Leases

12 Months Ended

Dec. 31, 2025

Presentation of leases for lessee [abstract]

Leases

4.3. Leases

Accounting policies

In the majority of its lease agreements, Nokia is acting as a

lessee. Nokia’s leased assets relate mostly to commercial

and industrial properties such as R&D, production and

office facilities. Nokia also leases vehicles provided as

employee benefits and service vehicles. There are only

minor lease contracts, mainly concerning subleases of

vacant leasehold or freehold facilities, where Nokia is

acting as a lessor.

As a lessee, Nokia recognizes a right-of-use asset and a

lease liability at the commencement date of the lease.

Right-of-use assets are measured at cost less

accumulated depreciation and impairment losses, and

adjusted for any remeasurements of the lease liabilities.

Right-of-use assets are depreciated on a straight-line

basis over the lease term as follows:

Buildings	3–22 years
Other	3–5 years

Lease liabilities are initially measured at the present value

of the lease payments made over the lease term. Nokia

uses its incremental borrowing rate to calculate the

present value as the interest rate implicit in the lease is

not readily determinable. Subsequently, lease liabilities are

measured on an amortized cost basis using the effective

interest method. In addition, lease liabilities are

remeasured if there is a lease modification, a change in

the lease term or a change in the future lease payments.

The interest component of the lease payments is

recognized as interest expense in financial expenses.

Nokia applies practical expedients whereby the payments

for short-term leases and leases of low-value assets are

recognized as an operating expense on a straight-line

basis over the lease term. In addition, Nokia does not

separate certain non-lease components from lease

components but instead accounts for each lease

component and associated non-lease component as a

single lease component.

Right-of-use assets

EURm	Buildings	Other	Total
2025
Acquisition cost at 1 January	1 422	286	1 708
Additions(1)	280	83	363
Acquisitions through business combinations	57	—	57
Retirements	(50)	(59)	(109)
Translation differences	(76)	(9)	(85)
Acquisition cost at 31 December	1 633	301	1 934
Accumulated depreciation at 1 January	(813)	(137)	(950)
Depreciation	(133)	(82)	(215)
Retirements	50	55	105
Translation differences	42	4	46
Accumulated depreciation at 31 December	(854)	(160)	(1 014)
Net book value at 1 January	609	149	758
Net book value at 31 December	779	141	920
2024
Acquisition cost at 1 January	1 434	275	1 709
Additions(1)	36	95	131
Assets held for sale	(25)	(47)	(72)
Retirements	(48)	(38)	(86)
Translation differences	25	1	26
Acquisition cost at 31 December	1 422	286	1 708
Accumulated depreciation at 1 January	(677)	(126)	(803)
Depreciation	(135)	(88)	(223)
Impairment	(43)	—	(43)
Assets held for sale	4	40	44
Retirements	48	38	86
Translation differences	(10)	(1)	(11)
Accumulated depreciation at 31 December	(813)	(137)	(950)
Net book value at 1 January	757	149	906
Net book value at 31 December	609	149	758

(1)Additions comprise new lease contracts as well as modifications and

remeasurements of existing lease contracts.

Amounts recognized in the income statement

EURm	2025	2024	2023
Depreciation of right-of-use assets(1)	(215)	(223)	(216)
Interest expense on lease liabilities(1)	(35)	(33)	(28)
Impairment charges, net of reversals	—	(43)	2
Total	(250)	(299)	(242)

(1)In 2024 and 2023, amounts comprise both continuing and discontinued

operations.

Amounts recognized in the income statement presented above

exclude expenses relating to short-term leases and leases of

low-value assets and income from subleasing right-of-use

assets as these are immaterial.

Amounts reported in the statement of cash

flows

EURm	2025	2024	2023
Payment of principal portion of lease liabilities(1)	(221)	(233)	(239)
Interest paid on lease liabilities(1)	(35)	(33)	(28)
Total	(256)	(266)	(267)

(1)In 2024 and 2023, amounts comprise both continuing and discontinued

operations.

Amounts reported in the statement of cash flows exclude

payments for short-term leases and leases of low-value assets.

The maturity analysis of lease liabilities is presented in Note 5.4.

Financial risk management. Commitments related to future

lease contracts are presented in Note 6.1. Commitments,

contingencies and legal proceedings.