Nokia Warns of Weaker Q2 Results, Cuts 2025 Targets Amid Currency and Trade Tensions

Nokia has lowered its 2025 targets and warned of a Q2 shortfall due to currency fluctuations and international trade tensions. The company expects operating profit of €1.6bn to €2.1bn this year, down from €1.9bn to €2.4bn. For Q2, Nokia forecasts net sales of around €4.55bn and operating profit of €300m, significantly lower than analysts' estimates. Nokia shares have fallen 7.3% in response.

Helsinki, Finland - Nokia Oyj (NOK) has revised its 2025 financial projections and warned of a shortfall in the second quarter, citing currency fluctuations and international trade tensions. The company expects its comparable operating profit to range between €1.6 billion and €2.1 billion, down from the previously estimated €1.9 billion to €2.4 billion [1][2][3].

Nokia's outlook was primarily affected by the weakening US dollar, which is expected to have a negative impact of approximately €230 million on its operating profit. This includes a €140 million operational effect and a €90 million non-cash negative valuation change in venture fund investments [1][2]. Additionally, tariffs are anticipated to reduce the full-year operating profit by an estimated €50 million to €80 million [1][2][3].

For the second quarter, Nokia forecasts net sales of around €4.55 billion and a comparable operating profit of €300 million. These figures are significantly lower than the analysts' estimates of €4.8 billion in sales and a comparable operating profit of €407 million [3]. The company attributed the shortfall to currency and tariff headwinds beyond its control, noting that its core business performed as expected during the first half of the year [3].

Nokia's guidance for the conversion of free cash flow from comparable operating profit remains unchanged at 50 to 80 percent. The company's revised outlook is based on an exchange rate of €1 = $1.17, compared to the rate of €1 = $1.04 used in January when the company initially provided its 2025 guidance [1][2][3].

Nokia's shares have fallen 7.3% in response to the revised outlook and the Q2 shortfall warning. The company will publish its complete second-quarter results and half-year report on Thursday, July 24, 2025.

References:
[1] https://www.gurufocus.com/news/2994698/nokia-nok-faces-challenges-in-2025-outlook-due-to-currency-and-tariff-impacts-nok-stock-news
[2] https://www.investing.com/news/company-news/nokia-cuts-2025-operating-profit-outlook-due-to-currency-impact-93CH-4146599
[3] https://www.marketscreener.com/news/nokia-lowers-2025-outlook-due-to-currency-headwinds-q2-results-fall-short-of-expectations-ce7c5cddda8bf62c