22,442 -38,084 -20,519
Other operating income and expenses ²⁾ 8 -50 4 -1,299 1,975
Share of earnings of associated companies 7 -308 27 49 -14
Earnings (loss) before financial items and income tax (EBIT) 5,931 7,958 5,774 -13,519 4,100
Financial income and expenses, net -74 -391 -501 -361 -471
Income (loss) after financial items 5,857 7,567 5,273 -13,880 3,629
Income tax ¹⁾ -1,640 -2,688 -1,392 2,881 -1,016
Net income (loss) 4,217 4,879 3,881 -10,999 2,613
    
Net income (loss) attributable to:    
 Owners of the Parent Company 4,149 4,779 3,814 -11,132 2,559
 Non-controlling interests 68 100 67 133 54
Other information    
 Average number of shares, basic (million) 3,333 3,333 3,333 3,332 3,331
 Earnings (loss) per share, basic (SEK) ³⁾ 1.25 1.44 1.14 -3.34 0.77
 Earnings (loss) per share, diluted (SEK) ³⁾ ⁴⁾ 1.24 1.44 1.14 -3.34 0.77
2025 2024

===== SIDA 20 =====

20 Ericsson | First quarter report 2025. April 15, 2025. Financial statements 
 
 
Condensed consolidated statement of cash flows – isolated quarters 
 
 
 
 
  
Isolated quarters, SEK million Q1 Q4 Q3 Q2 Q1 
Operating activities
Net income (loss) 4,217 4,879 3,881 -10,999 2,613
Adjustments for
 Taxes 1,754 2,563 1,397 -2,693 1,273
 Earnings/dividends in associated companies 2 387 110 -41 3
 Depreciation, amortization and impairment losses 2,750 2,815 2,292 18,015 2,612
 Other 115 528 592 424 340
8,838 11,172 8,272 4,706 6,841
Changes in operating net assets
Inventories -2,268 2,876 1,358 3,239 2,735
Customer finance, current and non-current 1,864 -225 1,211 -365 2,134
Trade receivables and contract assets -312 -3,041 3,524 1,857 236
Trade payables -1,572 2,580 -3 1,941 -4,022
Provisions and post-employment benefits -2,315 958 955 304 -2,270
Contract liabilities 8,596 -407 -117 -1,398 6,520
Other operating assets and liabilities, net -6,830 5,088 859 890 -4,600
-2,837 7,829 7,787 6,468 733
Interest received 676 518 506 385 391
Interest paid -771 -543 - 526 -677 -1,297
Taxes paid -1,548 -1,463 -1,642 -1,606 -1,593
Cash flow from operating activities 4,358 17,513 14,397 9,276 5,075
Investing activities
Investments in property, plant and equipment -729 -667 -540 -699 -434
Sales of property, plant and equipment 39 14 36 42 24
Acquisitions/divestments of subs. and other operations, net -4 -95 -62 -48 -106
Product development -307 -323 -264 -327 -386
Purchase of interest-bearing securities -6,520 -6,642 -5,517 -5,845 -1,618
Sales of interest-bearing securities 5,704 2,605 4,937 1,501 2,204
Other investing activities 3,122 -3,219 1,113 -611 -1,025
Cash flow from investing activities 1,305 -8,327 -297 -5,987 -1,341
Financing activities
Proceeds from issuance of borrowings - 485 1,161 2 1,967
Repayment of borrowings -79 - 373 -5,127 -16 -10,401
Dividends paid - -4,514 -8 -4,711 -
Repayment of lease liabilities -593 -626 -607 -658 -601
Other financing activities -60 -419 356 -313 538
Cash flow from financing activities -732 -5,447 -4,225 -5,696 -8,497
Effect of exchange rate changes on cash -4,226 2,823 -1,288 -705 1,421
Net change in cash and cash equivalents 705 6,562 8,587 -3,112 -3,342
Cash and cash equivalents, beginning of period 43,885 37,323 28,736 31,848 35,190
Cash and cash equivalents, end of period 44,590 43,885 37,323 28,736 31,848
2025 2024

===== SIDA 21 =====

21 Ericsson | First quarter report 2025. April 15, 2025. Financial statements 
 
 
Condensed Parent Company income statement 
 
 
Condensed Parent Company statement of comprehensive income 
 
 
  
Jan-Dec
SEK million 2025 2024 2024
Net sales - - -
Cost of sales - - -
Gr
oss income - - -
Operating expenses -437 -370 -1,320
Other operating income and expenses 657 2,658 4,827
EBIT 220 2,288 3,507
Financial net 62 357 3,138
Income after financial items 282 2,645 6,645
Transfers to (-) / from untaxed reserves - - -2,415
Income tax -69 -453 -488
Net income 213 2,192 3,742
Q1
Jan-Dec
SEK million 2025 2024 2024
Net income 213 2,192 3,742
Other comprehensive income, net of tax - - -
Total comprehensive income 213 2,192 3,742
Q1

===== SIDA 22 =====

22 Ericsson | First quarter report 2025. April 15, 2025. Financial statements 
 
 
Condensed Parent Company balance sheet 
 
 
 
Mar 31 Dec 31 
SEK million 2025 2024
Assets
Fixed assets
Intangible assets 155 160
Tangible assets 280 295
Financial assets ¹⁾ 125,940 121,721
126,375 122,176
Current assets 
Receivables 17,505 19,876
Short-term investments 5,008 12,222
Cash and cash equivalents 31,712 27,073
54,225 59,171
Total assets 180,600 181,347
Stockholders' equity, provisions and liabilities
Equity
Restricted equity 48,235 48,235
Non-restricted equity 13,049 22,335
61,284 70,570
Provisions 107 144
Non-current liabilities 29,914 31,884
Current liabilities 89,295 78,749
Total stockholders' equity, provisions and liabilities 180,600 181,347
¹⁾ Of which interest-bearing securities, non-c urrent 24,436 19,439

===== SIDA 23 =====

23 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Accounting policies and Explanatory notes 
(unaudited) 
Note 1 – Accounting policies and Other changes  
Accounting policies 
 
The Group 
This condensed consolidated interim financial report for the reporting period ended March 31, 2025, has been prepared in accordance with 
International Accounting Standard IAS 34 “Interim Financial Reporting”. The term “IFRS” used in this document refers to the application of 
IAS and IFRS as well as interpretations of these standards as issued by IASB’s Standards Interpretation Committee (SIC) and IFRS 
Interpretations Committee (IFRIC). The accounting policies adopted are consistent with those of the annual report for the year ended 
December 31, 2024, and should be read in conjunction with that annual report. Amendments to IFRS standards that became effective 
during 2025 do not have a material impact on the result and financial position of the Company. 
 
Changes applied in Q1 2025 
 
New market area structure implemented in Q1 2025 
On February 25, 2025, it was announced that effective March 15, 2025, two new market areas are created – market area Americas and 
market area Europe, Middle East and Africa. This is done by merging market area Europe and Latin America, market area North America, 
and market area Middle East and Africa. From Q1 2025 the following market area structure is presented: 
- Americas 
- Europe, Middle East and Africa 
- South East Asia, Oceania and India 
- North East Asia 
The financial reporting by market areas is reflecting the new structure and prior quarters have been restated accordingly. 
 
