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HELSINKI - Nokia Oyj (HEL:HE:NOKIA) lowered its full-year 2025 comparable operating profit forecast to €1.6-2.1 billion from the previous €1.9-2.4 billion, citing negative impacts from the weakening U.S. dollar and tariffs.
The Finnish telecommunications equipment maker said the currency fluctuations, particularly the weakening dollar, are expected to have a €230 million negative impact on its operating profit. This includes a €140 million operational effect and a €90 million non-cash negative valuation change in venture fund investments.
Additionally, tariff-related negative impacts on full-year operating profit are estimated at €50-80 million.
Nokia’s revised outlook is based on an exchange rate of €1 = $1.17, compared to the €1 = $1.04 rate used in January when the company initially provided its 2025 guidance.
Despite adjusting its profit outlook, Nokia maintained its free cash flow forecast at 50-80% of comparable operating profit.
Based on preliminary figures for the second quarter of 2025, Nokia expects revenue of approximately €4.55 billion and comparable operating profit of €300 million. The quarterly comparable operating profit was affected by a €50 million negative valuation change in venture fund investments, primarily related to currency fluctuations.
Nokia said its core business performed as expected in the first half of the year, but the company deemed it necessary to lower its profit outlook due to external uncertainties that emerged after its first-quarter earnings release.
The company will publish its complete second-quarter results and half-year report on Thursday, July 24, 2025, according to the press release statement.
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