EricssonERIC B
Ericsson builds equipment and software for mobile networks, mainly radio base stations for 4G and 5G, and sells them to telecom operators around the world. On top of that come licence fees for its patents and a smaller enterprise business.
Ericsson had revenue of SEK 236.7bn in 2025. That is 1% more a year since 2019.
Network equipment is sold in large tenders that come in waves as operators change technology, so revenue swings. Patent licences bring a high margin and steadier income. The radio network market is broadly flat.
Latest report: January–September 2026
| Now | Year before | |
|---|---|---|
| Net sales | SEK 161.5bn | SEK 167.4bn |
| Gross margin | 46.7% | 47.8% |
| EBITA | SEK 17.3bn, 10.7% | SEK 28.9bn, 17.3%, incl. the iconectiv gain |
| Net income | SEK 10.8bn | SEK 20.1bn |
| Diluted earnings per share | SEK 3.24 | SEK 5.94 |
| Free cash flow before M&A | SEK 11.2bn | SEK 11.9bn |
| Organic growth, third quarter | 7% |
Source: Ericsson, Third quarter report 2026, 15 October 2026, p. 1. Interim reports are not filed in ESEF, so these figures are read by hand from the report.
Revenue from the group income statement in the annual report (ESEF). Growth is the average annual change.
Of every 100 in sales, 16 became operating profit in 2025. Over the period it has ranged from −8 to 16.
| Year | Revenue | Operating profit | Margin | Net profit | Operating cash flow | Cash conversion |
|---|---|---|---|---|---|---|
| 2019 | SEK 227.2bn | SEK 10.6bn | 4.6% | SEK 2.2bn | SEK 16.9bn | 759% |
| 2020 | SEK 232.4bn | SEK 27.8bn | 12.0% | SEK 17.5bn | SEK 28.9bn | 165% |
| 2021 | SEK 232.3bn | SEK 31.8bn | 13.7% | SEK 22.7bn | SEK 39.1bn | 172% |
| 2022 | SEK 271.5bn | SEK 27.0bn | 10.0% | SEK 18.7bn | SEK 30.9bn | 165% |
| 2023 | SEK 263.4bn | −SEK 20.3bn | −7.7% | −SEK 26.4bn | SEK 7.2bn | – |
| 2024 | SEK 247.9bn | SEK 4.3bn | 1.7% | SEK 20m | SEK 46.3bn | 231305% |
| 2025 | SEK 236.7bn | SEK 38.6bn | 16.3% | SEK 28.4bn | SEK 33.0bn | 116% |
On average, 38780% of profit arrived as cash over the period.
Operating margin = operating profit divided by revenue. Cash conversion = cash flow from operations divided by net profit.
Earnings per share went from SEK 0.67 in 2019 to SEK 8.53 in 2025. Dividends took 35% of owner earnings over the last 6 years.
| Year | Owner earnings | Dividends | EPS | DPS | Shares |
|---|---|---|---|---|---|
| 2019 | SEK 7.2bn | SEK 4.5bn | SEK 0.67 | SEK 1.34 | 3,318m |
| 2020 | SEK 21.2bn | SEK 6.0bn | SEK 5.26 | SEK 1.80 | 3,324m |
| 2021 | SEK 32.1bn | SEK 6.9bn | SEK 6.82 | SEK 2.07 | 3,328m |
| 2022 | SEK 22.1bn | SEK 8.4bn | SEK 5.62 | SEK 2.53 | 3,332m |
| 2023 | −SEK 1.1bn | SEK 9.1bn | −SEK 7.94 | SEK 2.73 | 3,331m |
| 2024 | SEK 40.1bn | SEK 9.2bn | – | – | 0m |
| 2025 | SEK 27.1bn | SEK 9.5bn | SEK 8.53 | SEK 2.86 | 3,333m |
The share count has been roughly unchanged.
Owner earnings = cash flow from operations, minus investment in tangible and intangible assets, minus lease repayments. Share count is derived as net profit divided by earnings per share.
Net cash of SEK 60.7bn.
Ericsson had net cash of SEK 60.7bn on 30 September 2026, on its own measure, which counts interest-bearing securities. Gross cash was SEK 98.0bn.
Competitive advantages, our assessment
Telecom operators, with a few large customers in North America carrying a lot of weight. The main competitors are Huawei, Nokia and Samsung, and in many countries it is a political decision which vendors are allowed in.
Return on capital employed = operating profit after 20.6% Swedish tax, divided by equity plus net debt at year end.
Today's price needs owner earnings to grow 0% a year for ten years. Revenue has grown 1% a year.
| Required return | Growth needed |
|---|---|
| 8% | −2% |
| 9% | 0% |
| 10% | 2% |
Market value SEK 350bn, enterprise value SEK 289bn. Base: owner earnings of SEK 22.0bn a year on average over the last three years, an owner earnings yield of 7.6%.
Reverse discounted cash flow. Enterprise value = market value plus net debt. The base is average owner earnings over the last three years. Required return 9%, 10 years, then 2.5% growth.
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Where every number comes from
| Item | Amount | Period | Source |
|---|---|---|---|
| Revenue | SEK 236.7bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:RevenueFromContractsWithCustomers |
| Operating profit | SEK 38.6bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:ProfitLossFromOperatingActivities |
| Net profit, owners | SEK 28.4bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:ProfitLossAttributableToOwnersOfParent |
| Cash flow from operations | SEK 33.0bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:CashFlowsFromUsedInOperatingActivities |
| Equity | SEK 109.5bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:EquityAttributableToOwnersOfParent |
| Cash | SEK 43.9bn | 2025-12-31 | Annual report 2025 (ESEF)ifrs-full:CashAndCashEquivalents |
| Net cash | SEK 60.7bn | 2026-09-30 | Third quarter report 2026, p. 7 |
| Gross cash | SEK 98.0bn | 2026-09-30 | Third quarter report 2026, p. 7 |
The figures come from the company's annual reports in the machine-readable ESEF format, via filings.xbrl.org and the Swedish financial regulator. The latest filing wins, so restated comparatives replace the originals. Anything not tagged in ESEF is given with its source and page.
General analysis and educational material, not personal investment advice and not a recommendation to buy or sell. The figures are mechanical and can be rebuilt from the company's public reports; the text is the author's judgement. Author's position in Ericsson: not disclosed. Data to 2025-12-31, price as of 2026-10-23.