Nokia (NOKIA) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales grew 9% year-over-year in constant currency, led by Network Infrastructure (+17%) and strong contributions from Nokia Technologies and Cloud and Network Services, while Mobile Networks declined slightly.

• Comparable gross margin reached 47.2% and operating margin 19.1%, both the highest since 2015 and up significantly year-over-year.

• Free cash flow for the year was EUR 2.0 billion; net cash at year-end was EUR 4.9 billion after EUR 1.4 billion returned to shareholders via dividends and buybacks.

• Strategic acquisitions (Infinera, Fenix, Rapid) and divestments (Submarine Networks, CNS assets) executed to strengthen growth areas.

• Board proposes a dividend of EUR 0.14 per share for 2024 and continued share buybacks to offset Infinera acquisition dilution.

Financial highlights

• Q4 2024 net sales: EUR 6.0 billion (+9% year-over-year in constant currency); full-year net sales: EUR 19,220 million (-9%).

• Q4 comparable gross margin: 47.2% (+250–380bps YoY); Q4 comparable operating margin: 19.1% (+250–380bps YoY); Q4 comparable diluted EPS: EUR 0.18.

• Full-year comparable operating profit: EUR 2,619 million (+12%); free cash flow conversion: 72% of comparable operating profit.

• Returned EUR 1.4 billion to shareholders in 2024 (EUR 710 million dividends, EUR 680 million buybacks).

• Net cash at year-end: EUR 4.9 billion; total cash: EUR 8.7 billion.

Outlook and guidance

• 2025 comparable operating profit guidance: EUR 1.9–2.4 billion (organic, excluding Infinera); free cash flow conversion forecasted at 50–80%.

• Improved order trends and sales momentum from H2 2024 expected to continue into 2025.

• Network Infrastructure and Cloud & Network Services expected to grow; Mobile Networks to remain stable despite a 4% headwind from AT&T.

• 2026 targets: net sales to grow faster than the market, operating margin ≥13%, and free cash flow conversion of 55–85%.