Updated definitions of Alternative performance measures (APMs) 
From Q1 2025 the Company has decided to update the definitions of the following APMs. The Company believes the updated definitions 
better reflect the underlying results of the Company's operations over time. 
- Return on capital employed (ROCE) 
- Capital turnover (CTO) 
- Inventory turnover days (ITO)  
- Days sales outstanding (DSO) 
- Days payables outstanding (DPO) 
- Operating working capital days  
The APMs are now based on a rolling average rather than an average of the beginning and the end of the period. Prior periods have been 
updated accordingly. In addition, Operating working capital has been added as an APM. For more information, see the APM section in this 
report.

===== SIDA 24 =====

24 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Note 2 – Segment information 
Net sales by segment by quarter 
 
  
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 35,643 46,797 40,016 37,679 33,715
 Of which Products 28,060 36,592 31,242 28,583 25,397
 Of which Services 7,583 10,205 8,774 9,096 8,318
Cloud Software and Services 12,975 19,457 14,953 15,180 13,045
 Of which Products 4,719 7,826 5,240 4,814 4,529
 Of which Services 8,256 11,631 9,713 10,366 8,516
Enterprise 5,933 6,090 6,319 6,484 5,970
Other 474 569 506 505 595
Total 55,025 72,913 61,794 59,848 53,325
Sequential change, percent Q1  Q4 Q3 Q2 Q1 
Networks -24% 17% 6% 12% -25%
 Of which Products -23% 17% 9% 13% -27%
 Of which Services -26% 16% -4% 9% -19%
Cloud Software and Services -33% 30% -1% 16% -33%
 Of which Products -40% 49% 9% 6% -36%
 Of which Services -29% 20% -6% 22% -32%
Enterprise -3% -4% -3% 9% -11%
Other -17% 12% 0% -15% -5%
Total -25% 18% 3% 12% -26%
Year over year change, percent Q1  Q4 Q3 Q2 Q1 
Networks 6% 4% -4% -11% -21%
 Of which Products 10% 5% -2% -13% -21%
 Of which Services -9% -1% -10% -6% -19%
Cloud Software and Services -1% -1% -4% 0% -3%
 Of which Products 4% 11% 5% -7% 2%
 Of which Services -3% -7% -8% 4% -5%
Enterprise -1% -9% -5% 2% 0%
Other -20% -9% -28% -2% -14%
Total 3% 1% -4% -7% -15%
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 35,643 158,207 111,410 71,394 33,715
 Of which Products 28,060 121,814 85,222 53,980 25,397
 Of which Services 7,583 36,393 26,188 17,414 8,318
Cloud Software and Services 12,975 62,635 43,178 28,225 13,045
 Of which Products 4,719 22,409 14,583 9,343 4,529
 Of which Services 8,256 40,226 28,595 18,882 8,516
Enterprise 5,933 24,863 18,773 12,454 5,970
Other 474 2,175 1,606 1,100 595
Total 55,025 247,880 174,967 113,173 53,325
Year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 6% -8% -12% -16% -21%
 Of which Products 10% -7% -12% -17% -21%
 Of which Services -9% -9% -12% -13% -19%
Cloud Software and Services -1% -2% -2% -1% -3%
 Of which Products 4% 3% 0% -3% 2%
 Of which Services -3% -4% -3% 0% -5%
Enterprise -1% -3% -1% 1% 0%
Other -20% -14% -16% -9% -14%
Total 3% -6% -9% -11% -15%
2025 2024
2025 2024
2025 2024
2025 2024
2025 2024

===== SIDA 25 =====

25 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Gross income by segment by quarter 
 
 
 
EBIT (loss) by segment by quarter 
 
  
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 18,112 22,326 19,332 17,139 14,851
Cloud Software and Services 5,069 7,243 5,537 5,407 4,834
Enterprise 3,338 3,306 3,307 3,310 2,865
Other 18 -168 9 -41 108
Total 26,537 32,707 28,185 25,815 22,658
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 18,112 73,648 51,322 31,990 14,851
Cloud Software and Services 5,069 23,021 15,778 10,241 4,834
Enterprise 3,338 12,788 9,482 6,175 2,865
Other 18 -92 76 67 108
Total 26,537 109,365 76,658 48,473 22,658
2025 2024
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 7,040 9,267 7,492 4,750 4,156
Cloud Software and Services 71 1,099 -443 -728 -363
Enterprise -1,014 -1,876 -1,201 -17,424 -1,582
Other -166 -532 -74 -117 1,889
Total 5,931 7,958 5,774 -13,519 4,100
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 7,040 25,665 16,398 8,906 4,156
Cloud Software and Services 71 -435 -1,534 -1,091 -363
Enterprise -1,014 -22,083 -20,207 -19,006 -1,582
Other -166 1,166 1,698 1,772 1,889
Total 5,931 4,313 -3,645 -9,419 4,100
2025 2024

===== SIDA 26 =====

26 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Net sales by market area by quarter 
 
 
 
 
 
 
3) 2024 has been restated to reflect the changes in market area structure, see note 1 "Accounting policies and Other changes" for more information. 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Americas 20,762 25,737 23,366 19,838 16,449
Europe, Middle East and Africa ¹⁾ ²⁾ 14,475 21,865 16,893 17,265 15,287
South East Asia, Oceania and India 7,226 8,449 7,702 7,694 8,565
North East Asia 3,215 7,090 3,686 4,561 3,424
Other ¹⁾ ²⁾ 9,347 9,772 10,147 10,490 9,600
Total 55,025 72,913 61,794 59,848 53,325
¹⁾ Of which in Sweden 461 597 432 583 729
²⁾ Of which in EU 7,566 10,935 8,157 8,606 7,566
2025 2024 ³⁾
Sequential change, percent Q1  Q4 Q3 Q2 Q1 
Americas -19% 10% 18% 21% -12%
Europe, Middle East and Africa ¹⁾ ²⁾ -34% 29% -2% 13% -33%
South East Asia, Oceania and India -14% 10% 0% -10% -27%
North East Asia -55% 92% -19% 33% -62%
Other ¹⁾ ²⁾ -4% -4% -3% 9% -1%
Total -25% 18% 3% 12% -26%
¹⁾ Of which in Sweden -23% 38% -26% -20% 115%
²⁾ Of which in EU -31% 34% -5% 14% -25%
2025 2024 ³⁾
Year over year change, percent Q1  Q4 Q3 Q2 Q1 
Americas 26% 38% 37% 11% -17%
Europe, Middle East and Africa ¹⁾ ²⁾ -5% -4% -8% -3% -1%
South East Asia, Oceania and India -16% -28% -44% -44% -38%
North East Asia -6% -22% -31% -10% -22%
Other ¹⁾ ²⁾ -3% 1% 1% 6% 6%
Total 3% 1% -4% -7% -15%
¹⁾ Of which in Sweden -37% 76% -5% 58% 19%
²⁾ Of which in EU 0% 8% 4% 7% -8%
2025 2024 ³⁾
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Americas 20,762 85,390 59,653 36,287 16,449
Europe, Middle East and Africa ¹⁾ ²⁾ 14,475 71,310 49,445 32,552 15,287
South East Asia, Oceania and India 7,226 32,410 23,961 16,259 8,565
North East Asia 3,215 18,761 11,671 7,985 3,424
Other ¹⁾ ²⁾ 9,347 40,009 30,237 20,090 9,600
Total 55,025 247,880 174,967 113,173 53,325
¹⁾ Of which in Sweden 461 2,341 1,744 1,312 729
²⁾ Of which in EU 7,566 35,264 24,329 16,172 7,566
2025 2024 ³⁾
Year to date, year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Americas 26% 16% 9% -4% -17%
Europe, Middle East and Africa ¹⁾ ²⁾ -5% -4% -4% -2% -1%
South East Asia, Oceania and India -16% -39% -42% -41% -38%
North East Asia -6% -22% -21% -15% -22%
Other ¹⁾ ²⁾ -3% 4% 4% 6% 6%
Total 3% -6% -9% -11% -15%
¹⁾ Of which in Sweden -37% 32% 22% 34% 19%
²⁾ Of which in EU 0% 3% 1% -1% -8%
2025 2024 ³⁾

===== SIDA 27 =====

27 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Net sales by market area by segment 
 
 
1) Includes primarily IPR licensing revenues and a major part of segment Enterprise. 
 
