Nokia Oyj cut its full-year profit forecast on Thursday, citing headwinds from currency fluctuations and tariffs.
The Finnish telecommunications equipment maker said it now expects a comparable operating profit of between 1.6 billion and 2.1 billion euros for 2025, down from its previous guidance of 1.9 billion to 2.4 billion euros.
The company attributed the downgrade to an approximately 230 million euro negative impact from currency, particularly a weaker U.S. dollar, and a 50 million to 80 million euro impact from tariffs.
"Considering these two headwinds, we decided it was prudent at this point to lower our comparable operating profit outlook," President and CEO Justin Hotard said in a statement.
The warning came as Nokia reported its second-quarter results, where comparable operating profit fell 29% to 301 million euros from 423 million euros a year earlier.
The company said the quarterly profit was hit by a 50 million euro negative impact from its venture funds, which included a currency revaluation, and the effect of tariffs.
Comparable net sales for the quarter declined 1% on a constant currency basis, as a 13% drop in its Mobile Networks business offset growth in other divisions.
More from this issuer
Related coverage
Nokia said Tuesday it plans to delist its shares from the Euronext Paris stock exchange, citing a review of trading volumes, costs and administrative requirements.
Nokia said Tuesday that Nvidia will make a $1 billion equity investment in the company as part of a new strategic partnership focused on artificial intelligence-powered networks.
Nokia Oyj raised its full-year profit forecast on Thursday, a move the telecommunications-equipment maker attributed to an accounting change rather than an improvement in its underlying business.
Nokia announced a leadership overhaul on Wednesday, creating new units focused on artificial intelligence and corporate development in the latest move by new Chief Executive Justin Hotard to reshape the Finnish telecom equipment maker.