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Nokia Corp.

Nokia Corporation Reports Q2 and Half Year 2024 Earnings, Reiterates Full-Year Outlook Amid Challenging Environment

Strategic Insights

— 1 min read

Nokia Corporation's Q2 and Half Year 2024 financial results reflect a challenging environment, with net sales declining 18% year-over-year in constant currency. However, the company made significant progress in its cost savings program, achieving a run-rate of EUR 400 million in savings, and has accelerated its share buyback program to complete the full EUR 600 million by the end of the year. Order intake trends continued to improve, particularly in Network Infrastructure, with the company securing important design wins and returning to growth in North America.

Key Takeaways:

  • Net sales declined 18% year-over-year in constant currency, primarily due to a strong year-ago quarter in India.
  • Order intake trends continued to improve, particularly in Network Infrastructure, with the company securing important design wins and returning to growth in North America.
  • The company made significant progress in its cost savings program, achieving a run-rate of EUR 400 million in savings.
  • Nokia's share buyback program has been accelerated to complete the full EUR 600 million by the end of the year.
  • The company has secured a number of important design wins in Network Infrastructure, including several fiber deals in the US and orders from a US distributor for both Fixed and IP products.
  • Nokia's backlog further expanded, and the company expects a meaningful improvement in net sales in the second half of the year.

Statistics:

  • Net sales: EUR 4.466 billion (Q2 2024), down 18% year-over-year in constant currency.
  • Comparable gross margin: 44.7% (Q2 2024), up 450bps year-over-year.
  • Comparable operating margin: 9.5% (Q2 2024), down 190bps year-over-year.
  • Order intake: Revealed an improving trend, particularly in Network Infrastructure, with several important design wins and returning to growth in North America.
  • Cash generation: Q2 2024 saw free cash flow of EUR 394 million as working capital position continues to normalize.

Sources:

  • Nokia Corporation Report for Q2 and Half Year 2024
  • Nokia Corporation's news release: Nokia Corporation Report for Q2 and Half Year 2024
  • Video interview with Pekka Lundmark, President and CEO, on Q2 2024 results
  • Nokia Technologies whitepaper: "Nokia's Strategic Framework for Network Infrastructure"

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