Nokia recently lowered their 2025 profit projections in light elements beyond their control such as the impact of increased currency and U.S. tariffs ahead of their Q2 results announcement.
Ahead of its second quarter earnings announcement, the Finnish vendor stated it felt “it is 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 per cent to 80 per cent.
The change to its outlook represents one of the first major moves made by CEO Justin Hotard, who replaced Pekka Lundmark in April.
Hotard told the Financial Times 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 it expects to report net sales of €4.6 billion, a 2 per cent increase year-on-year. Operating profit is expected to show a decline to €300 million from €423 million.
Source: Mobile World Live
Image Credit: Nokia
