Ericsson has reported its full-year results for 2024, showing that sales increased by 2 per cent year-on-year.
Operating profit excluding restructuring costs and impairments was at approximately £722 million (9.8 billion crowns), with adjusted EBITA margin at 14.1 per cent.
The company added that it is seeing a growing interest in network APIs, with financial fraud protection and quality on demand applications in focus. It also had a further patent licensing agreement signed in Q4, with strong IPR revenue generation in 2024.
Ericsson reported its adjusted gross margin at 46.3 per cent, an over 5 per cent increase compared to last year, driven by supply chain efficiency actions, commercial discipline and market mix.
Throughout the year, Ericsson also maintained its leadership in programmable networks, with new 5G advanced software launched in October.
Börje Ekholm, president and CEO, said, “We progressed well against our strategic plan and generated strong free cash flow. Momentum around programmable networks for differentiated performance continued to build, and customers increasingly recognise the benefits of making mobile networks accessible through APIs.
“We see further signs that the overall RAN market is now stabilising, with strong growth in North America supporting a return to networks sales growth in Q4. Progress on operational excellence continued, with commercial discipline and supply chain efficiency actions supporting a strong adjusted Group gross margin of 46.3 per cent in the [fourth] quarter. We are not yet at our long-term EBITA goal, but we are progressing towards it, supported by our strategic actions.”
Looking ahead to this year, Ekholm added, “For 2025, in Networks we will continue to benefit from our product leadership position, with the best performance and energy efficiency in the industry. In enterprise, our priority remains stabilising the commercial performance in the current portfolio and driving growth in areas such as mission critical and enterprise private networks. Our commitment remains to put high-performing, programmable and differentiated networks at the centre of the digitalisation of enterprise and society.”