Ericsson Plans Strategic Share Reallocation to Strengthen Financial Structure
Stockholm, Monday, 19 May 2025.
Ericsson is set to strategically reallocate shares under a new mandate, enabling up to 60% of vested shares to be sold to cover tax and compensation costs, potentially impacting stakeholders.
Strategic Share Management Details
Following the authorization granted at its annual general meeting on March 25, 2025, Ericsson will begin transferring shares on Nasdaq Stockholm starting May 19, 2025 [1]. The telecommunications giant currently holds 38,390,417 shares of series B, with a maximum transfer limit of 368,692 shares established for this initiative [2]. This strategic move comes as Ericsson demonstrates strong financial performance, having reported a 3% year-over-year revenue increase to SEK 55 billion in Q1 2025, with adjusted gross margins improving to 48.5% [3].
Financial Performance Context
The share reallocation strategy is being implemented during a period of significant market strength for Ericsson, particularly in North America, where the company has achieved a remarkable 20% surge in sales [3][4]. The timing aligns with the company’s improved market position, as evidenced by adjusted core earnings jumping 44 percent year-over-year to SEK 6.2 billion in Q1 2025 [4]. The company’s Networks segment has shown particular resilience, with revenue growing by 6% to SEK 36 billion [3].
Market Implications and Future Outlook
Despite broader market challenges, including tariff-related pressures reducing margins by approximately one percentage point, Ericsson’s stock has demonstrated resilience with a 3% year-to-date increase [4]. Looking ahead to Q2 2025, the company projects gross margins between 48% and 50%, with revenues from Networks and Cloud Software and Services expected to follow typical seasonal patterns [3]. The share transfer program will remain active until the 2026 annual general meeting [1], providing Ericsson with extended flexibility in managing its financial obligations and compensation structures.