Despite sales remaining weak, the turnaround was due to an absence of a large charge taken in the prior year, the telecoms giant revealed.
The company reported a net income of 4.6 billion Swedish kronor, compared to a loss of 11 billion kronor last year, which included an 11.4 billion kronor impairment charge.
Adjusted EBITA also rose to 7.4 billion kronor, up from 4.1 billion kronor last year, with the adjusted EBITA margin improving to 13.2% from 6.8%, respectively.
Strong operational performance resulted in a 48% adjusted gross margin and the highest adjusted EBITA margin in three years, Ericsson stated.
However, sales dropped 6% to 56.1 billion kronor from 59.8 billion kronor a year ago. Meanwhile, organic sales rose just 2%.
Looking ahead, Ericsson said “increased uncertainty remains on the outlook, both in terms of potential for further tariff changes as well as in the broader macroeconomic environment.”
Börje Ekholm, president and CEO, said: ”Our Q2 results demonstrate solid execution of our strategic and operational priorities. We achieved a three-year high in adjusted EBITA margin, supported by continued efficiency actions. We have structurally lowered our cost base and are strongly focused on delivering further efficiencies.
“It is encouraging that Americas’ growth continues, and that Europe has stabilised. Global fixed wireless access (FWA) customers have now surpassed 160 million and are driving significant network traffic. Penetration of 5G standalone is still limited but is needed to fully support AI use cases at the edge, requiring ultra-low latency and enhanced uplink performance.”
He continued: “Looking ahead, we are increasing AI investments, including in our Sweden AI factory consortium. AI is key to accelerating innovation, as well as driving internal operational efficiencies. The ecosystem for network APIs continues to grow, and Aduna expanded its Network API reach to all three major service providers in Japan.”
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