According to the company, despite some regional challenges, in Q4, Ericsson’s sales increased by 2%, compared to last year, with North America seeing a 54% increase.
As a result, this helped offset declines in other markets.
Meanwhile, overall sales for Q4 sat at SEK 72.9 billion, a slight increase from SEK 71.9 billion in Q4 2023.
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The telecoms giant also reported its adjusted gross margin increased from 41.1% last year, to 46.3%, respectively, attributing better supply chain management. Cost control adjusted gross income also increased, hitting SEK 33.7 billion, up from SEK 29.6 billion last year, it stated.
Meanwhile, Ericsson also reported a rise in free cash flow for the period, increasing from SEK 12.5 billion in 2023 to SEK 15.8 billion.
Net income also rose to SEK 4.9 billion, up from SEK 3.4 billion last year, the company revealed.
Additionally, for the full year, Ericsson's sales dropped by 5%, mainly due to a 6% decline in Networks sales.
However, the company saw strong profit growth, with adjusted EBITA increasing to SEK 27.2 billion, up from SEK 21.4 billion in 2023.
Commenting on the figures, Ericsson president and CEO, Börje Ekholm, said: “Q4 marks a strong end to 2024 for Ericsson. 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."
He added: "Progress on operational excellence continued, with commercial discipline and supply chain efficiency actions supporting a strong adjusted group gross margin of 46.3% in the quarter. We are not yet at our long-term EBITA goal, but we are progressing towards it, supported by our strategic actions.
“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.”
He concluded: “Our commitment remains to put high-performing, programmable and differentiated networks at the centre of the digitalisation of enterprise and society.”
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