Finnish telecom giant Nokia reported a significant decline in its net profit for the first quarter of 2025, posting a net loss of €68 million ($73 million). The downturn contrasts sharply with the €438 million profit recorded in the same period last year, signaling headwinds from ongoing global tariff disputes and a shifting trade environment.
In a statement released on Thursday, Nokia President and CEO Justin Hotard acknowledged the impact of the United States’ recently imposed tariffs on global imports, describing the situation as “a rapidly evolving global trade landscape.”
“We are not immune to the rapidly evolving global trade landscape,” said Hotard. “However, based on early customer feedback, I believe our markets should prove to be relatively resilient.”
The company warned of a short-term disruption due to U.S. tariffs, anticipating a €20 to €30 million hit to its comparable operating profit in the second quarter. Earlier this month, U.S. President Donald Trump introduced a 10% tariff on global imports, though plans to implement a 20% duty on goods from EU nations were temporarily paused.
Despite the challenges, Nokia remains optimistic about the future. The company reported first-quarter net sales of €4.4 billion ($4.9 billion), a one percent drop compared to the previous year. However, Nokia sees potential for recovery and growth, particularly in its Network Infrastructure, Cloud and Network Services, and Mobile Network segments.
Further signaling confidence in its long-term strategy, Nokia announced a contract extension with U.S. telecommunications provider T-Mobile on Thursday. The company stated it is witnessing “positive signs of stabilization” in its Mobile Networks division, a crucial area as it competes in the global 5G rollout and beyond.
As Nokia navigates trade uncertainties and macroeconomic pressures, its ability to adapt and strengthen strategic partnerships like the one with T-Mobile could be key to its recovery. With a focus on innovation and operational resilience, the Finnish tech firm aims to rebound strongly in the coming quarters.
