ERICNasdaqRadio & Tv Broadcasting & Communications EquipmentFiscal year ends December 31Also trades as ERIXF
ERICSSON LM TELEPHONE CO
Financials through fiscal 2025, year ended Dec 31, 2025Last filing: 20-F on Mar 12, 2026
$10.34−0.21 (-1.99%)
Close on Oct 19, 2026
Margins
Share of revenue, fiscal years 2014 to 2025
Gross margin
47.6%+7.3 pts over 5 years
Operating margin
16.3%+4.4 pts over 5 years
Net margin
12.0%+4.5 pts over 5 years
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | -4.5% | -4.5% | +0.4% | -0.4% | |
| Gross profit | +3.0% | -0.2% | +3.8% | +2.8% | |
| Operating income | +795.8% | +12.7% | +6.8% | +5.9% | |
| Net income | +142040.0% | +14.9% | +10.2% | +7.7% | |
| EPS, diluted | +85000.0% | +14.8% | +10.1% | +7.5% | |
| Free cash flow | -31.0% | +4.7% | +4.4% | +9.5% | |
| Dividend per share | +5.6% | +4.5% | – | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 0.6% | 20.7% | 27.9% | |
| Return on assets | – | 6.4% | 9.9% | |
| Current ratio | 1.74 | 1.31 | 1.29 | |
| Debt to equity | 0.24 | 0.35 | 0.30 | |
| Net debt to EBITDA | -0.38× | -0.38× | -0.24× | |
| Interest coverage | 2.4× | 13.1× | 12.7× | |
| Inventory turnover | 5.1× | 4.7× | 4.9× | |
| Capex to revenue | 2.8% | 1.9% | 1.1% | |
| Diluted shares | 3.30B | 3.33B | 3.34B |
Where the cash went
Fiscal 2021 to 2025, five years combined
Ericsson Lm Telephone generated 156.32B SEK from operations and spent 59.59B SEK on capital expenditure, dividends and share buybacks. 28% of that went back into the business.
Generated
156.32B SEK
Used
59.59B SEK
Capital expenditure16.41B SEK28%Dividends43.19B SEK72%Share buybacks0 SEK0%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin12.0%
×Asset turnover0.83×
×Equity multiplier2.80×
=Return on equity, FY202527.9%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 12.0% | 0.83× | 2.80× | 27.9% |
| FY2024 | 0.0% | 0.84× | 3.05× | 0.0% |
| FY2023 | -10.0% | 0.81× | 2.77× | -22.7% |
| FY2022 | 6.9% | 0.83× | 2.69× | 15.4% |
| FY2021 | 9.8% | 0.81× | 2.95× | 23.2% |
| FY2020 | 7.5% | 0.85× | 3.24× | 20.7% |
| FY2019 | 1.0% | 0.83× | 3.22× | 2.6% |
| FY2018 | -3.1% | 0.80× | 2.87× | -7.1% |
| FY2017 | -15.9% | 0.76× | 2.35× | -28.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
7of 9 tests passed in fiscal 2025. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero28.43B SEK
- Cash generatingOperating cash flow above zero32.95B SEK
- Return on assets improvedROA up on the prior year0.0% → 9.7%
- Earnings backed by cashOperating cash flow above net income32.95B SEK vs 28.43B SEK
- Less leverageLong-term debt to assets fell10.9% → 10.4%
- Better liquidityCurrent ratio rose1.17 → 1.29
- No dilutionShare count did not rise3.34B → 3.34B
- Gross margin improvedGross margin up on the prior year44.12% → 47.60%
- More efficientAsset turnover rose0.83 → 0.81