Ericsson Proposes Buyback After Q4 Earnings Surpass Estimates, Focuses on AI Growth
Ericsson AB announced its first buyback plan after Q4 earnings of 12.7 billion kronor exceeded expectations, despite a 5% drop in net sales. The company is focusing on growth in the artificial intelligence sector while projecting a flat market for radio access networks this year. CEO Borje Ekholm highlighted the importance of AI and connectivity for future growth and plans to propose a dividend of 3 kronor per share for 2025 alongside a buyback of up to 15 billion kronor.
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Ericsson AB projected future growth will stem from the artificial intelligence sector while the market for radio access networks is expected to remain flat this year. The company announced its first-ever buyback plan after Q4 earnings reached 12.7 billion kronor ($1.4 billion), exceeding analyst expectations of 10.5 billion kronor.
Despite a 5% drop in net sales to 69.3 billion kronor, Ericsson's restructuring efforts, including a global workforce reduction, contributed to improved margins. The company plans to propose a dividend of 3 kronor per share for 2025 and a buyback of up to 15 billion kronor.
CEO Borje Ekholm emphasized the importance of AI and connectivity in future growth, while also noting that enterprise and 'mission critical' markets are set to grow. Concurrently, Ericsson will enhance investments in defense.
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