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Mar 31
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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.
Nokia
Nokia
Nokia Revenue by Segment
Nokia Revenue by Geographic Location
Revenue by Segment
Network Infrastructure Revenue
CapyFin.comMobile Networks Revenue
CapyFin.comCloud & Network Services Revenue
CapyFin.comNokia Technologies Revenue
CapyFin.comGroup Common & Other Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comAPAC Revenue
CapyFin.comEMEA Revenue
CapyFin.com 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.
- Uncertain macroeconomic and geopolitical conditions could pressure future quarters.
Revenue & Expenses
Visualization of income flow from segment revenue to net income