Fannie Mae, Freddie Mac shares tumble after conservatorship comments
HELSINKI - Nokia Oyj (HE:NOKIA) lowered its full-year 2025 comparable operating profit forecast on Thursday, citing significant currency fluctuations and tariff impacts that are beyond the company’s control.
The Finnish telecommunications equipment maker now expects comparable operating profit of €1.6-2.1 billion, down from its previous outlook of €1.9-2.4 billion. The company maintained its free cash flow guidance at 50-80% of comparable operating profit.
Nokia reported second-quarter comparable operating profit fell 29% to €301 million, with operating margin declining to 6.6% from 9.5% a year earlier. The company cited a €50 million negative impact from venture fund investments, including a €60 million negative valuation change due to currency fluctuations.
Comparable revenue decreased 1% year-on-year without currency effects. Network Infrastructure revenue grew 8%, while Mobile Networks revenue declined 13%, partly due to a one-time item in the previous year. Cloud and Network Services revenue increased 14%, and Technology revenue rose 3%.
"Compared to our expectations at the beginning of the year, currency fluctuations have a negative impact of approximately €230 million," said CEO Justin Hotard, who took the helm during the first quarter. "Current tariff levels are estimated to negatively impact our operating profit by €50-80 million."
The company’s board decided to distribute a dividend of €0.04 per share, with payment scheduled for August 7, 2025.
Nokia expects stronger results in the second half of the year, particularly in the fourth quarter, following typical seasonal patterns. The company will hold a Capital Markets Day in New York on November 19 to outline its strategy and value creation vision.
This article is based on a press release statement from Nokia.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.