North American growth boosts Ericsson’s Q4 2024 performance as it strengthens its position in programmable and private networks.
.jpg "Growth in Networks Fuels Ericsson’s Q4") |
| Ericsson’s 2024 results highlight strong cash flow, strategic advancements, and leadership in 5G and enterprise networks. Image/ Illustration: ChicHue |
Stockholm, Sweden — Jan 24, 2025:
Ericsson has delivered a robust performance in its fourth-quarter and full-year 2024 results, highlighting progress in strategic priorities and operational efficiency. With growth in Networks sales and advancements in programmable networks, the company ended the year on a positive note.
Throughout 2024, Ericsson reinforced its leadership in programmable networks with the launch of 5G Advanced software in October. The company saw growing interest in network APIs, focusing on applications for financial fraud protection and Quality on Demand. A new patent licensing agreement signed in Q4 contributed to the year’s strong intellectual property revenue.
Ericsson’s sales for the fourth quarter grew by 2% year-on-year (YoY), reaching SEK 72.9 billion. North America led the performance with a 54% increase, while Europe and Latin America also posted gains. Adjusted gross income climbed to SEK 33.7 billion, supported by a Networks gross margin improvement to 49.1%.
The company’s adjusted gross margin rose to 46.3%, driven by supply chain efficiency, market mix, and disciplined commercial practices. Adjusted EBITA reached SEK 10.2 billion, representing a margin of 14.1%, as higher gross income offset increased bonus accruals. Net income for the quarter was SEK 4.9 billion, with diluted earnings per share (EPS) of SEK 1.44.
Free cash flow before mergers and acquisitions (M&A) was a strong SEK 15.8 billion, reflecting earnings growth and better working capital management.
For the full year, sales totaled SEK 247.9 billion, a 5% decline compared to 2023. Adjusted gross income increased to SEK 111.4 billion, with contributions from all segments. Adjusted EBITA improved to SEK 27.2 billion, achieving an 11.0% margin.
Net income rebounded to SEK 0.4 billion, a marked improvement from the SEK 26.1 billion loss recorded in 2023. Free cash flow before M&A surged to SEK 40.0 billion, supported by structural supply chain improvements and favorable market conditions.
Ericsson closed the year with a net cash position of SEK 37.8 billion, up significantly from SEK 7.8 billion at the end of 2023. The Board of Directors proposed a dividend of SEK 2.85 per share for 2024, an increase from the previous year’s SEK 2.70.
Börje Ekholm, President and CEO, highlighted the company’s achievements; “Q4 marks a strong end to 2024 for Ericsson. We’ve made meaningful progress in our strategic initiatives, particularly in programmable networks, where customers increasingly recognize the value of mobile network APIs.
The RAN market is showing signs of stabilization, with North America driving a return to Networks sales growth in the fourth quarter. While we have not yet reached our long-term EBITA targets, the strides we’ve made position us well for the future.”
Ericsson aims to maintain its leadership in Networks by focusing on industry-leading performance and energy efficiency. In Enterprise, the company will prioritize stabilizing its portfolio while driving growth in mission-critical and private networks. The company remains committed to advancing digital transformation across enterprises and society through high-performing, programmable networks.