Ericsson cuts its profit in Spain by 5.3% in 2025, to 24.5 million, despite raising its revenue by 8%

Ericsson Spain earns less in 2025 despite raising income, cuts dividends and faces a collective dismissal while anticipating a flat 2026 in mobile networks.

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Ericsson Spain obtained a net profit of 24.47 million euros in 2025, which implies a decrease of 5.26% compared to the 25.83 million euros registered the previous year, according to the accounts filed with the Mercantile Registry and consulted by Europa Press through Informa D&B.

In parallel, the Swedish group's Spanish subsidiary increased its turnover to 579.2 million euros in 2025, 7.62% more than the 538.17 million earned in 2024.

Of the total turnover, 243.77 million euros corresponded to sales, with an year-on-year increase of 13.2%, while the provision of services contributed 335.43 million euros, 3.9% more than in the previous fiscal year.

The net operating result (Ebit) of Ericsson Spain stood at 21.6 million euros, representing an increase of 8.22% compared to the 19.96 million euros obtained in 2024.

In this context, the company has proposed to allocate 24.47 million euros to dividend distribution from the 2025 accounts, an amount 5.17% lower than the 25.8 million euros distributed the previous year.

The company closed 2025 with a workforce of 2,261 employees. Personnel expenses amounted to 245.37 million euros, 1.8% less than in 2024.

Within this item, 9.9 million euros in compensation are accounted for, 57.85% below the 23.44 million euros of the previous fiscal year, while the "salaries, wages, and assimilated" category increased by 3.5%, to 182.29 million euros in 2025.

Layoffs at Ericsson Spain

On January 12, Ericsson Spain announced its intention to implement collective dismissals with the aim of gaining operational efficiency and maintaining its competitiveness in a complex context.

After the consultation period, a majority pre-agreement was reached on February 20 with the legal representation of the workforce, which reduced the final number of affected employees to 164.

Outlook for 2026

On the macroeconomic level, the company forecasts "moderate and sustained growth" for Spain, "better than the regional average over the coming quarters."

However, in the mobile networks segment, a practically flat market is anticipated for this year, while expansion is expected in enterprise networks and mission-critical infrastructures.

In recent years, major European operators have made significant investments in next-generation networks, with a particular focus on 5G and fiber optics.

However, that investment strategy has not translated, according to the company, into a "proportional" return, as the return on invested capital indicators remain low and are below the cost of capital.

"In this context of high investment intensity and growing leverage, European operators' room to continue increasing 'capex' is limited, and their investment decisions are increasingly conditioned by the need to control debt and maintain financial stability," it indicated.

Although the deployment of 5G in Spain, Ericsson commented, "is quite advanced, it is not yet complete, so operators will have to undertake additional investments, although smaller than in previous years."

Looking ahead to 2026, the multinational aims to maintain its benchmark position in efficient and high-performance solutions, with the goal of stabilizing its results and boosting the private and mission-critical networks business. Likewise, it reinforces its commitment to advanced networks and differentiated connectivity services as a lever for the digitalization of companies and society.

Risks and regulatory environment in 2026

The company has pointed out that its organic risks mainly stem from technological evolution, changes in the economic situation of its clients, and possible regulatory modifications.

It has also warned that recent geopolitical tensions impact both commercial activity and cybersecurity, as well as the volatility of raw materials, energy and transport costs, in addition to increasing the risk of supply chain disruptions.

For this reason, this year "will be key in Europe as regulatory frameworks of great importance will be debated, such as the Digital Networks Act (DNA) and the Cybersecurity Act (CSA)."

These regulatory changes, Ericsson Spain stressed, "will set the direction of the sector in the coming years." Therefore, the subsidiary is leading various initiatives to drive action at the European level, with the aim of implementing measures that guarantee the future success of digitalization in the region, favoring a "more favorable" regulatory framework and increasing attractiveness for investors.

The company has added that this year it will be necessary to follow "closely" the evolution of the agreements that are reached in matters of research, industrialization, and commercialization of technologies linked to current geopolitical movements.

In this regard, it considers the evolution of dual-use telecommunications technologies—civil, defense, and cybersecurity—to be key, "as strong growth is expected in these areas, predictably also conditioned by geopolitical tensions that will affect the markets."

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