Nokia Lowers 2025 Operating Profit Guidance

Nokia lowered its 2025 operating profit outlook range in a preliminary Q2 results announcement. The vendor is blaming increased currency and tariff headwinds outside of its control since issuing the guidance in January.

Ahead of its second-quarter earnings announcement due today, the Finnish vendor stated it felt it was prudent at this point to lower its outlook from a range of €1.9 billion to €2.4 billion to €1.6 billion to €2.1 billion. Nokia explained that since providing the guidance on 30 January, a weaker US dollar was causing a negative impact of around €140 million operationally and €90 million for non-cash venture fund currency revaluations.

In addition, the current landscape caused by US President Donald Trump’s tariffs means it expects a hit of around €50 million to €80 million on operating profit. Its guidance for free cash flow conversion from comparable operating profit remains at 50% to 80%. The change to its outlook represents one of the first major moves made by CEO Justin Hotard, who replaced Pekka Lundmark in April.

Hotard said in April he would absolutely entertain increasing Nokia’s manufacturing in the US to better deal with the tariff landscape. Based on preliminary numbers, Nokia added that it expects to report net sales of €4.6 billion, a 2% increase year-on-year. Operating profit is expected to show a decline to €300 million from €423 million.