Nokia Cuts 2025 Profit Forecast Amid Currency and Tariff Pressures

Nokia (HEL:HE:NOKIA) has lowered its 2025 comparable operating profit guidance, citing significant currency headwinds and ongoing tariff impacts. The Finnish telecom equipment maker now expects profits between €1.6 billion and €2.1 billion, down from its previous forecast of €1.9 billion to €2.4 billion.

According to a preliminary release, approximately €230 million of the downward revision stems from currency pressures, largely due to a weaker U.S. dollar. Of this, €140 million relates to operational impacts, while €90 million results from non-cash venture fund currency revaluations. The revised outlook assumes a euro-to-dollar exchange rate of $1.17, compared to the earlier $1.04 assumption. Tariffs are projected to add further strain, contributing an additional €50 million to €80 million in costs.

Nokia also reported preliminary second-quarter sales of €4.55 billion, falling about 3% below analyst estimates. Comparable operating profit for the quarter came in at €300 million, missing forecasts of €406 million and resulting in a 6.6% operating margin.

Despite these challenges, the company reaffirmed its free cash flow conversion target of 50% to 80% for the year, signaling confidence in its ability to generate strong cash returns amid market headwinds.

This revision highlights the pressures facing global telecom equipment suppliers, as fluctuating currency rates and trade tariffs continue to impact profitability forecasts and investor sentiment. Nokia’s updated guidance will likely be closely monitored ahead of its full earnings release.