NOKIA CORP

(1)In 2025, net sales include Optical Networks net sales of EUR 3 019 million, IP Networks net sales of EUR 2 594 million and Fixed

Networks net sales of EUR 2 373 million. In 2024, net sales include Optical Networks net sales of EUR 1 636 million, IP Networks

net sales of EUR 2 583 million and Fixed Networks net sales of EUR 2 299 million.

Network Infrastructure net sales in 2025 were EUR 7 986 million, an increase of EUR 1 468 million,

or 23%, compared to EUR 6 518 million in 2024. The acquisition of Infinera at the end of February

contributed EUR 1 273 million in net sales growth. Nokia saw growth on an organic basis in all three

of the units within Network Infrastructure while foreign exchange rate fluctuations had an

approximately 4% negative impact on net sales for Network Infrastructure.

Optical Networks net sales were EUR 3 019 million in 2025, an increase of EUR 1 383 million, or

85%, compared to EUR 1 636 million in 2024. The acquisition of Infinera at the end of February

contributed EUR 1 273 million in net sales growth. Foreign exchange rate fluctuations had an

approximately 5% negative impact on net sales. Demand increased from AI & Cloud and Mission

Critical Enterprise & Defense customers while demand from telecom providers remained largely

stable.

IP Networks net sales were EUR 2 594 million in 2025, an increase of EUR 11 million compared to

EUR 2 583 million in 2024. Foreign exchange rate fluctuations had an approximately 5% negative

impact on net sales. Net sales in IP Networks increased in 2025, as growth in sales to AI & Cloud and

Mission Critical Enterprise & Defense offset a slight decline in sales to telecom providers.

Fixed Networks net sales were EUR 2 373 million in 2025, an increase of EUR 74 million, or 3%,

compared to EUR 2 299 million in 2024. Foreign exchange rate fluctuations had an approximately

4% negative impact on net sales. The increase in Fixed Networks net sales reflected growth in the

fiber product families and fixed wireless access, offsetting some declines inproduct areas that are

being deprioritized such as Site Implementation and Outside Plant.

Network Infrastructure gross profit in 2025 was EUR 3 286 million, an increase of EUR 549 million,

or 20%, compared to EUR 2 737 million in 2024. Network Infrastructure gross margin in 2025 was

41.1%, compared to 42.0% in 2024. Gross profit increased primarily related to the acquisition of

Infinera. Gross margin declined, reflecting changes in product mix in the year.

Network Infrastructure research and development expenses were EUR 1 536 million in 2025, an

increase of EUR 329 million, or 27% compared to EUR 1 207 million in 2024. The increase in

research and development expenses reflected the acquisition of Infinera and investments in future

growth opportunities.

Network Infrastructure selling, general and administrative expenses were EUR 985 million in 2025,

an increase of EUR 170 million, or 21%, compared to EUR 815 million in 2024. The increase in

selling, general and administrative expenses largely reflected the acquisition of Infinera and

investments in sales resources for future growth opportunities.

Network Infrastructure other operating income and expenses was anincome of EUR 15 million in

2025, a change of EUR 31 million compared to anincome of EUR 46 million in 2024. The change in

other operating income and expenses was mainly due to lower proceeds from the sale of digital

assets. The other operating income was primarily related to hedging.

Network Infrastructure operating profit was EUR 780 million in 2025, an increase of EUR 19 million,

or 2%, compared to EUR 761 million in 2024. Network Infrastructure operating margin in 2025 was

9.8%, compared to 11.7% in 2024.

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