Stable results of the Ericsson Nikola Tesla Group in 2025

• The total sales revenue of the ENT Group in 2025 amounted to 238,6 million euros
• A dividend of  13,52 euros per share has been proposed

In his statement about the company’s business results, Siniša Krajnović, President of the Management Board of Ericsson Nikola Tesla, highlighted: “Despite demanding market conditions, the Ericsson Nikola Tesla Group achieved stable results in 2025 and remained focused on realizing its key strategic objectives. Total sales revenue amounted to EUR 238.6 million, down by 4.4% year-over-year, primarily due to lower activity in export markets and somewhat weaker demand in the domestic market. At the same time, revenue growth in the Services to Ericsson segment and the further strengthening of our role within the global organization mitigated short term negative trends and contributed to the overall stability of the business.

The strategic focus was directed toward three key areas: strengthening the leading position in mobile networks, growing and diversifying the business within the Digital Society segment, and achieving excellence in the Services to Ericsson segment (Research and Development, and Customer Solutions and Services). In a year marked by continued investment in 5G, increasing demand for digital solutions, and the need for greater operational efficiency, the Ericsson Nikola Tesla Group reaffirmed its position as a key technology partner to domestic and regional operators as well as institutional customers.

In the domestic market, significant projects were delivered in the telecommunications segment, focusing on network modernization and the expansion of network capacity. With Hrvatski Telekom, we continued our long standing partnership through the implementation of 4G/5G core network, modernization of the radio access network, and introduction of advanced solutions such as Ericsson Live RAN Insights. A new five year exclusive contract in the field of microwave technologies was also signed, further reaffirming the trust and long term cooperation between the two companies. Cooperation with A1 Hrvatska also continued successfully through the modernization of the convergent core network and the expansion of coverage and capacity of the 5G radio network, with a strong focus on optimizing network resources and increasing operational efficiency.

In 2025, the Digital Society segment was marked by the implementation of key projects for our public sector customers. New contracts with the Ministry of the Interior, the State Geodetic Administration, the Ministry of Justice, Public Administration and Digital Transformation, the Ministry of Tourism and Sport, and the Croatian Pension Insurance Institute reaffirmed the high level of expertise and quality that ENT provides in the development and implementation of complex ICT systems supporting the digital transformation of public services. In the period ahead, we expect growth in this segment, primarily driven by investment cycles related to the continuation of the European Union’s external border surveillance project and the digital transformation of both the public and private sectors.

In the export markets, successful cooperation continued with operators in Bosnia and Herzegovina, Montenegro, and Kosovo. Activities were focused on expanding 4G/5G radio infrastructure, modernizing transport and core networks, and implementing advanced solutions for quality monitoring and network performance optimization. The decline in revenue compared with the previous year was the result of the completion of a major mobile network modernization project for Telekom Kosovo at the end of 2024.
Sales revenue in the Services to Ericsson segment is growing, reaffirming the strategic importance of the ENT R&D Center within Ericsson’s global ecosystem and highlighting the value of our Services and Solutions Center. Throughout 2025, ENT R&D delivered quality results in the development of advanced RAN functionalities, further strengthening Ericsson’s global technology portfolio. It was once again recognized as one of Ericsson’s highest rated R&D software development suppliers and selected as a preferred partner for 5G/6G RAN software development. In line with this, we further strengthened our development capacities and attracted new experts. In addition to supporting our customers, the Services and Solutions Center experts worked on a wide range of projects for Ericsson customers throughout Europe and globally, providing professional services for solutions in the telecommunications segment.
Financial indicators confirm the stability of the business. Gross profit amounted to EUR 28.3 million, remaining almost at the level of the previous year, with the gross margin increasing to 11.9%, reflecting a favorable sales mix and activities focused on operational optimization and cost efficiency. Operating profit amounted to EUR 20.9 million, with an operating margin of 8.8%, while net profit increased to EUR 17.7 million due to lower tax expenses. Cash flow from operating activities amounted to EUR 17.5 million, and the balance sheet remains stable, with an equity ratio of 41%.

Intensive cooperation with academia continued, remaining essential for the development of the industry and for securing future ICT professionals. Inventorium Day 2025, held in November, once again confirmed the long standing partnership between Ericsson Nikola Tesla and the Faculty of Electrical Engineering and Computing, as well as their strong commitment to joint research and innovation. In the laboratory that brings together experts, professors, and students, projects are being developed in the fields of 5G, IoT, XR, data science, and artificial intelligence, along with concrete prototypes emerging from interdisciplinary cooperation.

Entering a new phase of development, the Ericsson Nikola Tesla Group will place an even stronger focus on reinforcing technological leadership and business excellence. The emphasis is on increasing innovation capacity, deepening cooperation with customers, partners, the academic community and relevant institutions, as well as continuously developing talent and organizational culture. In this context, we are working on preparing a new, long term ENT 2030 strategy which will define the Group’s direction for growth and transformation in the years ahead. As the largest ICT company in Croatia, we aim to further contribute to strengthening economic, technological, and scientific competitiveness.

I am confident that the initiatives we are implementing, as well as those planned within the 2030 strategy, together with contracted projects and new market opportunities, will ensure continued growth and further strengthen the company’s market position in the coming years.”, concluded Siniša Krajnović.

The Management Board and the Supervisory Board shall propose to the General Meeting of the Company the payment of a dividend in the amount of EUR 13.52 per share, as a confirmation of responsible approach toward shareholders.

Communications Ericsson Nikola Tesla