Nokia reports 38% rise in Q4 profit
Nokia surpasses estimates with strong Q4 results, eyes continued growth in 2025
Nokia reported a 38% rise in its fourth-quarter adjusted operating profit, driven by strong demand for telecom equipment, especially from North America and India.
The company posted net sales of 5.98 billion euros ($6.23 billion), a 10% year-on-year increase, surpassing analyst forecasts of 5.74 billion euros. This performance marks a significant rebound after years of fluctuating demand in key global markets, reports Reuters.
Strong Performance in Network Infrastructure
Nokia’s network infrastructure business, which is a key driver of its growth, saw a 17% rise in sales. This increase was primarily attributed to a strong recovery in demand from communication service providers, especially in North America.
After years of slow growth, the region has seen a revival in telecom investment, particularly from mobile operators looking to upgrade their infrastructure. This has benefitted both Nokia and its Nordic competitor, Ericsson, which also reported strong sales in the region.
CEO’s Optimistic Forecast for 2025
CEO Pekka Lundmark expressed optimism about the market's future, suggesting that the improving trends in demand are likely to persist into 2025. He pointed to a strong rebound in North America, coupled with a recovery in India, as signs that Nokia is well-positioned to continue growing.
For the quarter, comparable earnings before interest and tax (EBIT) reached 1.14 billion euros, significantly exceeding the 960 million euros expected by analysts. Looking ahead, Nokia forecast full-year profit for 2025 to be between 1.9 billion euros and 2.4 billion euros, slightly below the 2.13 billion euros anticipated by analysts.
Nokia's strong Q4 performance, driven by robust demand in North America and India, underscores its resilience in the telecom equipment market. The company’s optimistic outlook for 2025, coupled with its strong sales in critical regions, positions it well for continued growth.
Reminder, Finnish telecommunications giant Nokia Technologies, which dominated the mobile communications market in the early 2000s, is making a move into the rapidly growing field of digital assets.
