Ericsson concluded 2024 on a robust note, achieving significant milestones across its operational and financial metrics under the leadership of President and CEO, Börje Ekholm.
Q4 Results
Börje Ekholm, reflecting on the fourth quarter performance, stated, “Q4 marks a strong end to 2024 for Ericsson. We progressed well against our strategic plan and generated strong free cash flow.” The company reported sales of SEK 72.9 billion, with a reported gross income of SEK 32.7 billion and a gross margin of 44.9%. Net income for the quarter stood at SEK 4.9 billion.
According to Ekholm, a notable achievement was the signing of an open programmable network deal with MASORANGE, marking a significant milestone for Ericsson in Europe.
Ekholm highlighted, “We see further signs that the overall RAN market is now stabilizing, with strong growth in North America supporting a return to ‘networks’ sales growth in Q4.” Operational excellence initiatives contributed to a robust adjusted Group gross margin of 46.3% in the quarter, underscoring Ericsson’s disciplined commercial approach and supply chain efficiency efforts.
Q4 marks a strong end to 2024 for Ericsson. We progressed well against our strategic plan and generated strong free cash flow.
Full-Year 2024 Results
For the full year 2024, Ericsson reported sales of SEK 247.9 billion, reflecting strong growth in North America, where reported Q4 2024 sales increased by 53% (SEK 22 billion). This growth was driven by contract wins, increased network investments by major customers, and strong year-end software demand. Reported gross income for the whole year reached SEK 109.4 billion, while adjusted gross income increased to SEK 111.4 billion, with contributions from all segments supporting financial resilience despite challenges in certain market areas.
However, the Middle East and Africa (MEA) market areas faced declines, with MEA networks sales from January to December 2024 decreasing by -13% year-over-year (SEK 20.8 billion). Economic headwinds and currency devaluations in Africa impacted investment levels, while in the Middle East, reduced investments followed an accelerated 5G rollout in 2023. Cloud software and services sales were also affected by the timing of project deliverables.
Notably, Ericsson’s net cash stands at SEK 37.8 billion at year-end 2024.
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2025 Outlook
Looking ahead to 2025, Ekholm outlined Ericsson’s strategic priorities, stating, “In ‘networks,’ we will continue to benefit from our product leadership position, with the best performance and energy efficiency in the industry.” The company remains committed to enhancing commercial performance in the ‘enterprise’ segment, particularly in terms of mission-critical and enterprise private networks.
[Ericsson is] aiming to position high-performing, programmable networks at the forefront of digitalization efforts in enterprise and society.
Ericsson’s performance in Q4 2024 and throughout the fiscal year underscores its resilience and strategic focus amid evolving market conditions. The company’s strong cash flow generation and strategic initiatives position it well for future growth and innovation in telecommunications and digital infrastructure.
Q4 2024 Ericsson News:
Revolutionizing Cloud Gaming: e& UAE and Ericsson Roll Out L4S Tech
Ericsson Pre-Releases Microwave Outlook Report 2024
A GCC-First Upgrade: Vodafone Oman Automates Core Network with Ericsson
du and Ericsson Ignite UAE’s 5G Evolution
