Here is a summary of the Nokia Corporation Interim Report for the first quarter (Q1) of 2025
**Financial Performance**
Q1 net sales declined by 3% year-over-year on a constant currency and portfolio basis, due to a challenging comparison with the previous years performance by Nokia Technologies.
Comparable gross margin decreased by 820 basis points to 42.3%, partly due to lower net sales in Nokia Technologies and a contract settlement charge in Mobile Networks.
Q1 comparable operating margin decreased by 990 basis points to 3.6%, mainly due to lower gross margin and increased operating expenses.
Q1 comparable diluted earnings per share (EPS) were EUR 0.03, while reported diluted EPS was EUR -0.01.
Q1 free cash flow was EUR 0.7 billion, with a net cash balance of EUR 3.0 billion.
**Business Group Results**
Network InfrastructureNet sales grew by 11% year-over-year, with all units contributing to growth. The Infinera acquisition, completed in Q1, increased Nokias scale in Optical Networks and with hyperscalers.
Mobile NetworksNet sales grew by 2%, with positive signs of stabilization and additional contract wins. However, profitability was impacted by a one-time contract settlement charge.
Cloud and Network ServicesNet sales grew by 8%, with strong demand for 5G Core offers.
Nokia TechnologiesExecuted additional deals, increasing the contracted annual net sales run-rate to approximately EUR 1.4 billion.
**Outlook for 2025**
Nokia maintains its full-year 2025 outlook, expecting strong net sales growth in Network Infrastructure, growth in Cloud and Network Services, and stable net sales for Mobile Networks.
Comparable operating profit guidance remains between EUR 1.9 and 2.4 billion, while free cash flow guidance is between 50% and 80% of comparable operating profit.
The company expects a EUR 20 to 30 million impact on comparable operating profit in the second quarter due to tariffs.
**Other Highlights**
Shareholder DistributionThe Board of Directors proposes a maximum dividend distribution of EUR 0.14 per share for the financial year 2024.
Share Buyback ProgramNokia completed a share buyback program in Q1, repurchasing 150 million of its own shares to offset dilution from the Infinera acquisition.
Infinera AcquisitionNokia completed the acquisition of Infinera, expanding its presence in optical networking and with hyperscalers.
Risk Factors and Forward-Looking Statements: Nokia outlines various risks and uncertainties, including competitive intensity, supply chain disruptions, macroeconomic factors, and the impact of litigation and licensing agreements.
The full report provides detailed financial information, including segment-level discussions, and is available on Nokias website.