- Q1 net revenues $2.52 billion; gross margin 33.4%; operating income $3 million; net income $56 million
- Business outlook at mid-point: Q2 net revenues of $2.71 billion and gross margin of 33.4%
- Company-wide program to reshape manufacturing footprint and resize global cost base on track; annual cost savings target in the high triple-digit million-dollar range exiting 2027 confirmed.
April 24, 2025 – STMicroelectronics N.V. (“ST”) (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 29, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported first quarter net revenues of $2.52 billion, gross margin of 33.4%, operating income of $3 million and net income of $56 million or $0.06 diluted earnings per share.
Jean-Marc Chery, ST President & CEO, commented:
- “Q1 net revenues came in line with the midpoint of our business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial. Gross margin was slightly below the mid-point of our business outlook range mainly due to product mix.”
- “On a year-over-year basis, Q1 net revenues decreased 27.3%, operating margin decreased to 0.1% from 15.9% and net income decreased 89.1% to $56 million.”
- “In the first quarter, our book-to-bill ratio improved with both Automotive and Industrial above parity.”
- “Our second quarter business outlook, at the mid-point, is for net revenues of $2.71 billion, decreasing year-over-year by 16.2% and increasing sequentially by 7.7%; gross margin is expected to be about 33.4%, impacted by about 420 basis points of unused capacity charges.”
- “We plan to maintain our Net Capex (non-U.S. GAAP1) plan for 2025 between $2.0 billion and $2.3 billion mainly to execute the reshaping of our manufacturing footprint.”
- “While we see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio, focus on advanced manufacturing and tightly manage our costs. In this respect our company-wide program to reshape ST manufacturing footprint and resize our global cost base is on track and we confirm the annual cost savings target in the high triple-digit million-dollar range exiting 2027.”
Quarterly Financial Summary
| U.S. GAAP(US$ m, except per share data) | Q1 2025 | Q4 2024 | Q1 2024 | Q/Q | Y/Y |
| Net Revenues | $2,517 | $3,321 | $3,465 | -24.2% | -27.3% |
| Gross Profit | $841 | $1,253 | $1,444 | -32.9% | -41.7% |
| Gross Margin | 33.4% | 37.7% | 41.7% | -430 bps | -830 bps |
| Operating Income | $3 | $369 | $551 | -99.2% | -99.5% |
| Operating Margin | 0.1% | 11.1% | 15.9% | -1,100 bps | -1,580 bps |
| Net Income | $56 | $341 | $513 | -83.6% | -89.1% |
| Diluted Earnings Per Share | $0.06 | $0.37 | $0.54 | -83.8% | -88.9% |
First Quarter 2025 Summary Review
ST made some adjustments to its segment reporting effective starting January 1, 2025. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.
| Net Revenues by Reportable Segment2 (US$ m) | Q1 2025 | Q4 2024 | Q1 2024 | Q/Q | Y/Y |
| Analog products, MEMS and Sensors (AM&S) segment | 1,069 | 1,348 | 1,406 | -20.7% | -23.9% |
| Power and discrete products (P&D) segment | 397 | 602 | 631 | -34.1% | -37.1% |
| Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group | 1,466 | 1,950 | 2,037 | -24.8% | -28.0% |
| Embedded Processing (EMP) segment | 742 | 1,002 | 1,047 | -26.0% | -29.1% |
| RF & Optical Communications (RF&OC) segment | 306 | 366 | 378 | -16.5% | -19.2% |
| Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group | 1,048 | 1,368 | 1,425 | -23.4% | -26.5% |
| Others | 3 | 3 | 3 | – | – |
| Total Net Revenues | $2,517 | $3,321 | $3,465 | -24.2% | -27.3% |
Net revenues totaled $2.52 billion, representing a year-over-year decrease of 27.3%. Year-over-year net sales to OEMs and Distribution decreased 25.7% and 31.2%, respectively. On a sequential basis, net revenues decreased 24.2%, 20 basis points better than the mid-point of ST’s guidance.
Gross profit totaled $841 million, representing a year-over-year decrease of 41.7%. Gross margin of 33.4%, 40 basis points below the mid-point of ST’s guidance, decreased 830 basis points year-over-year, mainly due to product mix and, to a lesser extent, higher unused capacity charges and lower sales price.
Operating income decreased 99.5% to $3 million, compared to $551 million in the year-ago quarter. ST’s operating margin decreased 1,580 basis points on a year-over-year basis to 0.1% of net revenues, compared to 15.9% in the first quarter of 2024. Excluding Impairment, restructuring charges and other related phase-out costs3, operating income stood at $11 million in the first quarter.
By reportable segment, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
- Revenue decreased 23.9% mainly due to a decrease in Analog.
- Operating profit decreased by 66.7% to $82 million. Operating margin was 7.7% compared to 17.5%.
Power and Discrete products (P&D) segment:
- Revenue decreased 37.1%.
- Operating profit decreased from a positive $77 million to a negative $28 million. Operating margin was -6.9% compared to 12.1%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
- Revenue decreased 29.1% mainly due to a decrease in GPAM.
- Operating profit decreased by 71.5% to $66 million. Operating margin was 8.9% compared to 22.2%.
RF & Optical Communications (RF&OC) segment:
- Revenue decreased 19.2%.
- Operating profit decreased by 59.0% to $43 million. Operating margin was 13.9% compared to 27.4%.
Net income and diluted Earnings Per Share decreased to $56 million and $0.06 respectively compared to $513 million and $0.54 respectively in the year-ago quarter. Excluding Impairment, restructuring charges and other related phase-out costs net of the relevant tax impact, Net income and diluted Earnings Per Share2 stood at $63 million and $0.07 respectively in the first quarter of 2025.
Cash Flow and Balance Sheet Highlights
| Trailing 12 Months | ||||||
| (US$ m) | Q1 2025 | Q4 2024 | Q1 2024 | Q1 2025 | Q1 2024 | TTM Change |
| Net cash from operating activities | 574 | 681 | 859 | 2,680 | 5,531 | – 51.5% |
| Free cash flow (non-U.S. GAAP1) | 30 | 128 | ||||
