Nokia Adjusts 2025 Profit Projections Amidst Financial Pressures

Author: Evelyn Baker Updated: 07-22-2025 04:34 PM

Nokia Adjusts Profit Guidance for 2025

Nokia Corporation (NYSE: NOK) has recently announced a significant revision to its operating profit outlook for 2025, leading to a decline in its share price. The company indicated that it is adjusting its full-year guidance due to currency fluctuations and tariff impacts that have surfaced since the beginning of the financial year.

New Operating Profit Expectations

The updated guidance now sets Nokia's comparable operating profit range between 1.6 billion euros and 2.1 billion euros, a notable downgrade from the previous estimate of 1.9 billion euros to 2.4 billion euros. This reduction comes despite the company reporting that its core business continues to perform adequately in the initial half of the year.

Impact of Currency Fluctuations

Nokia specified that it anticipates a potential negative impact of about 230 million euros arising from currency variations. This estimate includes 140 million euros due to operational factors and another 90 million euros attributed to non-cash currency adjustments within its venture funds.

Additional Challenges from Tariffs

Further compounding the situation is the expectation that the current tariff climate could diminish operating profits by an additional 50 to 80 million euros. As a response to these financial pressures, Nokia has cleverly adjusted its currency rate assumption, utilizing a EUR:USD exchange rate of 1.17, shifting from the earlier rate of 1.04 set in January.

Second Quarter Performance Expectations

In connection with these revisions, Nokia's preliminary outlook for its second-quarter financial results indicates anticipated net sales of approximately 4.55 billion euros, alongside a comparable operating profit of about 300 million euros. Notably, this figure integrates a negative impact of 50 million euros from the venture funds largely attributable to currency movements.

Looking Ahead

Nokia is slated to provide its complete second-quarter results on July 24, 2025, registering significant strides in the rollout of its business strategies. The company has also scheduled a conference call for the same day to further delve into its performance and future outlook.

NOK Price Movement

As of the latest trading session, shares of Nokia Corporation (NYSE: NOK) witnessed a decline of 6.11%, trading at $4.46. This downward trend reflects the market's response to the anticipated adjustment in profit projections.

Conclusion

Despite these challenges, Nokia's management remains committed to navigating the complexities of the current economic landscape. The significant adjustments and foresight displayed emphasize the company's strategic approach to maintaining operational stability in fluctuating markets.

Frequently Asked Questions

What is the reason for Nokia's profit guidance adjustment?

Nokia adjusted its profit guidance due to expected currency fluctuations and recent tariff impacts affecting operational profits.

What are the new profit expectations for Nokia?

Nokia's updated profit expectations range from 1.6 billion euros to 2.1 billion euros for 2025.

When will Nokia release its second-quarter results?

Nokia plans to release its full second-quarter results on July 24, 2025.

How did Nokia's shares perform after the announcement?

Nokia shares were down 6.11%, trading at $4.46 following the profit guidance adjustment.

What impact is Nokia expecting from tariff adjustments?

Nokia expects tariffs to reduce operating profit by an additional 50 million euros to 80 million euros.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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