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Mar 31, 2025
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Nokia Q1 2025 Earnings Report
Nokia reported a slight revenue decline and a net loss in Q1 2025, driven by one-time charges and lower licensing income.
Key Takeaways
Nokia delivered Q1 2025 results with €4.39 billion in revenue, down slightly from the previous year. A net loss of €60 million was recorded, primarily due to a one-time contract settlement and weaker Nokia Technologies performance. However, Network Infrastructure and Cloud Services showed strong growth.
Network Infrastructure grew 11% YoY on a constant currency and portfolio basis.
One-time €120 million contract settlement in Mobile Networks significantly impacted profitability.
Nokia Technologies revenue halved due to prior year licensing catch-ups.
Positive free cash flow of €721 million and strong momentum in Cloud and Network Services.
Revenue by Segment
Forward Guidance
Nokia reiterated its 2025 outlook despite challenges, expecting comparable operating profit of €1.9B–€2.4B and free cash flow conversion of 50–80%.
Positive Outlook
- Strong backlog and sales momentum in Network Infrastructure.
- Integration of Infinera is on track with synergy plans communicated.
- Continued demand for 5G Core offers across major markets.
- Growth in enterprise and hyperscale customer segments.
- No change to free cash flow and operating profit guidance for FY 2025.
Challenges Ahead
- Tariff-related headwinds may impact Q2 profits by €20–€30 million.
- Mobile Networks faced a one-time €120 million charge.
- Licensing revenue volatility continues in Nokia Technologies.
- Reduced cash and net cash due to Infinera acquisition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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