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Telefonaktiebolaget L M Ericsson reported a 6% organic sales growth in Q4, driven by investments in 5G core and mission-critical networks, while EBITA margins expanded for the ninth consecutive quarter, nearing the long-term target of 15-18%. The company ended the year with a net cash position exceeding 61 billion krona.

Proposed actions include an increased dividend of 3 krona per share and a buyback program of up to 15 billion krona. Adjusted gross margin reached 48% due to cost reductions, although reported sales decreased by 5% impacted by negative currency effects.

The mobile networks demand environment appears flat, with intense competition in Latin America affecting sales stability. Elevated restructuring charges are anticipated for 2026 due to headcount reductions. Ericsson is focusing on strategic investments in defense and mission-critical networks while ensuring R&D efficiency amidst supply chain challenges.