 
 
 
 
 
  
SEK million Networks
Cloud Software 
and Services Enterprise Other Total
Americas 17,163 3,473 126 0 20,762
Europe, Middle East and Africa 8,284 5,952 239 0 14,475
South East Asia, Oceania and India 5,211 2,008 7 0 7,226
North East Asia 2,345 863 7 0 3,215
Other ¹ 2,640 679 5,554 474 9,347
Total 35,643 12,975 5,933 474 55,025
Share of total 65% 24% 11% 0% 100%
Q1 2025
Sequential change, percent Networks
Cloud Software 
and Services Enterprise Other Total
Americas -12% -41% -52% - -19%
Europe, Middle East and Africa -36% -31% -8% - -34%
South East Asia, Oceania and India -9% -26% -56% - -14%
North East Asia -58% -43% -13% -100% -55%
Other -9% -14% 0% -14% -4%
Total -24% -33% -3% -17% -25%
Q1 2025
Year over year change, percent Networks
Cloud Software 
and Services Enterprise Other Total
Americas 38% -10% 100% -100% 26%
Europe, Middle East and Africa -12% 3% 80% -100% -5%
South East Asia, Oceania and India -23% 10% -30% - -16%
North East Asia -6% -3% 40% -100% -6%
Other -2% -1% -4% 2% -3%
Total 6% -1% -1% -20% 3%
Q1 2025

===== SIDA 28 =====

28 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Top 5 countries in sales 
 
 
1) Based on Jan-Mar 2025. Includes IPR licensing revenues. 
 
 
 
IPR licensing revenues by segment by quarter 
 
 
 
Note 3 – Financial income and expenses, net 
Financial income and expenses, net 
 
 
  
Jan-Dec
Country, percentage of net sales¹⁾ 2025 2024 2024
United States 45% 37% 40%
India 7% 10% 6%
United Kingdom 4% 4% 4%
Japan 3% 3% 4%
China 3% 4% 4%
Q1
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 2,606 2,870 2,853 3,187 2,539
Cloud Software and Services 572 630 626 700 557
Total 3,178 3,500 3,479 3,887 3,096
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 2,606 11,449 8,579 5,726 2,539
Cloud Software and Services 572 2,513 1,883 1,257 557
Total 3,178 13,962 10,462 6,983 3,096
2025 2024
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Financial income 619 587 724 742 681
Financial expenses -805 -984 -991 -1,029 -1,099
Net foreign exchange gains/losses 112 6 -234 -74 -53
Total -74 -391 -501 -361 -471
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Financial income 619 2,734 2,147 1,423 681
Financial expenses -805 -4,103 -3,119 -2,128 -1,099
Net foreign exchange gains/losses 112 -355 -361 -127 -53
Total -74 -1,724 -1,333 -832 -471
2025 2024

===== SIDA 29 =====

29 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Note 4 – Provisions 
Provisions 
 
 
 
 
 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Opening balance 11,715 10,544 10,200 10,065 11,706
Additions 1,055 3,329 2,761 2,472 783
Utilization -3,009 -1,830 -1,872 -1,448 -2,140
Of which restructuring -1,201 -1,201 -1,286 -755 -932
Reversal of excess amounts -256 -651 -333 -411 -364
Reclassification, translation difference and other -412 323 -212 -478 80
Closing balance 9,093 11,715 10,544 10,200 10,065
Of which restructuring 2,720 3,872 3,897 3,757 2,953
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Opening balance 11,715 11,706 11,706 11,706 11,706
Additions 1,055 9,345 6,016 3,255 783
Utilization -3,009 -7,290 -5,460 -3,588 -2,140
Of which restructuring -1,201 -4,174 -2,973 -1,687 -932
Reversal of excess amounts -256 -1,759 -1,108 -775 -364
Reclassification, translation difference and other -412 -287 -610 -398 80
Closing balance 9,093 11,715 10,544 10,200 10,065
Of which restructuring 2,720 3,872 3,897 3,757 2,953
2025 2024

===== SIDA 30 =====

30 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Note 5 – Financial risk management 
There have been no changes to the fair value hierarchy categorization from that presented in the latest Annual Report. Where Level 2 and 
Level 3 fair value hierarchies apply, the inputs and valuation methods used remained unchanged. The book values and fair values of 
financial instruments are as follows: 
Financial instruments 
 
 
1) Year to date movements of customer finance receivables are as follows: additions of SEK 2.5 billion, disposals and repayments of SEK 4.3 billion and revaluation loss of SEK 0.2 billion. 
2) Total Cash and cash equivalent is SEK 44.6 (43.9 on Dec 31, 2024) billion, of which SEK 24.0 (24.3 on Dec 31, 2024) billion relating to Cash equivalents are presented in the table above. 
 
 
Exchange rates used in the consolidation 
 
  
SEK billion
Carrying 
value Level 1 Level 2 Level 3 Carrying 
value Level 1 Level 2 Level 3
Assets at fair value through profit or loss
  Customer finance ¹⁾ 2.4 - - 2.4 4.5 - - 4.5
  Interest-bearing securities 29.4 28.4 1.0 - 31.7 30.4 1.3 -
  Cash equivalents ²⁾ 24.0 0.8 23.2 - 24.3 0.3 24.0 -
  Other financial assets 2.3 0.6 - 1.7 2.7 0.8 - 1.9
  Other current assets 1.8 - 1.8 - 0.2 - 0.2 -
Assets at fair value through OCI
  Trade receivables 41.4 - - 41.4 44.2 - - 44.2
Assets at amortized costs
  Interest-bearing securities 0.1 - - - 0.3 - - -
  Other financial assets 0.2 - - - 0.3 - - -
Total financial assets 101.6 108.2
Financial liabilities at designated FVTPL
  Parent company borrowings -33.3 -18.6 -14.7 - -35.7 -19.7 -16.0 -
Financial liabilities at FVTPL
  Other current liabilities -0.7 - -0.7 - -3.3 - -3.3 -
Liabilities at amortized cost
  Trade payables -26.5 - - - -30.2 - - -
  Borrowings -2.2 - - - -2.3 - - -
Total financial liabilities -62.7 -71.5
2025 2024
Mar 31 Dec 31 
Fair value hierarchy level Fair value hierarchy level
Jan-Dec
2025 2024 2024
SEK/EUR - closing rate 10.85 11.53  11.49 
SEK/USD - closing rate 10.03 10.69  10.99 
Jan-Mar

===== SIDA 31 =====

31 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Note 6 – Cash flow 
Information on investments 
Investments in assets subject to depreciation, amortization, impairment and write-downs 
 
 
 
