Telefonaktiebolaget LM Ericsson Due Diligence

Run due diligence on Telefonaktiebolaget LM Ericsson: check compliance and get alerts when suppliers or ownership change.

Sweden · owned by Independent (Sweden) · www.ericsson.com · 17 vendors

Telefonaktiebolaget LM Ericsson is a Swedish multinational telecommunications company headquartered in Stockholm, Sweden, that provides mobile and fixed network infrastructure, software, and services to telecom operators and enterprises worldwide. The company is a global leader in 5G technology, offering radio access networks (RAN), core networks, and managed services. Ericsson also provides OSS/BSS solutions and enterprise networking products under its Cradlepoint and Vonage subsidiaries.

Resilience scores

Technology vendors

Services catalogue

12 services in catalogue across 4 categories; runs on 17 sub-vendors.

Insights

Last updated 2026-07-17 · revision 8

17 direct vendors, 201 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Compliance

14 in-scope frameworks identified; showing 3.

GDPR (source) — Evidence found

Evidence: https://www.ericsson.com/en/legal/privacy, https://www.ericsson.com/en/about-us/security, https://www.ericsson.com/en/legal/privacy/do-not-sell-or-share-my-information, https://www.ericsson.com/en/about-us/sustainability-and-corporate-responsibility/sustainability-report, https://www.imy.se/en/

CSRD (source) — No public evidence

Evidence: https://www.ericsson.com/en/about-us/sustainability-and-corporate-responsibility/sustainability-report, https://www.ericsson.com/en/investors/esg-resource-hub, https://www.ericsson.com/en/investors/esg-resource-hub/reporting-and-data, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32022L2464

Cyber Resilience Act (source) — No public evidence

Evidence: https://www.ericsson.com/en/about-us/security/psirt, https://www.ericsson.com/en/about-us/security/security-bulletins, https://www.ericsson.com/en/about-us/security/ericsson-product-security-and-vulnerability-disclosure-policy, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:L_202402847, https://www.enisa.europa.eu/topics/cyber-resilience-act

Financials

Three-year financials

Financial Resilience Score: 8/10

Ericsson demonstrated a strong financial recovery in 2025 with adjusted EBITA margin reaching 18.1% (top of the 15-18% long-term target), net income of SEK 28.7 billion (versus SEK 0.4 billion in 2024 and a SEK 26.1 billion loss in 2023), and free cash flow before M&A of SEK 26.8 billion. The balance sheet is robust with net cash of SEK 61.2 billion (up from SEK 37.8 billion), gross cash of SEK 93.9 billion against total borrowings of SEK 32.7 billion, and an improved equity ratio of 39.5%. Investment-grade credit ratings from S&P (BBB-) and Fitch (BBB-), with Moody's Ba1 outlook upgraded to positive, plus USD 2.5 billion in undrawn committed liquidity facilities, further support resilience. Structural strengths include technology leadership in 5G/RAN (~37% market share ex-China), 206 live 5G networks, and over 60,000 patents generating ~SEK 14.5 billion in annual IPR licensing revenue. The Board's proposed SEK 25 billion shareholder return (SEK 3.00/share dividend plus up to SEK 15 billion buyback) is the largest in company history, reflecting management confidence. Risks that temper the score include continued top-line contraction (reported sales -5% in 2025), high customer concentration (top 10 = 46% of sales, largest ~14%), unresolved U.S. DOJ investigation regarding Iraq conduct (2011-2019), multiple Anti-Terrorism Act civil lawsuits, ongoing SAMR China antitrust investigation, and Vonage acquisition write-downs (SEK ~46.6 billion in cumulative impairments). Pension deficit sensitivity and geopolitical/tariff exposure also weigh on the outlook.

Key strengths: Strong 2025 profitability recovery with adjusted EBITA margin at 18.1%, Robust balance sheet with SEK 61.2B net cash and 39.5% equity ratio, Investment-grade credit ratings (S&P BBB-, Fitch BBB-) with Moody's positive outlook, USD 2.5B undrawn committed liquidity facilities, Technology leadership in 5G/RAN with ~37% market share ex-China, 60,000+ patents generating SEK 14.5B annual IPR licensing revenue, Free cash flow of SEK 26.8B (11.3% of sales, within 9-12% target), Proposed record SEK 25B shareholder return (dividend + buyback), Successful cost reduction: ~5,000 headcount reduction in 2025

Risk factors: Continued revenue contraction (-5% reported in 2025, -6% in 2024), High customer concentration: top 10 = 46% of sales, largest ~14%, Ongoing U.S. DOJ investigation regarding Iraq conduct (2011-2019), Three pending U.S. Anti-Terrorism Act civil lawsuits, SAMR China antitrust patent-licensing investigation since 2019, Vonage acquisition cumulative impairments of ~SEK 46.6B, CFIUS National Security Agreement compliance obligations, Geopolitical/tariff exposure with concentrated component supply chain, Pension deficit sensitivity (SEK 18.6B net DBO recognized), Shareholder claims in Sweden from 93 non-Swedish funds re: 2019 Iraq disclosure, Sharp India revenue decline (SEK 31.2B in 2023 to SEK 12.3B in 2025)

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