Nokia expects the second half of 2025 to be stronger than the first, CEO Justin Hotard said today, two days after the network equipment maker issued a profit warning due to a weaker US dollar and tariffs.
"Considering these two headwinds, we decided it was prudent at this point to lower our comparable operating profit outlook," Hotard said in a statement.
He told reporters in a call that other significant foreign exchange moves were a risk in the near term, estimating an impact of €10-15m for every one cent of change in the euro-dollar exchange rate.
Nokia's shares fell 7.6% yesterday after the profit warning the night before.
Hotard said today the company would continue to invest in connectivity to capitalise on the growth of artificial intelligence, targeting communication service providers but also new areas such as defence and national security.
Hotard, who was previously the head of Intel's AI and data centre business, took the CEO position in April and pledged to capitalise on AI, defence and private networks.
A decade ago, the Finnish firm had moved away from its once-dominant mobile phone business, which made it a household name thanks to its 3310 model, to focus on telecoms infrastructure serving carriers and enterprise clients.
Nokia also confirmed the preliminary figures for the second quarter. Its operating profit, which excludes certain charges and asset revaluations to make it comparable with last year's results, fell 29% to €301m in the quarter, while revenue grew marginally to €4.55 billion.
