Nokia Lowers 2025 Operating Profit Guidance Due to Currency Headwinds
Nokia Oyj has reduced its 2025 comparable operating profit forecast to a range of EUR 1.6 billion to EUR 2.1 billion, down from EUR 1.9 billion to EUR 2.4 billion. The adjustment is attributed to currency headwinds and tariffs.
Espoo, Finland – Nokia Oyj announced on July 22, 2025, a downward revision of its financial guidance for the full year 2025. The company now anticipates its comparable operating profit to fall within the range of EUR 1.6 billion to EUR 2.1 billion, a decrease from the previously projected EUR 1.9 billion to EUR 2.4 billion. The company attributes this adjustment primarily to adverse currency fluctuations, notably the weakening U.S. dollar, and the impact of tariffs.
Nokia stated that its underlying business performance remained on track through the first half of the year. However, external factors have negatively impacted the outlook. The company estimates that the weaker U.S. dollar will negatively affect operating profit by approximately EUR 230 million, comprising EUR 140 million from operational impacts and EUR 90 million from non-cash revaluations of venture funds. The effect of tariffs is expected to be between EUR 50 million and EUR 80 million.
Concurrently, Nokia released preliminary figures for the second quarter. Net sales are expected to be around EUR 4.55 billion, with a comparable operating profit of approximately EUR 300 million. This quarterly result includes a EUR 50 million negative impact stemming from currency effects within the company's venture funds. Nokia is scheduled to publish its official Q2 results on July 24, 2025.
The company's guidance for free cash flow conversion from comparable operating profit remains unchanged at 50% to 80%. The revised outlook is based on an assumed exchange rate of 1.17 euros per U.S. dollar, compared to the 1.04 rate used in January.