Nokia Generates an Operating Profit of 2.0 Billion Euros in 2025, Slightly Above Its Forecasts
Nokia announced its financial results for the fourth quarter and the full year of 2025 on Thursday. The company reported a comparable operating profit of 2.0 billion euros for the year, slightly exceeding the midpoint of its guidance, while the fourth quarter proceeded in line with expectations.
Annual and Quarterly Performance Details
Nokia generated a comparable operating profit of 2.0 billion euros for the year 2025, slightly above the midpoint of its guidance. In the fourth quarter, the company's performance met expectations, with comparable net sales growing by 3% in constant currency and scope, reaching 6.1 billion euros. Network infrastructure demonstrated a 7% growth in net sales during the fourth quarter, notably driven by a 17% increase in optical networks. The order intake was robust in the optical and IP network areas, with a book-to-bill ratio exceeding one, supported by demand from artificial intelligence and cloud clients. Fixed networks saw stable sales for the quarter, reflecting a 16% growth in optical line terminal devices offset by weaknesses in certain segments of the portfolio being deprioritized. Mobile networks recorded a 6% increase in net sales for the fourth quarter and were stable throughout the full year. Nokia Technologies maintained a contracted net sales rate of 1.4 billion euros.
Strategic Repositioning and Outlook for 2026
Throughout 2025, Nokia repositioned its portfolio with the acquisition of Infinera and announced a simplification of its operational model into two segments starting in 2026: network infrastructure and mobile infrastructure. The company took full control of its joint venture Nokia Shanghai-Bell in China in the fourth quarter of 2025, resulting in a net cash outflow of 0.5 billion euros. Nokia expects to realize approximately 200 million euros in synergies with integration costs of 350 to 400 million euros over a period of 24 to 36 months. For 2026, Nokia targets a comparable operating profit of 2.0 to 2.5 billion euros. The company anticipates strong demand in network infrastructure with the launch of new products and by strengthening its presence among artificial intelligence and cloud clients. In mobile infrastructure, Nokia expects a stable market environment and is focusing on efficiency and profitability improvements.
Proposed Dividend Distribution for 2025
The board of directors proposes to the annual general meeting in 2026 to authorize a maximum distribution of 0.14 euros per share for the fiscal year 2025. This authorization would be used to distribute dividends in four quarterly installments during the authorization period. On January 29, 2026, the board resolved to distribute a dividend of 0.03 euros per share, with the ex-dividend date set for February 3, 2026, and payment scheduled for February 12, 2026.
