Nokia Corporation's Financial Review Highlights from Q2 2025
Nokia Corporation's Financial Performance Overview
Nokia Corporation has recently shared its financial results for the second quarter and the first half of 2025. The report illustrates both challenges and opportunities as the company navigates through market fluctuations.
Summary of Financial Results
In Q2 2025, Nokia's comparable net sales saw a slight decline of 1% year-over-year when accounting for constant currency and portfolio adjustments, translating to a reported decrease of 2%. This decline can largely be attributed to a significant 13% drop in Mobile Networks, a segment that had benefitted from enhanced revenue recognition in the previous year. Conversely, the company experienced growth in areas such as Network Infrastructure, which rose by 8%, and Cloud and Network Services, which achieved a 14% increase. Nokia Technologies also showed promising growth, increasing by 3%.
Gross Margins and Operating Profits
Nokia's comparable gross margin for the second quarter remained steady at 44.7%, with a reported increase of 10 basis points to 43.4%. Despite stable margins in certain segments, the comparable operating margin decreased by 290 basis points to 6.6%. The operating profit faced challenges due to a EUR 50 million negative impact from venture funds, including a EUR 60 million adverse currency revaluation, compounded by tariff effects.
Management Commentary
Justin Hotard, President and CEO of Nokia, highlighted the significance of connectivity in the evolving technological landscape, particularly within the realms of AI and national security. As he described, "Our portfolio in mobile and fiber access, data center, and transport networks positions Nokia as a frontrunner in this pivotal market transition." Hotard expressed optimism as client discussions reflect strong validation of Nokia's technological edge and collaborative culture.
Market Expectations and Future Guidance
Looking forward, Nokia anticipates a stronger performance in the latter half of the year, particularly in Q4, aligning with typical seasonal trends. The company retains its outlook for the year, expecting continued growth in Network Infrastructure and stability in Mobile Networks. However, they recognize potential headwinds from currency fluctuations and tariff impacts that could affect operating profits.
Dividend Announcement
The Board of Directors has resolved to distribute a dividend of EUR 0.04 per share following endorsement at the Annual General Meeting. This payments schedule reflects the organization's ongoing commitment to shareholder returns.
Investor Engagement and Financial Calendar
Nokia is dedicated to maintaining open lines of communication with its investors. The upcoming third-quarter results are scheduled for publication, providing further insights into the company's ongoing financial health and strategic direction.
Frequently Asked Questions
What were Nokia's comparable net sales in Q2 2025?
Nokia's comparable net sales in Q2 2025 saw a decline of 1% year-on-year.
How did the operating margin perform in this quarter?
The comparable operating margin decreased to 6.6%, impacted by various costs and negative currency revaluation.
What is the outlook for Nokia in the second half of 2025?
Nokia expects strong growth in Network Infrastructure and stability in Mobile Networks, with a potential upturn in Q4.
What dividend has Nokia announced for shareholders?
The Board of Directors announced a dividend of EUR 0.04 per share to be paid following the record date of July 29, 2025.
When will Nokia publish its next financial results?
Nokia plans to announce its third-quarter results on October 23, 2025.
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