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Mar 29
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STMicroelectronics Q1 2025 Earnings Report
STMicroelectronics reported a sharp year-over-year decline in revenue and profit in Q1 2025 amid weakness in Automotive and Industrial segments.
Key Takeaways
STMicroelectronics faced a challenging Q1 2025 with a significant drop in revenues and net income, though Personal Electronics provided some relief. The company continues its restructuring strategy aimed at long-term efficiency gains.
Net revenues fell 27.3% year-over-year to $2.52 billion, largely due to weaker demand in Automotive and Industrial sectors.
Gross margin declined significantly to 33.4%, impacted by product mix and unused capacity charges.
Net income dropped 89.1% year-over-year to $56 million, with EPS at $0.06.
Company's restructuring plan is on track, targeting high triple-digit million-dollar annual savings by 2027.
STMicroelectronics
STMicroelectronics
STMicroelectronics Revenue by Segment
Revenue by Segment
Analog, MEMS & Sensors Revenue
CapyFin.comPower & Discrete Revenue
CapyFin.comEmbedded Processing Revenue
CapyFin.comRF & Optical Comms Revenue
CapyFin.comOthers Revenue
CapyFin.com Forward Guidance
STMicroelectronics expects sequential growth in Q2 2025, with net revenues guided at $2.71 billion and gross margin expected to remain flat at 33.4%.
Positive Outlook
- Sequential revenue growth of 7.7% expected in Q2 2025.
- Gross margin expected to remain stable at 33.4%.
- Book-to-bill ratio shows signs of recovery in key segments.
- Capex plan between $2.0–$2.3B reaffirmed to support footprint reshaping.
- Strong liquidity position with $5.96B in total liquidity.
Challenges Ahead
- Q2 revenue still projected to be down 16.2% year-over-year.
- 420 bps of unused capacity charges to impact gross margin.
- Automotive and Industrial demand uncertainty persists.
- Inventory levels remain elevated at $3.01B.
- Challenging macroeconomic environment continues to pressure margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income