Note 7 – Contingent liabilities and Assets pledged as collateral 
Contingent liabilities and Assets pledged as collateral 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Additions
 Property, plant and equipment 729 667 540 699 434
 Capitalized development expenses 307 323 264 327 386
 IPR, brands and other intangible assets 57 93 78 45 1
Total 1,093 1,083 882 1,071 821
Depreciation, amortization and impairment losses
 Property, plant and equipment 1,029 1,117 924 1,161 941
 Capitalized development expenses 444 409 410 349 312
 Goodwill, IPR, brands and other intangible assets 721 666 429 15,945 793
 Right-of-use assets 556 623 529 560 566
Total 2,750 2,815 2,292 18,015 2,612
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Additions
 Property, plant and equipment 729 2,340 1,673 1,133 434
 Capitalized development expenses 307 1,300 977 713 386
 IPR, brands and other intangible assets 57 217 124 46 1
Total 1,093 3,857 2,774 1,892 821
Depreciation, amortization and impairment losses
 Property, plant and equipment 1,029 4,143 3,026 2,102 941
 Capitalized development expenses 444 1,480 1,071 661 312
 Goodwill, IPR, brands and other intangible assets 721 17,833 17,167 16,738 793
 Right-of-use assets 556 2,278 1,655 1,126 566
Total 2,750 25,734 22,919 20,627 2,612
2025 2024
Mar 31 Dec 31 
SEK million 2025 2024
Contingent liabilities 3, 067 3,559
Assets pledged as collateral 9,493 9,438

===== SIDA 32 =====

32 Ericsson | First quarter report 2025. April 15, 2025. Accounting policies and Explanatory notes 
 
 
Note 8 – Share information 
Number of shares and earnings per share 
 
1) Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.  
2) Based on net income attributable to owners of the Parent Company. 
 
The proposed dividend for 2024 of SEK 2.85 per share was approved by the AGM on March 25, 2025. The dividend will be paid in two 
installments. The first dividend payment of SEK 1.43 per share was made with the record date of March 27, 2025 with a payment date of 
April 1, 2025. The second dividend payment of SEK 1.42 per share will be made with the record date September 29, 2025, with an expected 
payment date of October 2, 2025. 
 
Note 9 – Employee information 
Number of employees 
 
2) 2024 has been restated to reflect the changes in market area structure, see note 1 "Accounting policies and Other changes" for more information. 
 
 
Jan-Dec
2025 2024 2024
Number of shares, end of period (million) 3,348 3,344   3,348 
 Of which class A-shares (million) 262 262   262 
 Of which class B-shares (million) 3,086 3,082   3, 086 
Number of treasury shares, end of period (million) 16 12   16 
Number of shares outstanding, basic, end of period (million) 3,333 3,332   3,333 
Numbers of shares outstanding, diluted, end of period (million) 3,340 3,336   3,339 
Average number of treasury shares (million) 16 13   15 
Average number of shares outstanding, basic (million) 3,333 3,331   3,332 
Average number of shares outstanding, diluted (million) ¹⁾ 3,340 3, 335   3,339 
Earnings per share, basic (SEK) ²⁾ 1.25 0. 77   0.01 
Earnings per share, diluted (SEK) ¹⁾ 1.24 0. 77   0.01 
Q1
End of period Mar 31  Dec 31 Sep 30 Jun 30 Mar 31 
Americas 15,857 16,034 16,554 16,791 17,051
Europe, Middle East and Africa ¹⁾ 40,677 41,387 41,993 43,017 42, 989
South East Asia, Oceania and India 25,991 26,389 26,327 26,558 27,016
North East Asia 10,341 10,426 11,110 11,619 12,084
Total 92,866 94,236 95,984 97,985 99,140
¹⁾ Of which in Sweden 13,222 13,420 13,633 14,109 13,849
2025 2024 ²⁾

===== SIDA 33 =====

33 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures      
 
 
 
 
 
Alternative performance measures (unaudited)
In this section, the Company presents its Alternative Performance 
Measures (APMs), which are not recognized measures of financial 
performance under IFRS. The presentation of APMs has limitations 
as analytical tools and should not be considered in isolation or as a 
substitute for related financial measures prepared in accordance 
with IFRS. 
APMs are presented to enhance an investor’s evaluation of ongoing 
operating results, to aid in forecasting future periods and to 
facilitate meaningful comparison of results between periods. 
Management uses these APMs to, among other things, evaluate 
ongoing operations in relation to historical results, for internal 
planning and forecasting purposes and in the calculation of certain 
performance-based compensation. APMs should not be viewed as 
substitutes for income statement or cash flow items computed in 
accordance with IFRS.  
This section also includes a reconciliation of the APMs to the most 
directly reconcilable line items in the financial statements. For more 
information about non-IFRS key operating measures, see Ericsson 
Annual Report 2024. 
From Q1 2025, the definition of Return on capital employed (ROCE) 
and Capital turnover (CTO) have been updated and is based on a 
rolling average rather than an average of the beginning and the end 
of the period. Prior periods have been updated accordingly. 
Operating working capital has been added as an APM. 
From Q1 2025, the definitions of Inventory turnover days (ITO), 
Days sales outstanding (DSO), Days payables outstanding (DPO) 
and Operating working capital days have been updated and can be 
found in the end of this report. Prior periods have been updated 
accordingly. 
The Company believes the updated definitions better reflect the 
underlying results of the Company's operations over time.

===== SIDA 34 =====

34 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Sales growth adjusted for comparable units and currency 
Sales growth adjusted for the impact of acquisitions and divestments as well as the effects of foreign currency fluctuations. Also named 
organic sales growth. 
 
 
  
Isolated quarters, year over year change Q1  Q4 Q3 Q2 Q1 
Reported net sales 55,025 72,913 61,794 59,848 53,325
 Acquired business - - - - -
 Net FX impact -1,817 683 1,832 22 740
Comparable net sales, excluding FX impact 53,208 73,596 63,626 59,870 54,065
Comparable quarter net sales adj. for acq/div business 53,325 71,881 64,473 64,444 62,553
Organic sales growth (%) 0% 2% -1% -7% -14%
2025 2024
Year to date, year over year change Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Reported net sales 55,025 247,880 174,967 113,173 53,325
 Acquired business - - - - -
 Net FX impact -1,817 3,277 2,594 762 740
Comparable net sales, excluding FX impact 53,208 251,157 177,561 113,935 54,065
Comparable quarter net sales adj. for acq/div business 53,325 263,351 191,470 126,997 62,553
Organic sales growth (%) 0% -5% -7% -10% -14%
2025 2024

