Nucor earnings beat by $0.08, revenue fell short of estimates
HELSINKI - Nokia (HE:NOKIA) Corporation has released its interim report for the first quarter of 2025, revealing a varied performance across its business segments and the completion of the Infinera (NASDAQ:INFN) acquisition. The company’s net sales saw a slight decline of 1% year-over-year, while comparable operating margin decreased to 3.6%.
The Network Infrastructure segment experienced an 11% growth in net sales on a constant currency and portfolio basis, driven by strong demand from hyperscalers. The recently acquired Infinera contributed to this success with a 15% increase in net sales and several significant design wins. The integration of Infinera is progressing, with many portfolio decisions already implemented.
Mobile Networks reported a 2% growth in sales, but a substantial one-time contract settlement charge of EUR 120 million negatively impacted its profitability. Despite this, the segment showed signs of stabilization, including a notable contract extension with T-Mobile US (NASDAQ:TMUS).
Cloud and Network Services grew by 8%, with Nokia continuing to secure demand for its 5G Core offerings, winning additional footprint at AT&T (NYSE:T), Boost Mobile, Ooredoo Qatar, and Telefónica.
In contrast, Nokia Technologies faced a challenging comparison with the previous year, resulting in a 52% decrease in net sales. However, the company signed further deals in Q1, increasing the contracted annual net sales run-rate to approximately EUR 1.4 billion.
Nokia’s President and CEO, Justin Hotard, acknowledged the mixed financial performance, attributing the net sales decline to a tough prior year comparison in Nokia Technologies and the one-time charge in Mobile Networks. Despite these challenges, he expressed confidence in the company’s potential for long-term value creation and its role as a trusted partner in mobile and fixed networks.
The company’s outlook for the full year of 2025 remains unchanged, with a comparable operating profit guidance of between EUR 1.9 billion and EUR 2.4 billion and a free cash flow conversion from comparable operating profit of between 50% and 80%.
This summary of Nokia’s Q1 2025 performance is based on the interim report published by the company, which provides a detailed financial analysis and outlook for investors. The complete financial report is available on Nokia’s website, along with a video interview summarizing the key points of the Q1 results.
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