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Ericsson’s Q2 Adjusted Operating Profit Beats Expectations

SWEDEN, JUL 15 – Ericsson's adjusted operating profit rose on 10% sales growth in the Americas and cost reductions despite a 6% overall sales decline and tariff-related margin pressures.

  • Ericsson reported a 2% sales growth in Q2 2025, with reported sales of SEK 56.1 billion, driven by the Americas and IPR licensing.
  • This sales growth followed structural cost reductions and efficiency measures amid currency headwinds and tariffs affecting profit margins.
  • The company reported its highest adjusted operating profit and EBITA margin in three years, driven by effective operational execution and sustained cost reduction efforts.
  • Net income increased to SEK 4.6 billion in Q2 2025, a significant improvement from the SEK-11.0 billion loss recorded the previous year. CEO Borje Ekholm highlighted that the company has made fundamental reductions in its cost structure.
  • Americas' growth continued while Europe stabilized, and Ericsson increased AI investments to accelerate innovation and efficiencies going forward.
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Lowered and lower-than-expected revenues perpetuate. Moreover, the future prospects in a context characterized by uncertainty due to the duties and the holding of the global economy worry

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advanced-television.com broke the news in on Tuesday, July 15, 2025.
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