===== SIDA 35 =====

35 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Items excluding restructuring charges and impairments of goodwill and intangible assets 
Gross income, operating expenses, and EBIT are presented excluding restructuring charges, and for certain measures, as a percentage of net 
sales. EBIT is also presented excluding restructuring charges and impairments of goodwill and intangible assets.
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Gross income 26,537 32,707 28,185 25,815 22,658
Net sales 55,025 72,913 61,794 59,848 53,325
Gross margin (%) 48.2% 44.9% 45.6% 43.1% 42.5%
Gross income 26,537 32,707 28,185 25,815 22,658
Restructuring charges included in cost of sales 158 1,034 424 466 122
Adjusted gross income 26,695 33,741 28,609 26,281 22,780
Net sales 55,025 72,913 61,794 59,848 53,325
Adjusted gross margin (%) 48.5% 46.3% 46.3% 43.9% 42.7%
Operating expenses -20,621 -24,391 -22,442 -38,084 -20,519
Restructuring charges included in R&D expenses 20 358 966 805 -10
Restructuring charges included in selling and administrative expenses 103 234 163 357 93
Operating expenses excluding restructuring charges -20,498 -23,799 -21,313 -36,922 -20,436
EBIT (loss) 5,931 7,958 5,774 -13,519 4,100
Net sales 55,025 72,913 61,794 59,848 53,325
EBIT margin (%) 10.8% 10.9% 9.3% -22.6% 7.7%
EBIT (loss) 5,931 7,958 5,774 -13,519 4,100
Total restructuring charges 281 1,626 1,553 1,628 205
Adjusted EBIT (loss) 6,212 9,584 7,327 -11,891 4,305
Net sales 55,025 72,913 61,794 59,848 53,325
Adjusted EBIT margin (%) 11.3% 13.1% 11.9% -19.9% 8.1%
Adjusted EBIT (loss) 6,212 9,584 7,327 -11,891 4,305
Impairment of goodwill and intangible assets - 213 - 15,120 -
Adjusted EBIT excluding impairments of goodwill and intangible assets 6,212 9,797 7,327 3,229 4,305
Net sales 55,025 72,913 61,794 59,848 53,325
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 11.3% 13.4% 11.9% 5.4% 8.1%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Gross income 26,537 109,365 76,658 48,473 22,658
Net sales 55,025 247,880 174,967 113,173 53,325
Gross margin (%) 48.2% 44.1% 43.8% 42.8% 42.5%
Gross income 26,537 109,365 76,658 48,473 22,658
Restructuring charges included in cost of sales 158 2,046 1,012 588 122
Adjusted gross income 26,695 111,411 77,670 49,061 22,780
Net sales 55,025 247,880 174,967 113,173 53,325
Adjusted gross margin (%) 48.5% 44.9% 44.4% 43.4% 42.7%
Operating expenses -20,621 -105,436 -81,045 -58,603 -20,519
Restructuring charges included in R&D expenses 20 2,119 1,761 795 -10
Restructuring charges included in selling and administrative expenses 103 847 613 450 93
Operating expenses excluding restructuring charges -20,498 -102,470 -78,671 -57,358 -20,436
EBIT (loss) 5,931 4,313 -3,645 -9,419 4,100
Net sales 55,025 247,880 174,967 113,173 53,325
EBIT margin (%) 10.8% 1.7% -2.1% -8.3% 7.7%
EBIT (loss) 5,931 4,313 -3,645 -9,419 4,100
Total restructuring charges 281 5,012 3,386 1,833 205
Adjusted EBIT (loss) 6,212 9,325 -259 -7,586 4,305
Net sales 55,025 247,880 174,967 113,173 53,325
Adjusted EBIT margin (%) 11.3% 3.8% -0.1% -6.7% 8.1%
       
Adjusted EBIT (loss) 6,212 9,325 -259 -7,586 4,305
Impairment of goodwill and intangible assets - 15,333 15,120 15,120 -
Adjusted EBIT excluding impairments of goodwill and intangible assets 6,212 24,658 14,861 7,534 4,305
Net sales 55,025 247,880 174,967 113,173 53,325
Adjusted EBIT margin excluding impairments of goodwill and intangible assets (%) 11.3% 9.9% 8.5% 6.7% 8.1%
2025 2024

===== SIDA 36 =====

36 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
EBITA and EBITA margin / Adjusted EBITA and EBITA margin 
Earnings before interest, income tax, amortizations and write-downs of acquired intangibles (including goodwill) also expressed as a 
percentage of net sales.  
Adjusted EBITA also expressed as a percentage of net sales.  
 
 
 
 
Additionally, Ericsson provides forward-looking targets for adjusted EBITA margin and Free cash flow before M&A as a percentage of net 
sales, which are non-IFRS financial measures. Ericsson has not provided quantitative reconciliation of these targets to the most directly 
comparable IFRS measures because certain information needed to reconcile these non-IFRS financial measures to the most comparable 
IFRS financial measures are dependent on specific items or impacts that are not yet determined, are subject to incarcerating and variability 
in timing and amount due to their nature, are outside of Ericsson’s control or cannot be predicted, including items and impacts such as 
currency exchange rate changes, acquisitions and disposals, and charges such as impairments or acquisition related charges. Accordingly, 
reconciliation of these non-IFRS forward-looking financial measures are not available without unreasonable efforts. Such unavailable 
reconciling items could significantly impact our results of operations and financial condition. 
 
 
Rolling four quarters of net sales and adjusted EBITA margin (%) 
Net sales, EBITA margin and restructuring charges as a sum of last four quarters. 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Net income (loss) 4,217 4,879 3,881 -10,999 2,613
Income tax 1,640 2,688 1,392 -2,881 1,016
Financial income and expenses, net 74 391 501 361 471
Amortizations and write-downs of acquired intangibles 721 665 429 15,945 793
 Of which segment Enterprise 389 549 378 15,916 762
EBITA 6,652 8,623 6,203 2,426 4,893
Net sales 55,025 72,913 61,794 59,848 53,325
EBITA margin (%) 12.1% 11.8% 10.0% 4.1% 9.2%
Restructuring charges 281 1,626 1,553 1,628 205
Adjusted EBITA 6,933 10,249 7,756 4,054 5,098
Adjusted EBITA margin (%) 12.6% 14.1% 12.6% 6.8% 9.6%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Net income (loss) 4,217 374 -4,505 -8,386 2,613
Income tax 1,640 2,215 -473 -1,865 1,016
Financial income and expenses, net 74 1,724 1,333 832 471
Amortizations and write-downs of acquired intangibles 721 17,832 17,167 16,738 793
 Of which segment Enterprise 389 17,605 17,056 16,678 762
EBITA 6,652 22,145 13,522 7,319 4,893
Net sales 55,025 247,880 174,967 113,173 53,325
EBITA margin (%) 12.1% 8.9% 7.7% 6.5% 9.2%
Restructuring charges 281 5,012 3,386 1,833 205
Adjusted EBITA 6,933 27,157 16,908 9,152 5,098
Adjusted EBITA margin (%) 12.6% 11.0% 9.7% 8.1% 9.6%
2025 2024
Rolling four quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Net sales 249,580 247,880 246,848 249,527 254,123
EBITA 23,904 22,145 20,216 17,841 15,957
Restructuring charges 5,088 5,012 4,906 4,241 5,746
Adjusted EBITA 28,992 27,157 25,122 22,082 21,703
Adjusted EBITA margin (%) 11.6% 11.0% 10.2% 8.8% 8.5%
2025 2024

===== SIDA 37 =====

37 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Gross cash and net cash, end of period 
Gross cash: Cash and cash equivalents plus interest-bearing securities (current and non-current). 
Net cash: Cash and cash equivalents plus interest-bearing securities (current and non-current) less borrowings (current and non-current). 
 
 
Capital employed 
Total assets less non-interest-bearing provisions and liabilities (which includes non-current provisions, deferred tax liabilities, contract 
liabilities, other non-current liabilities, current provisions, trade payables, current tax liabilities and other current liabilities). 
 
 
Capital turnover 
Rolling four quarters of net sales divided by five-point average for capital employed. 
The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. 
 
