Nokia Oyj Financial Update: Dividends, U.S. Business, and Tariff Challenges

Nokia Oyj, a global communications company known for its technological devices and software, has recently announced several key financial updates. The company, listed on NASDAQ OMX Helsinki Ltd, reported a close price of EUR 4.694 on April 22, 2025, with a 52-week high of EUR 5.035 and a low of EUR 3.2125. With a market capitalization of EUR 25.35 billion, Nokia has a price-to-earnings ratio of 14.55.

Dividend Announcement

Nokia has declared its intention to distribute a maximum dividend of EUR 0.14 per share for the fiscal year 2024. This move is part of the company’s strategy to return value to its shareholders.

U.S. Business Expansion and Tariff Concerns

In a mixed development, Nokia is experiencing growth in its U.S. business, particularly with a key client. However, this expansion comes with challenges as tariffs are expected to impact the company’s profits. The tariffs, a result of ongoing trade tensions, pose a significant threat to Nokia’s financial performance.

Network Infrastructure and Expansion Plans

Looking ahead, Nokia anticipates strong growth in network infrastructure, bolstered by synergies with Infinera. The company also plans a substantial €1 billion investment in data center expansion by 2028, highlighting its commitment to scaling its infrastructure capabilities.

Q1 2025 Earnings and Market Reaction

Nokia’s Q1 2025 earnings call revealed a profit that missed market expectations, leading to a decline in its stock price. The company reported a net loss of $68 million for the first quarter, attributing the decline to tariff wars and a shifting global trade landscape. This financial performance has resulted in a significant drop in Nokia’s stock, with the company experiencing over a 10% decrease in its share price.

Investor Sentiment and Market Impact

The market reaction to Nokia’s earnings report has been notably negative, with investors expressing disappointment. The company’s stock has been one of the largest decliners in the market, reflecting concerns over its financial health and future prospects. Despite these challenges, Nokia’s management remains focused on navigating the tariff landscape and capitalizing on growth opportunities in the U.S. and beyond.

Conclusion

Nokia Oyj faces a complex financial landscape, balancing dividend distributions with the challenges posed by tariffs and market expectations. The company’s strategic investments in network infrastructure and data centers indicate a long-term vision for growth, even as it navigates immediate financial hurdles. Investors will be closely watching Nokia’s ability to manage these dynamics and deliver on its growth potential.