Nokia mobile networks sales fall 13 per cent in Q2 amid currency volatility

Nokia’s mobile networks division reported a 13 per cent year-on-year drop in comparable net sales for Q2 2025, on a constant currency and portfolio basis.

The decline reflects ongoing headwinds, including the timing of project deliveries and a challenging comparison with an exceptional prior-year quarter.

Net sales in the segment fell to €1.73 billion, down from €2.08 billion in Q2 2024. On a reported basis, the year-on-year decline was 17 per cet. Nokia attributed the drop mainly to the absence of accelerated revenue recognition seen last year, as well as delays in project rollouts in India.

Despite the fall in revenue, Mobile Networks held gross margin relatively steady at 41.1 per cent  only slightly down from 41.8 per cent a year earlier. However, operating profit halved to €77 million from €182 million, with the operating margin narrowing from 8.8 per cent to 4.4per cent .

The decline in Mobile Networks contrasted with gains elsewhere in the business. Nokia’s Network Infrastructure unit grew net sales by eight per cent , while Cloud and Network Services rose 14 per cent , both on a constant currency and portfolio basis.

“Mobile Networks was impacted by prior-year settlement benefits and timing of projects in India,” said Nokia CEO Justin Hotard. “We expect stable net sales for the business in constant currency terms for the full year.”

Hotard also flagged currency swings and tariffs as key challenges. Currency effects are now expected to reduce full-year operating profit by €230 million, including €90 million from revaluations.