 
  
SEK million Q1  Q4 Q3 Q2 Q1 
Cash and cash equivalents 44,590 43,885 37,323 28,736 31,848
 + Interest-bearing securities, current 5,147 12,546 10,063 13,838 8,948
 + Interest-bearing securities, non-current 24,436 19,440 14,806 11,146 11,177
Gross cash, end of period 74,173 75,871 62,192 53,720 51,973
 - Borrowings, current 5,597 6,137 3,134 8,067 8,491
 - Borrowings, non-current 29,929 31,904 33,524 32,520 32,675
Net cash, end of period 38,647 37,830 25,534 13,133 10,807
2025 2024
SEK million Q1  Q4 Q3 Q2 Q1 
Total assets 277,978 292,374 272,450 278,486 299,523
Less: Non-interest-bearing provisions and liabilities 
 Provisions, non-current 2,541 3,511 3,036 2, 642 3,952
 Deferred tax liabilities 1,365 1,295 1,255 1,295 3,999
 Other non-current liabilities 888 996 889 865 839
 Provisions, current 6,552 8,204 7,508 7,558 6,113
 Contract liabilities 46,757 41,229 39,540 40,704 42,538
 Trade payables 26,450 30,173 25,888 26,731 25,305
 Current tax liabilities 2,664 3,322 3,821 3,710 3,810
 Other current liabilities 41,655 40,677 36,903 38,485 35,786
Capital employed 149,106 162,967 153,610 156,496 177,181
       
2025 2024
SEK million Q1  Q4 Q3 Q2 Q1 
Net sales, rolling four quarters 249,580 247,880 246,848 249,527 254,123
Average capital employed, rolling five quarters
    Capital employed at end of period -4 177,181 177,965 170,926 197,676 195,403
    Capital employed at end of period -3 156,496 177,181 177,965 170,926 197,676
    Capital employed at end of period -2 153,610 156,496 177,181 177,965 170,926
    Capital employed at end of period -1 162,967 153,610 156,496 177,181 177,965
 Capital employed at end of period  149,106 162,967 153,610 156,496 177,181
 Average capital employed, rolling five quarters 159,872 165,644 167,236 176,049 183,830
Capital turnover (times) 1.6 1.5 1.5 1.4 1.4
2025 2024

===== SIDA 38 =====

38 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Return on capital employed 
Rolling four quarters of EBIT divided by five-point average for capital employed. 
The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. 
 
 
 
Equity ratio 
Equity expressed as a percentage of total assets. 
 
 
Return on equity 
Annualized net income attributable to owners of the Parent Company as a percentage of average stockholders’ equity. 
Annualization factor of four is used for isolated quarter. 
Annualization factor of four is used for Jan-Mar, two is used for Jan-Jun, 4/3 is used for Jan-Sep and one is used for Jan-Dec. 
 
 
 
  
SEK million Q1  Q4 Q3 Q2 Q1 
EBIT (loss), rolling four quarters 6,144 4,313 2,203 -32,479 -19,272
Average capital employed, rolling five quarters
    Capital employed at end of period -4 177,181 177,965 170,926 197,676 195,403
    Capital employed at end of period -3 156,496 177,181 177,965 170,926 197,676
    Capital employed at end of period -2 153,610 156,496 177,181 177,965 170,926
    Capital employed at end of period -1 162,967 153,610 156,496 177,181 177,965
    Capital employed at end of period  149,106 162,967 153,610 156,496 177,181
 Average capital employed, rolling five quarters 159,872 165,644 167,236 176,049 183,830
Return on capital employed (%) 3.8% 2.6% 1.3% -18.4% -10.5% 
20242025
SEK million Q1  Q4 Q3 Q2 Q1 
Total equity 84,858 92,983 85,355 82,467 107,639
Total assets 277,978 292,374 272,450 278,486 299,523
Equity ratio (%) 30.5% 31.8% 31.3% 29.6% 35.9%
2025 2024
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Net income (loss) attributable to owners of the Parent Company 4,149 4,779 3,814 -11,132 2,559
Annualized 16,596 19,116 15,256 -44,528 10,236
Average stockholders' equity
 Stockholders' equity, beginning of period 94,284 86,630 83,840 109, 137 98,673
 Stockholders' equity, end of period 86,039 94,284 86,630 83, 840 109,137
 Average stockholders' equity 90,162 90,457 85,235 96,489 103,905
Return on equity (%) 18.4% 21.1% 17.9% -46.1% 9.9%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Net income (loss) attributable to owners of the Parent Company 4,149 20 -4,759 -8,573 2,559
Annualized 16,596 20 -6,345 -17,146 10,236
Average stockholders' equity
 Stockholders' equity, beginning of period 94,284 98,673 98,673 98, 673 98,673
 Stockholders' equity, end of period 86,039 94,284 86,630 83, 840 109,137
 Average stockholders' equity 90,162 96,479 92,652 91,257 103,905
Return on equity (%) 18.4% 0.0% -6.8% -18.8% 9.9%
2025 2024

===== SIDA 39 =====

39 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Operating working capital  
Inventories, contract assets, trade receivables, customer finance (current and non-current), advances to suppliers and prepaid expenses less 
contract liabilities and trade payables.  
Operating working capital is added from Q1 2025. Refer to the clarification provided at the beginning of the APM section. 
 
1) Part of Other current receivables in the consolidated balance sheet. 
 
Free cash flow before M&A / Free cash flow after M&A / Free cash flow before M&A (% of net sales) 
Free cash flow before M&A: Cash flow from operating activities less net capital expenditures, other investments (excluding M&A) and 
repayment of lease liabilities.  
Free cash flow after M&A: Cash flow from operating activities less net capital expenditures, other investments and repayment of  
lease liabilities. 
Free cash flow before M&A (% of net sales): Free cash flow before M&A as a percentage of net sales. 
 
 
 
1) Other investments is part of the line item Other investing activities in the Consolidated cash flow statement. The differences are movements in other interest-bearing assets, which are not to be part 
of the definition of Free cash flow. 
 
  
SEK million Mar 31  Dec 31 Sep 30 Jun 30 Mar 31 
Inventories 27,649 27,125 29,004 30,897 34,564
Contract assets 5,735 6,924 7,568 6,851 6,715
Trade receivables 41,428 44,151 38,018 43,578 46,246
Customer finance, current 2,396 4,332 3,843 4,590 3,717
Customer finance, non-current 27 190 221 843 1,406
Advance payments to suppliers ¹⁾ 46 47 108 146 167
Prepaid expenses ¹⁾ 3,749 2,659 2,737 3,244 3,501
Less: Contract liabilities 46,757 41,229 39,540 40,704 42,538
Less: Trade payables 26,450 30,173 25,888 26,731 25,305
Operating working capital 7,823 14,026 16,071 22,714 28,473
2025 2024
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Cash flow from operating activities 4,358 17,513 14,397 9,276 5,075
Net capital expenditures and other investments (excl. M&A)
 Investments in property, plant and equipment -729 -667 -540 -699 -434
 Sales of property, plant and equipment 39 14 36 42 24
 Product development -307 -323 -264 -327 -386
 Other investments ¹⁾ -64 -87 -78 -39 -7
 Repayment of lease liabilities -593 -626 -607 -658 -601
Free cash flow before M&A 2,704 15,824 12,944 7,595 3,671
 Acquisitions/divestments of subs and other operations, net -4 -95 -62 - 48 -106
Free cash flow after M&A 2,700 15,729 12,882 7,547 3,565
Net sales 55,025 72,913 61,794 59,848 53,325
Free cash flow before M&A (% of net sales) 4.9% 21.7% 20.9% 12.7% 6.9%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Cash flow from operating activities 4,358 46,261 28,748 14,351 5,075
Net capital expenditures and other investments (excl. M&A)
 Investments in property, plant and equipment -729 -2,340 -1,673 -1,133 -434
 Sales of property, plant and equipment 39 116 102 66 24
 Product development -307 -1,300 -977 -713 -386
 Other investments ¹⁾ -64 -211 -124 -46 -7
 Repayment of lease liabilities -593 -2,492 -1,866 -1,259 -601
Free cash flow before M&A 2,704 40,034 24,210 11,266 3,671
 Acquisitions/divestments of subs and other operations, net -4 -311 -216 - 154 -106
Free cash flow after M&A 2,700 39,723 23,994 11,112 3,565
Net sales 55,025 247,880 174,967 113,173 53,325
Free cash flow before M&A (% of net sales) 4.9% 16.2% 13.8% 10.0% 6.9%
2025 2024

