A multinational telecommunications company, Ericsson has reported robust financial performance for the second quarter (Q2) of 2025, with strategic highlights pointing to solid operational execution and improved contributions across all segments.
Ericsson made this known in its Q2 2025 report yesterday.
The telecommunications company noted that it achieved a 48 per cent adjusted gross margin and a three-year high in adjusted Earnings before Interest, Taxes, and Amortisation (EBITA) margin.
It attributed its strong performance to operational excellence, which led to the significant increase in adjusted gross margin.
Financially, Ericsson’s sales rose by two per cent mainly due to growth in the American market and intellectual property rights (IPR) licensing.
“This growth was, however, partly offset by declines in other market areas, attributed to investments in India being on hold.
“Reported sales stood at SEK 56.1 billion (N8.90 trillion), compared to SEK 59.8 billion (N9.49 trillion) in the corresponding period of 2024, with a negative foreign exchange impact of SEK 4.7 billion (N746.69 billion).
“The adjusted gross income for the quarter increased to SEK 27.0 billion (N4.29 trillion) from SEK 26.3 billion (N 4.18 trillion) in Q2 2024,” Ericsson said.
The company attributed the rise to strong operational execution and higher IPR licensing revenues, which benefited from a settlement.
It added that the reported gross income was SEK 26.6 billion (N4.23 trillion), up from SEK 25.8 billion (approximately NGN4.10 trillion).
Ericsson noted that adjusted gross margin reached 48.0 per cent, an improvement from 43.9 per cent in Q2 2024, supported by improvements across all segments despite currency headwinds.
The company also reported that gross margin was 47.5 per cent, compared to 43.1 per cent previously.
“The company’s adjusted EBITA was reported at SEK 7.4 billion (N1.17 trillion), a significant increase from SEK 4.1 billion (N651.37 billion) in Q2 2024, with a margin of 13.2 per cent, up from 6.8 per cent.
“This improvement is attributed to higher gross income and lower operating expenses.
“The reported EBITA stood at SEK 6.8 billion (N1.08 trillion), with a 12.0 per cent margin, compared to SEK 2.4 billion (N381.29 billion) and a 4.1 per cent margin in Q2 2024,” Ericsson said.
The company noted that the net income for the quarter was SEK 4.6 billion (N730.80 billion), a substantial recovery from a net loss of SEK 11.0 billion (N1.75 trillion) in Q2 2024.
Ericsson said that diluted Earnings per share (EPS) were SEK 1.37 (approximately N217.65), compared to a negative SEK 3.34 (N530.64) in the previous year.
The company noted that its net income in 2024 was significantly impacted by SEK 11.4 billion (N1.81 trillion) impairment charge.
“Free cash flow before mergers and acquisitions (M and A) was SEK 2.6 billion (N413.06 billion), down from SEK 7.6 billion (approximately N1.21 trillion) in Q2 2024, “Ericsson said.