NOKIA CORP
For the period ended Dec 31, 2025. Filed Mar 5, 2026.
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The yearly report of a company based outside the US. It covers much of what a 10-K does, and may follow accounting rules other than US ones.
FY2025 · Filed Mar 5, 2026
Contents
Alternative performance measures
Certain financial measures presented in this report are not measures of financial performance,
financial position or cash flows defined in IFRS Accounting Standards. As these measures are not
defined in IFRS Accounting Standards, they may not be directly comparable with financial measures
used by other companies, including those in the same industry. The primary rationale for
presenting these measures is that the management uses these measures in assessing the financial
performance of Nokia and believes that these measures provide meaningful supplemental
information on the underlying business performance of Nokia. These financial measures should not
be considered in isolation from, or as a substitute for, financial information presented in
compliance with IFRS Accounting Standards.
Return on capital employed %
Return on capital employed is defined as (Profit before tax + Interest expense on interest-bearing
liabilities) / (Average capital and reserves attributable to equity holders of the parent + average
non-controlling interests + average interest-bearing liabilities).
Purpose
Return on capital employed indicates how efficiently Nokia uses its capital to generate profits.
Composition of return on capital employed %:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Profit before tax | 915 | 2 091 | 1 469 |
| Interest expense on interest-bearing liabilities | 141 | 209 | 201 |
| Total | 1 056 | 2 300 | 1 670 |
| Average capital and reserves attributable to equity holders of the parent(1) | 20 812 | 20 597 | 20 935 |
| Average non-controlling interests(1) | 91 | 91 | 92 |
| Average interest-bearing liabilities(1) | 3 650 | 4 040 | 4 334 |
| Total capital employed | 24 553 | 24 728 | 25 361 |
| Return on capital employed % | 4.3% | 9.3% | 6.6% |
(1)Calculated as the average of opening and closing balance for the year as presented in the consolidated statement of financial
position. Refer to the consolidated financial statements.
Return on shareholders’ equity %
Return on shareholders’ equity is defined as Profit/(loss) for the year attributable to equity holders
of the parent / Average capital and reserves attributable to equity holders of the parent.
Purpose
Return on shareholders’ equity indicates how efficiently Nokia uses the capital invested by its
shareholders to generate profits.
Composition of return on shareholders’ equity %:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Profit for the year attributable to equity holders of the parent | 651 | 1 277 | 665 |
| Average capital and reserves attributable to equity holders of the parent(1) | 20 812 | 20 597 | 20 935 |
| Return on shareholders’ equity % | 3.1% | 6.2% | 3.2% |
(1)Calculated as the average of opening and closing balance for the year as presented in the consolidated statement of financial
position. Refer to the consolidated financial statements.
Equity ratio %
Equity ratio % is defined as (Total capital and reserves attributable to equity holders of the parent
- non-controlling interests) / Total assets.
Purpose
Equity ratio indicates the proportion of assets financed by the capital provided by the equity
holders of the parent to the total assets of Nokia.
Composition of equity ratio %:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Total capital and reserves attributable to equity holders of the parent | 20 967 | 20 657 | 20 537 |
| Non-controlling interests | 91 | 90 | 91 |
| Shareholders’ equity | 21 058 | 20 747 | 20 628 |
| Total assets | 37 597 | 39 149 | 39 860 |
| Equity ratio % | 56.0% | 53.0% | 51.8% |
ContentsBusiness overviewCorporate governanceOperating and financial review and prospectsGeneral facts on NokiaAmerican Depositary SharesControls and proceduresGovernment regulationSales in United States-sanctioned countriesTaxationKey ratios•Alternative performance measuresFinancial statementsOther information
Total cash and interest-bearing financial investments
Total cash and interest-bearing financial investments consist of cash and cash equivalents, current
interest-bearing financial investments and non-current interest-bearing financial investments.
Purpose
Total cash and interest-bearing financial investments is used to indicate funds available to Nokia to
run its current and invest in future business activities as well as provide return for security holders.
Composition of total cash and interest-bearing financial investments:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Cash and cash equivalents | 5 462 | 6 623 | 6 234 |
| Current interest-bearing financial investments | 961 | 1 661 | 1 565 |
| Non-current interest-bearing financial investments | 368 | 457 | 715 |
| Total cash and interest-bearing financial investments | 6 791 | 8 741 | 8 514 |
Net cash and interest-bearing financial investments
Net cash and interest-bearing financial investments equals total cash and interest-bearing financial
investments less long-term and short-term interest-bearing liabilities.
Purpose
Net cash and interest-bearing financial investments is used to indicate Nokia’s liquidity position
after cash required to settle the interest-bearing liabilities.
Composition of net cash and interest-bearing financial investments:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Total cash and interest-bearing financial investments | |||
| Cash and cash equivalents | 5 462 | 6 623 | 6 234 |
| Current interest-bearing financial investments | 961 | 1 661 | 1 565 |
| Non-current interest-bearing financial investments | 368 | 457 | 715 |
| Interest-bearing liabilities | |||
| Long-term interest-bearing liabilities | (2 329) | (2 918) | (3 637) |
| Short-term interest-bearing liabilities | (1 084) | (969) | (554) |
| Net cash and interest-bearing financial investments | 3 378 | 4 854 | 4 323 |
Net debt to equity (gearing) %
Net debt to equity (gearing) % is defined as Interest-bearing liabilities less Total cash and interest-
bearing financial investments / (Total capital and reserves attributable to the equity holders of the
parent + Non-controlling interests).
