Nokia full year profit EUR 2.6 billion, Dividend of EUR 0.14 proposed

The company's comparable gross margin in Q4 increased by 250 basis points to 47.2%, with a significant contribution from Nokia Technologies. The Q4 comparable operating margin also saw a substantial increase of 380 basis points, reaching 19.1%, due to higher gross margin, continued cost control, and increased contribution from Nokia Technologies.  

Nokia reported Q4 comparable diluted EPS of EUR 0.18 and reported diluted EPS of EUR 0.15. The company's free cash flow for Q4 was EUR 0.05 billion, with a net cash balance of EUR 4.9 billion.  

 

For the full year 2024, Nokia's net sales declined by 9% in both reported and constant currency, with 7 percentage points of this decline related to India. However, the company achieved a comparable operating profit of EUR 2.6 billion. Full year comparable diluted EPS was EUR 0.39, and reported diluted EPS was EUR 0.23. The Board of Directors is proposing a dividend authorization of EUR 0.14 per share.  

 

Nokia has issued its full year 2025 outlook on an organic basis and expects a comparable operating profit of between EUR 1.9 billion and EUR 2.4 billion. The company also targets free cash flow conversion from comparable operating profit of between 50% and 80%.  

Pekka Lundmark, President and CEO of Nokia, expressed optimism about the improving market trends and the company's strong finish to 2024.

 

He highlighted the 9% net sales growth and the excellent profitability in Q4, with a comparable operating margin of 19.1%. Lundmark also noted that the full year comparable operating profit was EUR 2.6 billion, meeting the midpoint of the company’s guidance.  

 

All business groups delivered a strong operational performance in the quarter. Network Infrastructure net sales growth accelerated to 17%, driven by strong demand recovery from communication service providers, particularly in North America. Mobile Networks net sales stabilized, and Cloud and Network Services returned to growth. Nokia Technologies had an extremely active quarter, with increased annual net sales run-rate.  

 

Nokia delivered a strong cash performance throughout 2024, ending with full year free cash flow of EUR 2.0 billion. The company continues to have a strong balance sheet, with net cash of EUR 4.9 billion at the end of the year, even after returning EUR 1.4 billion to shareholders through dividends and share buybacks.  

 

The Board is proposing an increase in the dividend to EUR 0.14 per share for the financial year 2024. Nokia is also progressing with its share buyback program to offset dilution from the pending Infinera acquisition.  

 

Looking ahead, Nokia expects the improved trends in Network Infrastructure to continue driving strong growth in 2025. Cloud and Network Services is also expected to grow, and Mobile Networks net sales are assumed to be largely stable. Nokia Technologies is expected to deliver approximately EUR 1.1 billion of operating profit.  

 

Nokia estimates it will deliver comparable operating profit of between EUR 1.9 and EUR 2.4 billion in 2025 and targets free cash flow conversion from comparable operating profit of between 50% and 80%.  

 

The company is also making further progress in expanding its presence in the data center market, with important deals and partnerships signed in Q4. Nokia will invest up to an additional EUR 100 million in annual operating expenses to drive incremental net sales of EUR 1 billion by 2028 in this market.  

 

“Given the market volatility in 2024, our results demonstrate the responsiveness and capacity of the Nokia team to execute in all market conditions,” said Lundmark.