Nokia downgrades profit guidance due to FX, tariffs

(Sharecast News) - Nokia shares had dropped 8% in Helsinki on Wednesday after the network infrastructure group cut its full-year profit outlook due to currency movements and tariffs. The Finnish firm said in a statement late on Tuesday that it expects operating profits to range between €1.6bn and €2.1bn in 2025, down from earlier guidance of €1.9bn-2.4bn.

The company said that, while the underlying business performed as expected through the first half, it was being "prudent" to cut forecasts at this stage "considering currency and tariff headwinds which are outside its control and have transpired since its Q1 results".

The largest headwind has been the weaker US dollar, which is estimated to knock the bottom line by €230m this year, while tariffs will have a €50m-80m negative impact.

Ahead of its second-quarter results on Thursday, Nokia said it expects to report net sales of €4.55bn and a comparable operating profit of €300m for the period, compared with net sales of €4.39bn and an operating loss of €48m reported in the first quarter.

The stock was down 7.8% at €3.79 by 1657 local time.