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HELSINKI - Nokia Oyj (HE:NOKIA) announced robust financial results for the fourth quarter and the full year of 2024, with a notable increase in revenue and profitability driven by a recovery in demand. The company’s Q4 revenue grew by 9% year-over-year (reported +10%), attributed to strong performance across all business groups, particularly in Network Infrastructure and Technology.
The comparable gross margin for the quarter rose by 2.5 percentage points from the previous year to 47.2% (reported +2.8 percentage points at 46.1%), primarily due to improvements in the Technology business group. The comparable operating profit margin increased by 3.8 percentage points to 19.1% (reported +5.4 percentage points at 15.3%), mainly as a result of the enhanced gross margin and continued cost discipline.
Nokia’s Q4 comparable diluted earnings per share stood at €0.18, while the reported diluted EPS was €0.15. The free cash flow for the quarter was €0.05 billion, with a net cash position of €4.9 billion.
For the full year 2024, reported revenue and revenue adjusted for currency fluctuations both declined by 9%, with 7 percentage points of this decrease related to India. The comparable operating profit was €2.6 billion (reported €2.0 billion).
The full-year comparable diluted EPS was €0.39, and the reported diluted EPS was €0.23. The Board proposes a dividend of €0.14 per share for the fiscal year 2024.
Looking ahead to 2025, Nokia projects a comparable operating profit of €1.9–€2.4 billion and free cash flow to be 50–80% of the comparable operating profit, excluding the impact of acquisitions. This guidance reflects Nokia’s confidence in continued positive market development and a significant improvement in comparable operating profit, even with planned additional investments.
The company has also emphasized its strengthened position in the data center market, with key agreements secured for data center switching solutions and strategic partnerships announced with Microsoft (NASDAQ:MSFT), Nscale, Kyndryl, and Lenovo. Nokia aims to increase investments to expand into data center IP networking, targeting an additional €1 billion in revenue by 2028.
Nokia’s CEO Pekka Lundmark expressed confidence in the positive market trends continuing into 2025, with growth expected across various business groups and a firm commitment to maintaining a net cash position of 10–15% of annual revenue.
The financial results highlight Nokia’s ability to adapt and perform effectively across varying market conditions. The company’s focus remains on delivering high-performance, responsible, and secure network solutions to its global partners.
This article is based on a press release statement from Nokia Oyj.
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