Nokia today revised its full-year 2025 financial guidance, lowering its comparable operating profit outlook due to unfavorable currency movements and tariff-related headwinds.
The telecom equipment company now expects operating profit to range between EUR 1.6 billion and EUR 2.1 billion, down from its previous forecast of EUR 1.9 billion to EUR 2.4 billion issued in January.
Despite stable performance in its underlying business during the first half of the year, Nokia cited external factors beyond its control — primarily currency depreciation and trade tariffs — as the rationale for the revision. The updated guidance assumes a EUR:USD exchange rate of 1.17, compared to 1.04 used in its earlier projections.
The weakening of the U.S. dollar is expected to result in an overall negative impact of approximately EUR 230 million, including EUR 140 million in operational effects and EUR 90 million in non-cash losses from venture fund currency revaluations. Additionally, the current tariff landscape is forecasted to reduce full-year operating profit by EUR 50 million to EUR 80 million.
Nokia’s guidance for free cash flow conversion remains unchanged at 50 percent to 80 percent of comparable operating profit.
Based on preliminary results for the second quarter of 2025, Nokia expects to report net sales of around EUR 4.55 billion and a comparable operating profit of EUR 300 million. The quarterly profit includes a EUR 50 million negative impact from its venture funds, mainly due to currency movements.
Nokia will announce its full Q2 and H1 2025 results on Thursday, 24 July 2025.
TelecomLead.com News Desk
