Stable business performance in the first nine months of 2025

• Sales revenue amounted to EUR 165.6 million, net profit amounted to EUR 13.5 million
• Continuation of strategic partnerships with the operators, as well as activities related to projects of digital transformation

In her statement about the company’s business results, Gordana Kovačević, President of Ericsson Nikola Tesla’s Management Board, highlighted: “In the first nine months of 2025, Ericsson Nikola Tesla achieved stable business results, despite challenging global and regional environment. The total sales revenue amounted to EUR 165.6 million, down by 1.5% year-over-year, due to lower sales in export markets, while the domestic market recorded growth, and services to Ericsson remained stable. Business activities took place in a dynamic market environment, characterized by accelerated use of new technologies, growth in demand for digital services and the need for an increased efficiency of business processes. The Company was focused on strengthening strategic partnerships, development of 5G and advanced ICT solutions, digital transformation of the public sector, and sustainable business.

Ericsson Nikola Tesla continues to play a key role as a technological partner to domestic and regional operators, by participating in the projects of network modernization, digital transformation of public sector and the development of advanced solutions based on artificial intelligence and automation. The sales in the domestic market recorded growth owing to digital transformation projects in the public sector and modernization of mobile network infrastructure.

Telekom operators in Croatia continue to invest in 5G infrastructure, digital services, and optics, aiming to strengthen network capacities and improve user experience. In the Digital Society segment, during Q3 we have signed many contracts with key institutions, such as the Ministry of Justice, Public Administration and Digital Transformation, State Geodetic Administration, and the Ministry of Labor, Pension System, Family and Social Policy.

In export markets, we have continued quality cooperation on mobile networks modernization and maintenance for the operators HT Mostar, Crnogorski Telekom, Ipko Kosovo, and Telekom Kosova. The sales revenue in this market segment declined primarily due to lower sales revenue in Kosovo, because at the end of 2024 we completed a large project of modernization of the overall radio access network of Telekom Kosova.

Sales of services to Ericsson remained stable, confirming the strategic importance of cooperation within the Ericsson Group. Research and Development Center of Ericsson Nikola Tesla (ENT R&D) continues to have an important role in the development of advanced communication technologies and is positioned as one of the most successful within Ericsson global organization. During Q3, 2025, many projects in 5G RAN and Core network are being developed as planned, with a high level of quality and efficiency of delivery. It is particularly significant that ENT R&D has been selected as one of Ericsson’s preferred suppliers for next three years in 5G/6G RAN software development. Accordingly, new hiring is planned. In line with technological trends, the Center continues its competence-building program in the field of artificial intelligence (AI) aimed at improving the quality and productivity of software development. This initiative additionally strengthens ENT R&D capacities for future challenges in the development of complex network solutions.

At the conference “IPO as an Opportunity for Long-Term Owners and Growth through the Capital Market”, Ericsson Nikola Tesla was awarded for the best compliance with the Corporate Governance Code in 2024 among companies listed on the Regular Market of the Zagreb Stock Exchange.

In terms of financial indicators, in the first nine months of 2025, gross profit amounted to EUR 20.9 million, down by 6.1% year-over-year, primarily as a result of increased material and employee costs, and activities aimed at digitalization and optimization of business operations. Gross margin was 12.6% (first nine months of 2024: 13.3%). Operating profit amounted to EUR 16.0 million, down by 10.7%, with the operating margin amounting to 9.7% (first nine months of 2024: 10.7%). Despite the lower operating profit, net profit increased by 13.7%, and amounted to EUR 13.5 million, as a result of lower income tax. Financial stability is confirmed by a solid balance sheet, with an equity ratio of 42.3%. Cash and cash equivalents, including the short-term financial assets, amounted to EUR 53.5 million, which accounts for 33.7% of the total assets. A positive cash flow from operating activities was generated in the amount of EUR 13.7 million, as a result of intensified activities related to collection of receivables from customers and ensuring current liquidity.

We have been working intensely to secure stable business performance by implementing the strategy focused on strengthening the leading position in mobile networks, growth in the Digital Society segment, excellence in Services and Research& Development (R&D). Our strategy is based on technological leadership, innovation, and the expertise of our professionals, as well as years of experience in implementing the most advanced technological solutions. In line with the global trends, we continue to invest in digital transformation, including the application of artificial intelligence and automation of business processes, cyber security, development of new products and services, and competencies of our employees. The focus is on further business diversification, cost efficiency and acquiring new markets and customers. Ericsson Nikola Tesla remains a reliable partner in digitalization of society and economy, with a clear vision of technological development and responsible business. I believe that the obligations contracted so far, as well as the intensive activities we have undertaken regarding the realization of new business opportunities, will contribute to quality business performance in the upcoming period.

After almost 21 years at the helm of the company, I would like to thank all the customers and partners for their long-standing trust and cooperation, and my colleagues for their dedication and support in shaping the company into the company that we have today. For me, it has been an honor and privilege to work in Ericsson Nikola Tesla. I am proud of all the achievements accomplished by our team, of our technology leadership, innovativeness, the numerous projects we have successfully delivered together with our customers and partners, and the transformations we have carried out to ensure the company’s long-term, sustainable future.

As of November 1, 2025, Mr. Siniša Krajnović will be the President of Ericsson Nikola Tesla’s Management Board. Mr. Krajnović is a leader with extensive professional experience in leadership and technology, who started his career in ENT, and spent most of his professional journey in Ericsson, holding various senior management positions. I am pleased that the company will be led by a person with such extensive professional experience, expertise and knowledge. I wish Siniša, members of the Management Board and Leadership Team, and all colleagues a continuous success in their future activities.”, concluded Gordana Kovačević.

Communications Ericsson Nikola Tesla