Ericsson has reported a remarkable 61% jump in net income for the first quarter of 2025, ending at SEK 4.217 billion from the previous year’s SEK 2.613 billion. Its net sales also grew by 3% to reach SEK 55.025 billion. A significant growth in North American network sales, emphasizing pre-tariff acquisitions, fueled this rise, counterbalancing slumps in other regions.
However, alongside these achievements, Börje Ekholm, the president of Ericsson, faces uncertainty about his leadership. Despite substantial performance, his relationship with major shareholders, including Jacob Wallenberg and Fredrik Lundberg, appears strained. Swedish media reports highlight their dissatisfaction with Ekholm’s acquisition strategies, particularly his $6.2 billion purchase of Vonage in 2021.
On the enterprise front, Ericsson’s wireless segment experienced a 20% surge in growth, largely propelled by increased demand for wireless wide-area networks and private networks. Significant contracts with entities like Jaguar Land Rover and SailGP demonstrate the company’s strong foothold in manufacturing and public safety sectors.
Regionally, North America stood out, accounting for about a third of Ericsson’s total sales, which increased by 26% compared to the prior year. In contrast, sales declined in other regions, such as EMEA and Southeast Asia. Analysts suggest pre-tariff stockpiling by U.S. mobile industries might have contributed to the strong sales figures in North America.
Enterprise products saw a notable increase, with net sales up by 17%, highlighting results in the private 5G and neutral host solutions sectors. Åsa Tamsons, leading enterprise wireless solutions, remarked on LinkedIn how these offerings are transforming sectors like public safety and manufacturing.
Despite these gains, Ekholm faces potential departure amid shareholder dissatisfaction. Nonetheless, he pointed out at recent deals, such as those with Telstra for Asia-Pacific’s programmable networks and fraud detection partnerships with major U.S. carriers, reflecting his strategy’s success.
In closing, Ekholm expressed optimism about Ericsson’s capabilities to adapt and thrive, saying, “We continue to focus on controlling what we can control and delivering to our customers. We are not immune, but we are resilient.”