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HELSINKI - Nokia (HE:NOKIA) Corp. has lowered its full-year 2025 comparable operating profit outlook to between €1.6 billion and €2.1 billion, down from its previous guidance of €1.9 billion to €2.4 billion, citing currency headwinds and tariff impacts.
The Finnish telecommunications equipment maker reported Thursday that second-quarter comparable net sales declined 1% year-over-year on a constant currency basis to €4.55 billion, while comparable operating profit fell 29% to €301 million.
Nokia’s comparable operating margin decreased to 6.6% from 9.5% a year earlier, impacted by a negative €50 million venture fund effect that included a €60 million currency revaluation loss.
The company’s performance varied across business segments. Network Infrastructure grew 8% and Cloud and Network Services increased 14%, while Mobile Networks declined 13% due to accelerated revenue recognition in the prior year and project timing in India.
"Currency has an approximately €230 million negative impact relative to our expectations at the start of the year with €90 million from non-cash venture fund currency revaluations. The current tariff levels are forecasted to impact operating profit by €50 million to €80 million," said President and CEO Justin Hotard in his first quarterly report since taking the helm.
Despite challenges, Nokia maintained a stable gross margin of 44.7% and generated €0.1 billion in free cash flow during the quarter, ending with a net cash balance of €2.9 billion.
The company also announced a dividend of €0.04 per share to be paid on August 7, following a previous distribution of the same amount in May.
According to the press release statement, Nokia expects a stronger second half performance, particularly in the fourth quarter, in line with normal seasonality.
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