Nokia, a multinational telecommunications company, has reported a mixed financial result for its second quarter, with currency fluctuations, particularly a weaker US dollar, significantly impacting its performance.

Nokia disclosed this in its 2025 Second Quarter Report on Thursday.

The president and chief executive officer of Nokia, Justin Hotard, attributed some of the decline to currency fluctuations, stating that the company’s net sales and operating profit were affected by these fluctuations.

Mr Hotard also noted that the mobile networks segment’s net sales decline of 13 per cent was primarily due to a prior-year settlement benefit and project timing in India.

Despite these challenges, Mr Hotard expressed optimism about the company’s position in the evolving connectivity landscape.

“Connectivity is becoming a critical differentiator in the artificial intelligence supercycle. We are unifying our corporate functions to streamline operations, foster a more cohesive culture, and unlock operating leverage,” Mr Hotard added.

Speaking on network infrastructure, he noted that the segment demonstrated strong growth, with an eight per cent increase in the second quarter, driven by continued strong order momentum in optical networks.

Mr Hotard said that the cloud and network services segment saw robust growth of 14 per cent, driven by strong momentum in 5G Core.

According to him, Nokia technologies grew by three per cent and successfully secured several new agreements during the quarter.

“In terms of financial highlights, comparable net sales declined by one per cent year-on-year in constant currency and portfolio terms, while comparable gross margin remained flat year-on-year at 44.7 per cent.

“Despite the revised outlook, the company expects a stronger second-half performance, particularly in the fourth quarter, with strong growth in network infrastructure, cloud, and network services,” Mr Hotard stated.

According to the report, the company generated €0.1 billion in free cash flow for the second quarter, contributing to a total of over €800 million in free cash flow for the first half of the year.

The report stated that Nokia’s net cash balance stood at €2.9 billion.

The report also noted that Nokia’s full-year 2025 comparable operating profit outlook had been revised to €1.6 billion from €2.1 billion, reflecting a downward adjustment from the prior outlook of €1.9 billion to €2.4 billion, primarily due to currency fluctuations and tariffs.

It also stated that Nokia Technologies is expected to achieve approximately €1.1 billion in operating profit for the full year.

(NAN)