Half Year 2025 Nokia Oyj Earnings Call Transcript
Key Points
- Nokia Oyj (NOK) reported strong growth in Network Infrastructure and Cloud and Network Services, despite a decline in Mobile Networks.
- The acquisition of Infinera has shown positive results, with the Optical Networks business performing well and a book-to-bill ratio above 1.
- Nokia Oyj (NOK) continues to see strong demand in optical networks, with significant deals including a hyperscaler award for 800 gig ZR/ZR+ pluggables.
- Cloud and Network Services experienced a 14% growth in net sales, driven by strong expansion in core networks and improved margins.
- Nokia Oyj (NOK) is investing in innovation and partnerships, such as with blackned and Verizon, to capitalize on growth opportunities in AI and 5G networks.
- Nokia Oyj (NOK) faced a decline in Mobile Networks sales by 13%, primarily due to accelerated revenue recognition in the prior year.
- Currency fluctuations, particularly the weaker US dollar, negatively impacted profitability, with a EUR50 million non-cash negative impact from venture funds.
- The company lowered its full-year operating profit outlook due to currency movements and tariff impacts, posing a EUR230 million headwind.
- Supply chain constraints tempered growth in Optical Networks, which could have grown over 10% without these issues.
- Nokia Oyj (NOK) remains challenged by a flat market in Mobile Networks, with a need to preserve market share and seek growth opportunities.
Good morning, ladies and gentlemen. Welcome to Nokia's second quarter 2025 results call. I'm David Mulholland, Head of Investor Relations. And today with me is Justin Hotard, our President and CEO; along with Marco Wiren, our CFO.
Before we get started, a quick disclaimer. During this call, we will be making forward-looking statements regarding our future business and financial performance, and these statements or predictions that involve risks and uncertainties. Actual results may, therefore, differ materially from the results we currently expect. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the Risk Factors section of our annual report on Form 20-F, which is available on our Investor Relations website.
Within today's presentation, references to growth rates will mostly be on a constant currency and portfolio basis, and other financial items will be based on our comparable reporting. Please note that our Q2 report and the presentation that
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