Ericsson Nikola Tesla records growth in revenue, profitability and contracted business in the first half of 2026

• The business performance of the Ericsson Nikola Tesla Group in the first half of 2026 was marked by growth in revenue, profitability and contracted business. Sales revenue increased by 18.2 percent and amounted to EUR 130.9 million, while contracted business reached the value of EUR 166.4 million. Operating profit increased by 17.4% to EUR 13.4 million, while net profit amounted to EUR 11 million.
• Cash flow from operating activities was EUR 10.9 million, while maintaining a strong cash position and a stable balance sheet. Business growth was driven by strong results across all three business segments.

President of the Management Board of Ericsson Nikola Tesla, Siniša Krajnović, PhD, assessed that the achieved results confirm the strength of the portfolio, the expertise of employees and the successful execution of strategic initiatives, while maintaining a focus on the delivery of contracted business, the development of new business opportunities, the strengthening of technological competences and the creation of long-term value for customers, employees and shareholders.

Commenting on the results of the first half of the year, Siniša Krajnović said:

“The growth in revenue, profitability and contracted business achieved in the first half of 2026 confirms that we are successfully executing our strategy and strengthening the company’s market position. Business developments in the second quarter were comparable to the trends from the first quarter, with continued implementation of key strategic priorities focused on strengthening competitiveness, operational efficiency and technological excellence.

In the Telecom Solutions segment, we highlight a new multi-year contract with A1 Hrvatska, under which Ericsson Nikola Tesla remains the sole supplier of the radio part of the mobile network and provider of maintenance services for the next five-year period. Successful cooperation also continued on the modernization and expansion of network infrastructure with Hrvatski Telekom and operators in Bosnia and Herzegovina, Montenegro and Kosovo. The above projects confirm our technological leadership and further strengthening of partnerships with customers in the domestic and export markets.

In the Digital Society segment, we strengthened our market position by contracting and implementing digital transformation projects and developing solutions for critical communications and mission-critical systems. These projects are in the areas of healthcare, public administration, energy and public and national security. The new two-year contract for the support and development of the CEZIH system, as well as other projects related to public sector digitalization and the development of shared digital platforms, confirm our significant role in the digital transformation of public services. We are developing additional business opportunities in the area of mission-critical systems through cooperation with leading Croatian technology and scientific institutions, while increasingly positioning the company in the defense and national security segments.

The Software Engineering and Services segment represents the largest individual contribution to business performance and is one of the key drivers of the Group’s development. Our Research and Development Center retained its leading position among Ericsson’s development centers according to the overall assessment of quality, delivery performance and innovation. At the same time, we expanded development responsibilities in the area of radio access networks and strengthened competencies for the development of 5G and future 6G networks. In parallel, we are continuing the transformation of software development processes through the application of artificial intelligence, with a focus on introducing new AI tools and ways of working that further increase development efficiency and quality. Experts from the Customer Solutions and Services Center were engaged in projects related to the development, integration and optimization of advanced network solutions for Ericsson’s customers worldwide, including projects related to mission-critical infrastructure.

In line with the ENT2030 strategy, during the first half of the year we continued to invest in innovation and talent development through the ENT Innovation Challenge, the ENT AI Hackathon, and the 25th anniversary edition of the ENT Summer Camp, a summer program for students that connects academia and industry and contributes to the development of new ICT talents,” concluded Siniša Krajnović, PhD, President of the Management Board of ENT.

Communications Ericsson Nikola Tesla