===== SIDA 40 =====

40 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Sales growth by segment adjusted for comparable units and currency 
 
 
 
 
Sales growth by market area adjusted for comparable units and currency 
 
 
1) 2024 has been restated to reflect the changes in market area structure, see note 1 "Accounting policies and Other changes" for more information. 
 
Rolling four quarters of net sales by segment 
 
  
Isolated quarter, year over year change, percent Q1  Q4 Q3 Q2 Q1 
Networks 3% 5% -1% -11% -19%
Cloud Software and Services -3% 0% - 1% 0% -2%
Enterprise -7% -7% -3% 0% 1%
Other -23% -10% -26% -5% -14%
Total 0% 2% -1% -7% -14%
2025 2024
Year to date, year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 3% -6% -10% -15% -19%
Cloud Software and Services -3% -1% - 1% -1% -2%
Enterprise -7% -2% -1% 1% 1%
Other -23% -15% -16% -10% -14%
Total 0% -5% -7% -10% -14%
2025 2024
Isolated quarter, year over year change, percent Q1  Q4 Q3 Q2 Q1 
Americas 20% 40% 42% 10% -16%
Europe, Middle East and Africa -7% -4% -6% -4% -1%
South East Asia, Oceania and India -17% -28% -43% -44% -37%
North East Asia -8% -22% -29% -3% -16%
Other -6% 3% 5% 7% 8%
Total 0% 2% -1% -7% -14%
2025 2024 ¹⁾
Year to date, year over year change, percent Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Americas 20% 18% 10% -4% -16%
Europe, Middle East and Africa -7% -4% -4% -3% -1%
South East Asia, Oceania and India -17% -38% -41% -41% -37%
North East Asia -8% -19% -16% -9% -16%
Other -6% 6% 6% 7% 8%
Total 0% -5% -7% -10% -14%
2025 2024 ¹⁾
Rolling four quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 160,135 158,207 156,408 157,929 162,690
Cloud Software and Services 62,565 62,635 62,736 63,347 63,275
Enterprise 24,826 24,863 25,471 25,825 25,720
Other 2,054 2,175 2,233 2,426 2,438
Total 249,580 247,880 246,848 249,527 254,123
2025 2024

===== SIDA 41 =====

41 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Gross margin by segment by quarter 
 
 
 
EBIT margin by segment by quarter 
 
 
  
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 50.8% 47.7% 48.3% 45.5% 44.0%
Cloud Software and Services 39.1% 37.2% 37.0% 35.6% 37.1%
Enterprise 56.3% 54.3% 52.3% 51.0% 48.0%
Other 3.8% -29.5% 1.8% -8.1% 18.2%
Total 48.2% 44.9% 45.6% 43.1% 42.5%
2025 2024
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 50.8% 46.6% 46.1% 44.8% 44.0%
Cloud Software and Services 39.1% 36.8% 36.5% 36.3% 37.1%
Enterprise 56.3% 51.4% 50.5% 49.6% 48.0%
Other 3.8% -4.2% 4.7% 6.1% 18.2%
Total 48.2% 44.1% 43.8% 42.8% 42.5%
2025 2024
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 19.8% 19.8% 18.7% 12.6% 12.3%
Cloud Software and Services 0.5% 5.6% -3.0% -4.8% -2.8%
Enterprise -17.1% -30.8% -19.0% -268.7% -26.5%
Other -35.0% -93.5% -14.6% -23.2% 317.5%
Total 10.8% 10.9% 9.3% -22.6% 7.7%
2025 2024
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 19.8% 16.2% 14.7% 12.5% 12.3%
Cloud Software and Services 0.5% -0.7% -3.6% -3.9% -2.8%
Enterprise -17.1% -88.8% -107.6% -152.6% -26.5%
Other -35.0% 53.6% 105.7% 161.1% 317.5%
Total 10.8% 1.7% -2.1% -8.3% 7.7%
2025 2024

===== SIDA 42 =====

42 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
EBITA and EBITA margin by segment by quarter 
 
 
 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 7,367 9,375 7,536 4,771 4,179
Cloud Software and Services 76 1,107 -436 -721 -355
Enterprise -625 -1,327 -823 -1,508 -820
Other -166 -532 -74 -116 1,889
Total 6,652 8,623 6,203 2,426 4,893
2025 2024
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 20.7% 20.0% 18.8% 12.7% 12.4%
Cloud Software and Services 0.6% 5.7% -2.9% -4.7% -2.7%
Enterprise -10.5% -21.8% -13.0% -23.3% -13.7%
Other -35.0% -93.5% -14.6% -23.0% 317.5%
Total 12.1% 11.8% 10.0% 4.1% 9.2%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 7,367 25,861 16,486 8,950 4,179
Cloud Software and Services 76 -405 -1,512 -1,076 -355
Enterprise -625 -4,478 -3,151 -2,328 -820
Other -166 1,167 1,699 1,773 1,889
Total 6,652 22,145 13,522 7,319 4,893
2025 2024
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 20.7% 16.3% 14.8% 12.5% 12.4%
Cloud Software and Services 0.6% -0.6% -3.5% -3.8% -2.7%
Enterprise -10.5% -18.0% -16.8% -18.7% -13.7%
Other -35.0% 53.7% 105.8% 161.2% 317.5%
Total 12.1% 8.9% 7.7% 6.5% 9.2%
2025 2024

===== SIDA 43 =====

43 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Restructuring charges by function 
 
 
 
Restructuring charges by segment 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Cost of sales -158 -1,034 -424 -466 -122
Research and development expenses -20 -358 -966 -805 10
Selling and administrative expenses -103 -234 -163 -357 -93
Total -281 -1,626 -1,553 -1,628 -205
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Cost of sales -158 -2,046 -1,012 -588 -122
Research and development expenses -20 -2,119 -1,761 -795 10
Selling and administrative expenses -103 -847 -613 -450 -93
Total -281 -5,012 -3,386 -1,833 -205
2025 2024
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks -108 -738 -585 -481 -95
 of which cost of sales -55 -645 -163 -214 -68
 of which operating expenses -53 -93 -422 -267 -27
Cloud Software and Services -74 -695 -863 -816 -60
 of which cost of sales -102 -348 -243 -246 -49
 of which operating expenses 28 -347 -620 -570 -11
Enterprise -97 -150 -38 -285 -38
 of which cost of sales 1 -2 -1 -3 -5
 of which operating expenses -98 -148 -37 -282 -33
Other -2 -43 -67 -46 -12
 of which cost of sales -2 -39 -17 -3 0
 of which operating expenses 0 -4 -50 -43 -12
Total -281 -1,626 -1,553 -1,628 -205
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks -108 -1,899 -1,161 -576 -95
 of which cost of sales -55 -1,090 -445 -282 -68
 of which operating expenses -53 -809 -716 -294 -27
Cloud Software and Services -74 -2,434 -1,739 -876 -60
 of which cost of sales -102 -886 -538 -295 -49
 of which operating expenses 28 -1,548 -1,201 -581 -11
Enterprise -97 -511 -361 -323 -38
 of which cost of sales 1 -11 -9 -8 -5
 of which operating expenses -98 -500 -352 -315 -33
Other -2 -168 -125 -58 -12
 of which cost of sales -2 -59 -20 -3 0
 of which operating expenses 0 -109 -105 -55 -12
Total -281 -5,012 -3,386 -1,833 -205
2025 2024

