Telefon AB L.M.Ericsson

ERIC B

Equity

ISIN SE0000108656 / Valor 614663

NASDAQ Nordic Exchange Stockholm, Equities (2025-11-21)

SEK 90.06-0.62%

Telefon AB L.M.Ericsson
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About company

Telefon AB L.M.Ericsson is a Swedish multinational telecommunications company that provides products and services in the areas of network infrastructure, software, and services for telecommunications operators, enterprises, and governments worldwide.

Summarized from source with an LLMView SourceSector: Telecommunications

Sales Growth

Net sales for Q4 2024 increased by 2% year-over-year to SEK 72.9 billion, driven by a remarkable 54% growth in the North American market. Sales in Europe and Latin America also saw growth, while other regions experienced declines.

Gross Margin Improvement

Adjusted gross income rose to SEK 33.7 billion, with the adjusted gross margin reaching 46.3%, up from 41.1% in Q4 2023. This improvement was attributed to supply chain efficiency measures, commercial discipline, and a favorable market mix.

Profitability and Cash Flow

Adjusted EBITA for Q4 2024 was SEK 10.2 billion with a margin of 14.1%, benefiting from higher gross income and cost management actions. Net income increased to SEK 4.9 billion, and free cash flow before M&A reached SEK 15.8 billion, supported by earnings growth and improved working capital.

Full-Year Performance

For the full year 2024, Telefon AB L.M.Ericsson reported a 5% decline in net sales to SEK 247.9 billion, impacted by a 6% decrease in Networks sales. Despite this, adjusted gross income increased to SEK 111.4 billion, and free cash flow before M&A surged to SEK 40.0 billion. The company proposed a dividend of SEK 2.85 per share for 2024.

Summarized from source with an LLMView Source

Key figures

2.39%1Y

39.6%3Y

-14.2%5Y

Performance

32.9%1Y

28.8%3Y

30.2%5Y

Volatility