Purpose
Net debt to equity ratio presents the relative proportion of shareholders’ equity and interest-
bearing liabilities used to finance Nokia’s assets and indicates the leverage of Nokia’s business.
Composition of net debt to equity (gearing) %:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Interest-bearing liabilities | |||
| Long-term interest-bearing liabilities | 2 329 | 2 918 | 3 637 |
| Short-term interest-bearing liabilities | 1 084 | 969 | 554 |
| Total cash and interest-bearing financial investments | |||
| Cash and cash equivalents | (5 462) | (6 623) | (6 234) |
| Current interest-bearing financial investments | (961) | (1 661) | (1 565) |
| Non-current interest-bearing financial investments | (368) | (457) | (715) |
| Net debt | (3 378) | (4 854) | (4 323) |
| Total capital and reserves attributable to equity holders of the parent | 20 967 | 20 657 | 20 537 |
| Non-controlling interests | 91 | 90 | 91 |
| Shareholders’ equity | 21 058 | 20 747 | 20 628 |
| Net debt to equity (gearing) % | (16.0)% | (23.4)% | (21.0)% |
Free cash flow
Free cash flow is defined as Net cash flows from operating activities less purchases of property,
plant and equipment and intangible assets (capital expenditures).
Purpose
Free cash flow is the cash that Nokia generates after investments in property, plant and equipment
and intangible assets, and we believe it provides meaningful supplemental information as it
represents the cash available to service and repay interest-bearing financial liabilities, including
lease liabilities, make investments to grow business and distribute funds to shareholders. It is a
measure of cash generation, working capital efficiency and capital discipline of the business.
Composition of free cash flow:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Net cash flows from operating activities | 2 071 | 2 493 | 1 317 |
| Purchase of property, plant and equipment and intangible assets (capital expenditures) | (606) | (472) | (652) |
| Free cash flow | 1 465 | 2 021 | 665 |
ContentsBusiness overviewCorporate governanceOperating and financial review and prospectsGeneral facts on NokiaAmerican Depositary SharesControls and proceduresGovernment regulationSales in United States-sanctioned countriesTaxationKey ratios•Alternative performance measuresFinancial statementsOther information
Capital expenditure
Purchases of property, plant and equipment and intangible assets (excluding assets acquired under
business combinations).
Purpose
Capital expenditure is used to describe investments in future profit-generating activities.
Composition of capital expenditure:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Purchase of property, plant and equipment and intangible assets | (606) | (472) | (652) |
| Capital expenditure | (606) | (472) | (652) |
Comparable operating profit
Comparable operating profit excludes intangible asset amortization and other purchase price fair
value adjustments, goodwill impairments, restructuring-related charges, transaction and related
costs, including integration costs, and certain other items affecting comparability.
Purpose
We believe that the comparable operating profit provides meaningful supplemental information
to both management and investors regarding Nokia’s underlying business performance by
excluding certain items of income and expenses that may not be indicative of Nokia’s business
operating results. Comparable operating profit is used also in determining management
remuneration.
Composition of comparable operating profit:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Operating profit(1) | 885 | 1 970 | 1 733 |
| Restructuring and associated charges | 478 | 445 | 356 |
| Amortization and depreciation of acquired intangible assets and property, plant and equipment | 444 | 314 | 341 |
| Release of acquisition-related fair value adjustments to deferred revenue and inventory | 88 | — | — |
| Provision for contractual claims | 66 | — | — |
| Transaction and related costs, including integration costs | 33 | 23 | — |
| Loss on defined benefit plan amendment | 24 | — | — |
| Disposal of businesses | 6 | (67) | (20) |
| Divestment of associates | — | (190) | — |
| Impairment and write-off of assets, net of reversals | — | 89 | 25 |
| Costs associated with country exit | — | — | (49) |
| Other⁽¹⁾ | — | — | 23 |
| Comparable operating profit(1) | 2 024 | 2 584 | 2 409 |
administrative expenses and other operating income to financial income. The comparative amounts for 2024 and 2023 have been
recast accordingly. For more information, refer to Note 1.2. General accounting policies in the consolidated financial statements.
Comparable operating margin %
Comparable operating margin is defined as Comparable operating profit / Net sales.
Purpose
Comparable operating margin is used as a measure of Nokia’s operating profitability as a
percentage of net sales excluding intangible asset amortization and other purchase price fair value
adjustments, goodwill impairments, restructuring-related charges, transaction and related costs,
including integration costs and certain other items affecting comparability.
As with comparable operating profit, we believe that the comparable operating margin provides
meaningful supplemental information to both management and investors regarding Nokia’s
underlying business performance by excluding certain items of income and expenses that may not
be indicative of Nokia’s business operating results.
Composition of comparable operating margin:
| EURm | 2025 | 2024 | 2023 |
|---|---|---|---|
| Comparable operating profit(1) | 2 024 | 2 584 | 2 409 |
| Net sales | 19 889 | 19 220 | 21 138 |
| Comparable operating margin % | 10.2% | 13.4% | 11.4% |
administrative expenses and other operating income to financial income. The comparative amounts for 2024 and 2023 have been
recast accordingly. For more information, refer to Note 1.2. General accounting policies in the consolidated financial statements.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.