Ericsson Nikola Tesla (ERNT) Q3 2026 earnings summary

Executive summary

• Contracted business reached EUR 231.5 million, up from EUR 196.4 million in 9M 2025; sales revenue rose 23.3% to EUR 204.2 million.

• Operating profit increased 11.6% to EUR 17.9 million; net profit rose 9% to EUR 14.7 million, with operating cash flow of EUR 23.6 million.

• Revenue grew across all three market segments, with higher gross profit and margin alongside investments supporting future growth.

Financial highlights

• Gross profit rose 30.8% to EUR 27.4 million; gross margin increased to 13.4% from 12.6%, aided by a higher share of high-value business.

• Operating profit was EUR 17.9 million versus EUR 16.0 million; operating margin was 8.8%, down from 9.7% on higher sales, growth and talent-related costs.

• Profit before tax increased 9.5% to EUR 18.1 million; net profit rose 9% to EUR 14.7 million from EUR 13.5 million.

• Selling and administrative expenses were EUR 11.7 million, or 5.7% of revenue, versus EUR 9.3 million and 5.6% in 9M 2025; increases included AI and growth investments.

Outlook and guidance

• Higher contracted business provides visibility into future revenue; management cited continued demand for solutions and services.

• Q4 priorities are contract execution, developing new business opportunities, strengthening technological leadership and maintaining strong financial performance.

• Rising reference interest rates are expected to have a positive financial impact in the coming period, given the strong financial position and liquidity.