Ericsson Turns to Profit in 3Q24

Swedish vendor Ericsson reported a solid third-quarter business results. Despite the small YoY drop in sales, the company reported net profit, after losses in the same quarter last year and in the previous quarter.

Its net sales were SEK61.8 billion, a 4% drop YoY. Revenue, however, recorded QoQ growth of 3%. Gross margin grew to 45.6% from 38.4% in 3Q23. After a SEK30.5 billion loss in the same period last year, Ericsson reported a SEK3.9 billion net income.

“Q3 marks a period of laser-focus on the execution of our strategic plan. We see signs that the overall market is stabilizing with North America, as an early adopter market, returning to growth. While the market development is ultimately in the hands of our customers, we are working to deliver operational excellence regardless of market conditions. Our Q3 results demonstrate our progress, with strong gross margin expansion and free cash flow, benefiting from our commercial discipline and operational efficiency actions,“ said Börje Ekholm, President and CEO of Ericsson.

He added that the company expects network sales to stabilize during Q4, driven by continued good growth in North America. However, Ekholm emphasized that he anticipates further near-term sales pressure in the enterprise segment as the company focuses on profitable segments. Ekholm concluded that Ericsson launched a new private 5G enterprise product portfolio in Q3 to support performance improvement, which remains a key priority.