Nokia has reported disappointing financial results for the first quarter of 2025, falling short of market expectations. Comparable operating profit for the quarter was €156 million, significantly lower than the forecasted €243.83 million. The company also highlighted potential disruptions in the second quarter due to newly imposed U.S. tariffs, estimating a profit impact of €20-30 million.
The results were further affected by a one-time charge of €120 million in Nokia’s mobile networks division, impacting the company’s overall margins. Net sales for the quarter were €4.39 billion, marking a 3% decline on a constant-currency basis compared to the same period last year, and slightly below analyst expectations of €4.41 billion. Despite ongoing competition with Ericsson, Nokia’s sales in North America have demonstrated steady growth. However, the U.S. tariffs introduced under President Donald Trump may slow this momentum, as concerns over potential price increases could lead to delays in orders.
Justin Hotard, who recently assumed the role of CEO in April, reaffirmed Nokia’s commitment to investing in research and development (R&D) and expanding manufacturing capabilities in the United States. He dismissed any speculation about moving the company’s headquarters, emphasizing that investment decisions would focus on strengthening local operations.
In a positive development, Nokia extended its partnership with T-Mobile to enhance the U.S. carrier’s 5G network coverage, although financial details of the agreement were not disclosed. The announcement of this contract extension was overshadowed by weaker-than-expected earnings, leading to a more than 6% drop in Nokia’s shares during early Helsinki trading.