On Thursday, April 16, 2026, Telefonaktiebolaget LM Ericsson announced that its Board of Directors has resolved to initiate a share buyback program for the company’s ordinary Class B shares. The program, which utilizes authorization granted at the March 31, 2026 Annual General Meeting (AGM), carries a maximum consideration of SEK 15,000,000,000.
The buyback will be conducted on Nasdaq Stockholm and managed by an independent financial investment firm. This firm will make trading decisions regarding the timing of repurchases independently of Ericsson to ensure compliance with European Union market abuse regulations and safe harbor provisions.
AGM Authorizations and Dividend Strategy
The launch of this program follows the resolutions passed at Ericsson’s 2026 AGM, where shareholders approved a total dividend of SEK 3.00 per share and authorized the board to repurchase up to 10 percent of the company’s total issued shares. This buyback initiative is a core component of the company’s 2026 capital allocation strategy, which aims to balance direct shareholder returns with long-term incentive obligations.
Ericsson’s current share capital consists of 3,371,351,735 total shares, divided into 261,755,983 Class A shares and 3,109,595,752 Class B shares. As of the program’s announcement on April 16, the company held 38,002,276 Class B shares in treasury.
Program Specifications and Regulatory Constraints
The execution of the buyback is subject to strict regulatory and logistical parameters:
- Acquisition Window: Repurchases are expected to begin no earlier than April 23, 2026, and must conclude by March 31, 2027.
- Holding Limit: Total treasury holdings may not exceed 10 percent of the total number of issued shares at any given time.
- Pricing: Shares may only be purchased within the prevailing price interval registered on Nasdaq Stockholm (between the highest bid and lowest ask).
- Management: The program is manage by a third-party firm to comply with the Nordic Main Market Rulebook and EU Regulation No 596/2014 (MAR).
Capital Structure and Incentives
Ericsson stated that the primary purpose of the program is to distribute surplus liquidity and optimize the company’s capital structure by reducing its share capital. Beyond capital adjustment, a portion of the repurchased shares will be used to fulfill obligations under Ericsson’s share-related incentive programs, such as the Long-Term Variable Compensation Program (LTV) 2026.
The Board of Directors has indicated its intention to propose the cancellation of all repurchased shares—excluding those required for incentive programs—at the 2027 Annual General Meeting. This reduction in the total number of outstanding shares is designed to increase the relative ownership stake of remaining shareholders and potentially enhance earnings per share (EPS).
\2027 Annual General Meeting
The buyback program will run concurrently with Ericsson’s scheduled dividend payments. The first dividend installment of SEK 1.50 was paid on April 9, 2026, with the second installment scheduled for October 2, 2026. Following the conclusion of the buyback window in March 2027, the Board will present its final report on the program’s results and the proposed share cancellations to the 2027 AGM. Investors can monitor the progress of the buyback through weekly transaction reports published on the Nasdaq Stockholm website and Ericsson’s Investor Relations portal.
