Nokia published Q4 and full year financial report
Nokia published its Q4 and full year financial report. The Finns reported strong performance in Q4 2024, with net sales of €6.67 billion, up 10% year-over-year. For the full year, they achieved a 7% increase in net sales, totaling €24.65 billion. The company’s networks and enterprise sectors drove growth, while its operating profit margin improved. Nokia also made significant strides in 5G technology and secured new customer contracts. CEO Pekka Lundmark emphasized the company’s ongoing transformation toward higher-value software and services, alongside a focus on operational efficiency.
In Q4 2024, Nokia saw a 9% growth in net sales (10% reported), driven by Network Infrastructure and Nokia Technologies. Gross and operating margins improved, reaching 47.2% and 19.1%, respectively. Full-year 2024 results showed a 9% decline in net sales, partly due to India. The Board proposed a EUR 0.14 dividend per share. For 2025, Nokia expects comparable operating profit between EUR 1.9-2.4 billion and free cash flow conversion of 50%-80%.
Nokia is progressing with its Infinera acquisition, expecting closure in Q1 2025 after receiving key approvals. It has also exercised a call option to simplify its ownership in China by acquiring China Huaxin’s 50% share in Nokia Shanghai Bell. Additionally, Nokia moved its Managed Services business from Cloud and Network Services to Mobile Networks starting January 2025. Risks include competition, supply chain issues, and geopolitical factors.
Interestingly, not much is being discussed of consumer products, smartphones or brand licensing. Nokia Technologies did well. They have signed a deal with Transsion, a previously unlicensed mobile devices vendor, along with multimedia deals with HP and Samsung, as well as many other smaller deals. Licensing should bring approximately between EUR 1.3 and 1.4 billion in Q4, progressing towards Nokia’s mid-term EUR 1.4 to 1.5 billion target.
Stocks look good today
For more, check the detailed report here.
