Nokia has reported a €68 million net loss for the first quarter of 2025, citing global trade tensions and new U.S. tariffs as key headwinds impacting performance.
The Finnish telecom giant, which posted a profit of €438 million during the same period last year, saw its Q1 net sales dip slightly to €4.4 billion—down 1% year-on-year—as international supply chains and market dynamics shifted under the weight of ongoing tariff wars.
President and CEO Justin Hotard acknowledged the challenges but expressed cautious optimism for the months ahead.
“We are not immune to the rapidly evolving global trade landscape,” Hotard said in a statement on Thursday. “However, based on early customer feedback, I believe our core markets should remain relatively resilient.”
Hotard warned of further strain in Q2, projecting a potential €20–30 million impact to Nokia’s comparable operating profit due to the newly imposed U.S. tariffs. Earlier this month, President Donald Trump introduced a 10% tariff on all global imports, though planned increases—including a 20% tariff targeting EU goods—have been temporarily paused.
Despite the rocky start to the year, Nokia remains confident in its long-term outlook, with growth expectations centered on its Network Infrastructure, Cloud and Network Services, and Mobile Networks divisions.
As a sign of that forward momentum, the company also announced a contract extension with T-Mobile US, signaling continued strength in its North American mobile operations.
“We continue to see positive signs of stabilization in our Mobile Networks segment,” the company stated.
With global trade uncertainties and technological transitions reshaping the telecom landscape, Nokia’s Q1 results serve as a snapshot of both present challenges and potential opportunities ahead.
