European telecommunications giant Ericsson has posted bumper Q1 earnings per share (EPS) of 61% on the back of a surge in North American sales, where customers flocked to purchase ahead of tariff impacts.
Along with the North American market, Ericsson saw an increase in revenue from India, and along with the APAC region, the company is looking to offset a potential downturn in revenue from the United States.
Highlights include:
- EPS of 1.24 kronor (13c), a 61% YoY, a 61% increase
- Revenue of 55 billion kronor ($8.1 billion) was up 3%
- 48.5% adjusted gross margin and 12.6% adjusted EBITA margin
It also showed a quarterly turnaround year-on-year of 258% to hold net cash of $6.17 billion.
Ericsson CEO Börje Ekholm said solid momentum was sustained in Q1 despite challenging and fast-changing macro backdrops, and results highlighted the company’s competitiveness.
“We extended our technology leadership position further and are on track to offer a portfolio of 130 radios this year that support programmable networks.
“In Q1, we announced the first Asia Pacific programmable network, including deployment of 5G Advanced, with Telstra.”
That 5G Advanced product provides companies with private 5G networks. It has just been deployed at Newmont’s Tier 1 Cadia mining operation in NSW for teleremote surface mining bulldozing.
Due to the mine’s remote location, Newmont faced uneconomic WiFi challenges; now, the gold major can now connect its entire dozer fleet across a 2.5km span from a single radio base at up to 175mbps.
“Looking ahead, we remain confident of our strong position in Mobile Networks and expect Enterprise to stabilise during 2025,” Ekholm said.
“In the evolving global trade landscape and macro volatility, we continue to focus on controlling what we can control and delivering to our customers.
“We are not immune, but we are resilient, with well diversified production close to the customer and the flexibility to adapt to changing conditions over time.”
Shares in the $42.4 billion market-capped Ericsson (ERIC-B.ST) jumped 7.88% on the earnings release results.
