Company: NOKBF
Filing Date: 2025-10-23
Form Type: 6-K
Source: 0001104659-25-101680
Chunk: 24

Company: NOKIA CORP
Filing Date: 2025-10-23
Form: 6-K
Chunk 24
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 months of 2025 resulting from strong growth in both Network Infrastructure and Cloud and            
 Network Services. This was partially offset by a decline in Nokia Technologies, where the           
 first quarter of 2024 benefited from more than EUR 400 million catch-up net sales. Mobile           
 Networks also declined, reflecting accelerated revenue recognition from a contract resolution       
 that benefited the year-ago period by EUR 150 million. Gross margin Both reported and comparable    
 gross margin declined year-on-year in the first nine months of 2025. Reported gross margin          
 decreased 320 basis points to 42.9% and comparable gross margin decreased 330 basis points          
 to 43.7%. The decline was driven mainly by the lower net sales in both Mobile Networks and          
 Nokia Technologies, both of which saw one-time benefits in the first nine months of 2024.           
 Mobile Networks gross margin was also negatively impacted by a one-time contract settlement         
 in the first nine months of 2025, related to a customer specific project that started in            
 2019. Operating profit and margin Reported operating profit in the first nine months of 2025        
 was EUR 345 million, or 2.5% of net sales, a decrease from EUR 1 109 million or 8.4% in the         
 first nine months of 2024. Comparable operating profit decreased to EUR 966 million from            
 EUR 1 498 million year-on-year and comparable operating margin decreased 430 basis points           
 year-on-year to 7.0%. The decrease in comparable operating profit was mainly due to lower           
 gross profit. Additionally, operating expenses increased year-on-year, as underlying cost           
 reductions were more than offset by targeted investments for long-term growth and the inclusion     
 of Infinera into our financial results. Other operating income also declined mainly reflecting      
 the absence of reversal of loss allowances which benefited Q3 2024. The impact of hedging           
 in the first nine months of 2025 was positive EUR 27 million, compared to a positive impact         
 of EUR 20 million in the first nine months of 2024. In the first nine months of 2025, the           
 difference between reported and comparable operating profit was primarily related to EUR            
 330 million of amortization and depreciation of acquired intangible assets and property,            
 plant and equipment, EUR 178 million of restructuring and associated charges, the release           
 of acquisition-related fair-value adjustments to deferred revenue and inventory of EUR 83           
 million, and EUR 23 million of transaction