Ericsson reports fourth quarter results and full-year results 2024

Strategic Highlights - The company continues to deliver on its strategic and operational priorities, with a strong focus on programmable networks and differentiated performance [1] - Momentum around programmable networks is building, with customers increasingly recognizing the benefits of making mobile networks accessible through APIs [3] - The company signed an open programmable network deal with MasOrange, marking a first for Europe [3] Financial Performance - Q4 2024 - Sales increased by 2% YoY, with 54% growth in the North America market area [6] - Adjusted gross income increased to SEK 33.7 billion, driven by strong expansion in Networks adjusted gross margin to 49.1% [6] - Adjusted EBITA was SEK 10.2 billion, with a 14.1% margin, benefiting from higher gross income and cost actions [6] - Net income was SEK 4.9 billion, with diluted EPS of SEK 1.44 [6] - Free cash flow before M&A was SEK 15.8 billion, supported by earnings growth and improved working capital [6] Financial Performance - Full Year 2024 - Sales declined by 5%, impacted by a 6% sales decrease in Networks [6] - Adjusted gross income increased to SEK 111.4 billion, with an increased contribution from all segments [6] - Adjusted EBITA was SEK 27.2 billion, with an adjusted EBITA margin of 11.0% [6] - Net income was SEK 0.4 billion, with diluted EPS of SEK 0.01 [6] - Free cash flow before M&A was SEK 40.0 billion, benefiting from market mix and customer payment phasing [6] - Net cash at year-end 2024 was SEK 37.8 billion [6] Market and Operational Highlights - The overall RAN market is stabilizing, with strong growth in North America supporting a return to Networks sales growth in Q4 [4] - The company launched new 5G Advanced software in October, maintaining leadership in programmable networks [6] - Growing interest in network APIs, with financial fraud protection and Quality on Demand applications in focus [6] - A further patent licensing agreement was signed in Q4, with strong IPR revenue generation in 2024 [6] Future Outlook - In 2025, the company will continue to benefit from its product leadership position in Networks, with the best performance and energy efficiency in the industry [5] - The priority in Enterprise remains stabilizing the commercial performance in the current portfolio and driving growth in areas such as mission-critical and enterprise private networks [5] - The company is committed to putting high-performing, programmable, and differentiated networks at the center of the digitalization of enterprise and society [5] Financial Metrics - Q4 2024 vs. Q4 2023 - Net sales: SEK 72.9 billion vs. SEK 71.9 billion, a 1% increase [8] - Adjusted gross margin: 46.3% vs. 41.1% [8] - Adjusted EBITA: SEK 10.2 billion vs. SEK 8.2 billion, a 25% increase [8] - Net income: SEK 4.9 billion vs. SEK 3.4 billion, a 43% increase [8] - Free cash flow before M&A: SEK 15.8 billion vs. SEK 12.5 billion, a 27% increase [8] Financial Metrics - Full Year 2024 vs. Full Year 2023 - Net sales: SEK 247.9 billion vs. SEK 263.4 billion, a 6% decrease [8] - Adjusted gross margin: 44.9% vs. 39.6% [8] - Adjusted EBITA: SEK 27.2 billion vs. SEK 21.4 billion, a 27% increase [8] - Net income: SEK 0.4 billion vs. SEK -26.1 billion [8] - Free cash flow before M&A: SEK 40.0 billion vs. SEK -1.1 billion [8]