===== SIDA 44 =====

44 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Adjusted gross income and gross margin by segment 
 
 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 18,167 22,971 19,495 17,353 14,919
Cloud Software and Services 5,171 7,591 5,780 5,653 4,883
Enterprise 3,337 3,308 3,308 3,313 2,870
Other 20 -129 26 -38 108
Total 26,695 33,741 28,609 26,281 22,780
2025 2024
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 51.0% 49.1% 48.7% 46.1% 44.3%
Cloud Software and Services 39.9% 39.0% 38.7% 37.2% 37.4%
Enterprise 56.2% 54.3% 52.4% 51.1% 48.1%
Other 4.2% -22.7% 5.1% -7.5% 18.2%
Total 48.5% 46.3% 46.3% 43.9% 42.7%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 18,167 74,738 51,767 32,272 14,919
Cloud Software and Services 5,171 23,907 16,316 10,536 4,883
Enterprise 3,337 12,799 9,491 6,183 2,870
Other 20 -33 96 70 108
Total 26,695 111,411 77,670 49,061 22,780
2025 2024
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 51.0% 47.2% 46.5% 45.2% 44.3%
Cloud Software and Services 39.9% 38.2% 37.8% 37.3% 37.4%
Enterprise 56.2% 51.5% 50.6% 49.6% 48.1%
Other 4.2% -1.5% 6.0% 6.4% 18.2%
Total 48.5% 44.9% 44.4% 43.4% 42.7%
2025 2024

===== SIDA 45 =====

45 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Adjusted EBIT (loss) and EBIT margin by segment 
 
 
 
 
 
Rolling four quarters of adjusted EBITA margin by segment (%) 
 
 
  
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 7,148 10,005 8,077 5,231 4,251
Cloud Software and Services 145 1,794 420 88 -303
Enterprise -917 -1,726 -1,163 -17,139 -1,544
Other -164 -489 -7 -71 1,901
Total 6,212 9,584 7,327 -11,891 4,305
2025 2024
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 20.1% 21.4% 20.2% 13.9% 12.6%
Cloud Software and Services 1.1% 9.2% 2.8% 0.6% -2.3%
Enterprise -15.5% -28.3% -18.4% -264.3% -25.9%
Other -34.6% -85.9% -1.4% -14.1% 319.5%
Total 11.3% 13.1% 11.9% -19.9% 8.1%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 7,148 27,564 17,559 9,482 4,251
Cloud Software and Services 145 1,999 205 -215 -303
Enterprise -917 -21,572 -19,846 -18,683 -1,544
Other -164 1,334 1,823 1,830 1,901
Total 6,212 9,325 -259 -7,586 4,305
2025 2024
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 20.1% 17.4% 15.8% 13.3% 12.6%
Cloud Software and Services 1.1% 3.2% 0.5% -0.8% -2.3%
Enterprise -15.5% -86.8% -105.7% -150.0% -25.9%
Other -34.6% 61.3% 113.5% 166.4% 319.5%
Total 11.3% 3.8% -0.1% -6.7% 8.1%
2025 2024
Rolling four quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 19.3% 17.5% 16.0% 14.0% 13.4%
Cloud Software and Services 4.0% 3.2% 3.6% 3. 6% 3.0%
Enterprise -15.0% -16.0% -14.1% -13.2% -11.7%
Other -35.5% 61.4% 62.0% 43.6% 43.9%
Total 11.6% 11.0% 10.2% 8.8% 8.5%
2025 2024

===== SIDA 46 =====

46 Ericsson  |  First quarter report 2025. April 15, 2025. Alternative performance measures 
 
 
Adjusted EBITA and EBITA margin by segment 
 
 
 
 
 
Operating working capital days 
Inventory turnover days (ITO): Five quarter average inventory divided by four quarter rolling absolute value of cost of sales excluding 
restructuring charges multiplied by 365, expressed as number of days. 
Days sales outstanding (DSO): Five quarter average of contract assets, trade receivables and customer finance (current and non-current) 
less contract liabilities divided by four quarter rolling net sales multiplied by 365, expressed as number of days. 
Days payables outstanding (DPO): Five quarter average of advances to suppliers and prepaid expenses less trade payables divided by four 
quarter rolling absolute value of cost of sales excluding restructuring charges multiplied by 365, expressed as number of days. 
Operating working capital days: ITO plus DSO less DPO 
 
The definition is updated from Q1 2025. Prior periods are updated accordingly. Refer to the clarification provided at the beginning of the APM section. 
 
 
 
Isolated quarters, SEK million Q1  Q4 Q3 Q2 Q1 
Networks 7,475 10,113 8,121 5,252 4,274
Cloud Software and Services 150 1,802 427 95 -295
Enterprise -528 -1,177 -785 -1,223 -782
Other -164 -489 -7 -70 1,901
Total 6,933 10,249 7,756 4,054 5,098
2025 2024
Isolated quarters, as percentage of net sales Q1  Q4 Q3 Q2 Q1 
Networks 21.0% 21.6% 20.3% 13.9% 12.7%
Cloud Software and Services 1.2% 9.3% 2.9% 0.6% -2.3%
Enterprise -8.9% -19.3% -12.4% -18.9% -13.1%
Other -34.6% -85.9% -1.4% -13.9% 319.5%
Total 12.6% 14.1% 12.6% 6.8% 9.6%
2025 2024
Year to date, SEK million Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 7,475 27,760 17,647 9,526 4,274
Cloud Software and Services 150 2,029 227 -200 -295
Enterprise -528 -3,967 -2,790 -2,005 -782
Other -164 1,335 1,824 1,831 1,901
Total 6,933 27,157 16,908 9,152 5,098
2025 2024
Year to date, as percentage of net sales Jan-Mar  Jan-Dec Jan-Sep Jan-Jun Jan-Mar 
Networks 21.0% 17.5% 15.8% 13.3% 12.7%
Cloud Software and Services 1.2% 3.2% 0.5% -0.7% -2.3%
Enterprise -8.9% -16.0% -14.9% -16.1% -13.1%
Other -34.6% 61.4% 113.6% 166.5% 319.5%
Total 12.6% 11.0% 9.7% 8.1% 9.6%
2025 2024
Q1  Q4 Q3 Q2 Q1 
Inventory turnover days (ITO) 81 84 92 97 100
Days sales outstanding (DSO) 17 23 26 29 30
Less: Days payables outstanding (DPO) 64 64 63 64 65
Operating working capital days 34 43 55 62 65
2025 2024