Swedish telecommunications giant Telefonaktiebolaget LM Ericsson has unveiled a significant capital return initiative, with its Board of Directors approving a share repurchase program of up to SEK 15 billion targeting the company’s Class B ordinary shares listed on Nasdaq Stockholm. The move is backed by the authorization granted at the Annual General Meeting held on March 31, 2026.

The program reflects a dual strategic objective: to return excess liquidity to shareholders while also fine-tuning Ericsson’s capital structure through a reduction in outstanding equity. In parallel, the repurchased shares are intended to support obligations arising from the company’s long-term, share-based incentive schemes for employees and executives.

Looking ahead, the Board has indicated its intention to propose at the 2027 Annual General Meeting that any repurchased shares not required for incentive commitments be cancelled. Such a step would further reduce share capital and potentially enhance shareholder value through a lower share base.

To ensure transparency and independence in execution, Ericsson will appoint an external financial institution to carry out the buyback operations. This intermediary will independently determine the timing and volume of purchases without direct influence from the company, aligning the program with prevailing market standards for governance and fairness.

The repurchases will take place on Nasdaq Stockholm and must comply with applicable regulatory frameworks, including the EU Market Abuse Regulation and associated safe harbour provisions governing share buybacks. Pricing will be restricted to the prevailing trading range at the time of execution, ensuring purchases occur within normal market conditions.

Under the program’s timeline, buybacks are expected to begin no earlier than April 23, 2026, and must conclude by March 31, 2027. Ericsson will also adhere to strict ownership limits, ensuring that treasury shares do not exceed 10% of the company’s total issued shares at any point during the program.

The scale of Ericsson’s share capital remains substantial, with more than 3.37 billion total shares in issue, comprising approximately 261.8 million Class A shares and just over 3.1 billion Class B shares. Prior to the announcement date, the company already held just over 38 million Class B shares in treasury.

The announcement does not constitute an offer or solicitation to buy or sell securities in any jurisdiction, underscoring its nature as a regulatory disclosure rather than a market invitation.