Ericsson Finished 2024 with a Strong Quarter

Ericsson rounded off 2024 with a strong final quarter. CEO Borje Ekholm pointed to a stabilizing RAN market, momentum around programmable networks, and growth in the US as reasons for optimism.

In an earnings statement, Ericsson reported net sales of SEK72.9 billion ($6.7 billion) compared with SEK71.9 billion in 4Q23.  Net income hit SEK4.9 billion, up from SEK3.4 billion. North America was a strong market, with sales up 54% to SEK22 billion, driven by contract wins, increased network investments, and strong year-end software demand. Europe and Latin America booked a more modest growth of 2% to SEK19.4 billion. The overall picture was offset by poor performance in Southeast Asia, Oceania, and India, with sales declining 28% to SEK8.4 billion.

Mobile network sales grew 4% to SEK46.8 billion, driven mainly by its North American business. Cloud Software and Services were broadly flat at SEK19.5 billion and Enterprise dropped 9% to SEK6.1 billion due to lower sales from its Global Communications Platform Ekholm said the company was progressing well against its strategic plan, adding hype around programmable networks continued to build and customers were increasingly recognising the benefits of making mobile networks accessible through APIs.

Looking ahead to 2025, Ekholm said the company would continue to benefit from its leadership position in networks, adding it is prioritizing commercial performance in the enterprise segment. “Our commitment remains to put high-performing, programmable, and differentiated networks at the center of the digitalization of enterprise and society,” he added.