Ericsson’s profit beats market view, plans 15 billion krona buyback

[GDANSK, Poland] Swedish telecommunications gear maker Ericsson said it planned to return 15 billion Swedish kronor (S$2.1 billion) to investors, through share repurchases as it trounced quarterly earnings expectations on Friday (Jan 23).

The company reported an adjusted earnings before interest and taxes, excluding restructuring charges, of 12.3 billion kronor for the final quarter of 2025, above the 10.1 billion kronor average forecast in an Infront poll of analysts.

Ericsson, one of the two Western suppliers of network equipment alongside Nokia, moved quickly to adjust to US import tariffs last year, and has kept up a deep restructuring programme to counter weaker 5G investments. The Swedish group said earlier in January that it would cut 1,600 jobs at home to lift efficiency.

The proposed buyback, Ericsson’s first, is expected to begin after the publication of the Q1 2026 report and will run until 2027, it said.

It also lifted its annual dividend payout to three kronor a share from 2.85 kronor last year.

The decision to launch a share repurchase programme follows a sharp improvement in Ericsson’s cash position, as it benefitted from cost cuts and the sale of its US-based telecommunications company Iconectiv.

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The group’s net sales in the fourth quarter were 69.3 billion kronor, beating analysts’ 66.6 billion kronor estimate, as business in Europe, the Middle East and Africa grew, while North America remained stable. Ericsson and Nokia could regain ground in Europe after the European Commission proposed phasing out high-risk suppliers in critical sectors.

In a Reuters interview, Ericsson’s finance head Lars Sandstrom said it was “a bit early to say” how much the European Union proposals will change the market share, as these initiatives usually take time.

“If that comes into place, then of course we are ready to take that opportunity,” Sandstrom said. REUTERS