Ericsson, a prominent Swedish manufacturer of telecommunications network equipment, revealed plans on Friday to allocate 15 billion Swedish crowns ($1.7 billion) toward a share buyback program. This announcement followed the company’s robust quarterly financial results that exceeded market expectations.
Specifically, the firm reported adjusted earnings before interest and taxes of 12.26 billion crowns for the fourth quarter of 2025, surpassing the 10.09 billion crown average anticipated by analysts in a recent polling by Infront.
As one of the two primary Western suppliers in this industry alongside Nokia, Ericsson has rapidly adapted to import tariffs imposed by the United States last year. Furthermore, it continues to implement an extensive restructuring initiative aiming to mitigate the impact of slower investment cycles in 5G technologies. Earlier this month, the company detailed plans to reduce its Swedish workforce by 1,600 positions to bolster operational efficiency.
The newly proposed buyback program, Ericsson’s inaugural one, is slated to commence following the publication of the first-quarter report and is scheduled to continue through 2027. Complementing this move, the company increased its annual dividend per share from 2.85 crowns to 3 crowns.
This decision to initiate share repurchases is supported by a significantly enhanced cash position, fueled by cost containment measures and the disposal of its U.S.-based Iconectiv business unit.
Net sales for the fourth quarter reached 69.3 billion crowns, outperforming the 66.6 billion crown consensus among analysts. Growth was driven by stronger demand in Europe, the Middle East, and Africa; North American sales held steady.
The potential for Ericsson and Nokia to regain market share in Europe has been accentuated by the European Commission's recent proposal to phase out suppliers deemed high risk in critical sectors.
In an interview, Ericsson’s Chief Financial Officer Lars Sandström remarked that it was prematurely to quantify the impact of these regulatory proposals on market dynamics, noting that such changes typically unfold over extended periods. However, he affirmed the company is prepared to capitalize on any arising opportunities within this evolving regulatory landscape.