Nokia expects improved performance in the second half of 2025, according to CEO Justin Hotard. This statement follows a profit warning issued earlier in the week, which cited challenges from a weaker US dollar and tariffs.

Hotard indicated that fluctuations in the euro-dollar exchange rate could result in an estimated impact of 10 to 15 million euros (US$12 million to US$18 million) for every one-cent change.

Following the profit warning, Nokia’s shares fell 7.6% on July 23, but saw a slight recovery, rising about 1% in early trading on July 24.

The Finnish telecoms firm confirmed its preliminary second quarter figures, reporting revenue of 4.55 billion euros (US$5.5 billion) and a 29% drop in operating profit to 301 million euros (US$361.2 million).

Both figures fell short of market expectations, with analysts predicting an operating profit of 402 million euros (US$482.4 million), according to Infront consensus.

The results also reflected a 60-million-euro (US$72 million) currency revaluation and tariffs of 20 to 30 million euros (US$24 million to US$36 million).

Hotard stated that the company aims to simplify its operations and invest in connectivity technologies to foster growth in AI.

A decade ago, Nokia shifted its focus from mobile phones to telecoms infrastructure.

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