Nokia reported strong financial results for Q4 and full-year 2024. In Q4, net sales grew by 9% (10% reported), driven by Network Infrastructure, Nokia Technologies, and Cloud & Network Services. The company saw a 250 basis point increase in gross margin to 47.2% and a 380 basis point rise in operating margin to 19.1%. Nokia’s Q4 diluted EPS was EUR 0.18, with free cash flow of EUR 0.05 billion and a net cash balance of EUR 4.9 billion.
For 2024, Nokia’s net sales declined by 9% due to a drop in India but achieved a comparable operating profit of EUR 2.6 billion. Full-year comparable diluted EPS was EUR 0.39, and the company is proposing a EUR 0.14 dividend per share. Looking ahead to 2025, Nokia expects a comparable operating profit between EUR 1.9 billion and EUR 2.4 billion and continues to target strong cash flow conversion.
Nokia’s business units delivered solid performance, with Network Infrastructure seeing 17% growth, Mobile Networks stabilizing, and Cloud & Network Services returning to growth. Nokia Technologies also performed well. The company ended 2024 with EUR 2.0 billion in free cash flow and EUR 4.9 billion in net cash, even after returning EUR 1.4 billion to shareholders.
Nokia is progressing in the data center market, planning to invest an additional EUR 100 million annually to achieve EUR 1 billion in sales by 2028. CEO Pekka Lundmark expressed confidence in the company’s ability to execute in volatile market conditions.