ENT generated 165.6 million euros in revenue from sales in the first nine months of 2025

The company Ericsson Nikola Tesla (ENT) has announced its business results for the third quarter of this year. According to their statement, sales revenue amounted to 165.6 million euros, while the company achieved a net profit of 13.5 million euros. The results were commented on by Gordana Kovačević, CEO of Ericsson Nikola Tesla, and we present her comment in full.

– In the first nine months of 2025, Ericsson Nikola Tesla achieved stable business results despite challenges in the global and regional environment. Total sales revenue amounts to 165.6 million euros, which is a decrease of 1.5 percent compared to the same period last year due to lower sales in export markets, while the domestic market recorded growth, and sales of services to Ericsson remained stable. Business activities took place in a dynamic market environment characterized by the accelerated application of new technologies, increased demand for digital services, and the need for greater efficiency in business processes. The company’s focus has been on strengthening strategic partnerships, developing 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 technology partner for domestic and regional operators, participating in network modernization projects, digital transformation of the public sector, and the development of advanced solutions based on artificial intelligence and automation. Sales in the domestic market are growing thanks to digital transformation projects in the public sector and modernization of mobile network infrastructure. Telecom operators in Croatia continue to invest in 5G infrastructure, digital services, and optics, aiming to strengthen network capacities and improve customer experience. In the Digital Society segment, during the third quarter, we signed a number of contracts with key institutions, such as the Ministry of Justice, Administration and Digital Transformation, the State Geodetic Administration, and the Ministry of Labor, Pension System, Family and Social Policy.

In export markets, we continued quality cooperation in the modernization and maintenance of mobile networks for operators HT Mostar, Crnogorski Telekom, Ipko Kosovo, and Telekom Kosovo. Revenues in this market segment recorded a decline primarily due to lower revenues in Kosovo, as we completed a major project at the end of last year to modernize the entire radio access network of Telekom Kosovo.

Sales of services to Ericsson remained stable, confirming the strategic importance of cooperation within the Ericsson Group. The Research and Development Center of Ericsson Nikola Tesla (ENT R&D) continues to play an important role in the development of advanced communication technologies and is positioned as one of the most successful in Ericsson’s global organization. During the third quarter of 2025, numerous projects in the area of 5G radio access network (RAN) and core network are developing according to plan, with a high level of quality and efficiency in delivery. It is particularly significant that ENT R&D has been selected as one of Ericsson’s preferred suppliers for the next three years in the area of software solutions development for 5G/6G RAN. Accordingly, new hiring is planned. Following technological trends, the Center continues with the competency building program in the field of artificial intelligence (AI), aimed at improving the quality and productivity of software development. This initiative further strengthens the capacities of ENT R&D for future challenges in developing 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 on the regular market of the Zagreb Stock Exchange.

When discussing financial indicators, in the first nine months, a gross profit of 20.9 million euros was achieved, representing a decrease of 6.1 percent compared to the same period last year, primarily due to higher material costs and employee costs, as well as activities related to digitalization and business optimization. The gross margin is 12.6 percent (nine months 2024: 13.3 percent). Operating profit amounts to 16.0 million euros, a decrease of 10.7 percent, with an operating margin of 9.7 percent (nine months 2024: 10.7 percent). Despite lower operating profit, net profit recorded an increase of 13.7 percent, amounting to 13.5 million euros as a result of lower income tax. Financial stability is confirmed by a solid balance sheet, with equity accounting for 42.3 percent of total assets. Cash and cash equivalents, including short-term financial assets, amount to 53.5 million euros, representing 33.7 percent of total assets. A positive cash flow from operating activities of 13.7 million euros was achieved, due to intensified activities related to the collection of receivables from customers and ensuring current liquidity.

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

After nearly 21 years at the helm of the company, I would like to thank all customers and partners for their long-standing trust and cooperation, and my colleagues for their dedication and support in the development and building of the company as it is today. It has been an honor and a privilege to work at Ericsson Nikola Tesla. I am proud of all the achievements realized by the ENT team, our technological leadership, innovation, and numerous projects that we have successfully completed together with our customers and partners, as well as the transformations we have undertaken for the long-term, sustainable future of the company.

The CEO of ENT from November 1 will be Mr. Siniša Krajnović, a leader with extensive professional experience in management and technology who began his career at ENT and spent the majority of his professional journey at Ericsson holding a number of senior management positions. I am pleased that a person with such extensive professional experience, expertise, and knowledge is taking over the company. I wish Siniša, the members of the Management Board and the executive management of the company, as well as all colleagues, much success in future activities – concluded Gordana Kovačević.