24.04.2025

STMicroelectronics Q1 2025: Challenges and Outlook

STMicroelectronics has announced its financial results for the first quarter of 2025, highlighting some interesting aspects. The key points are summarized below.

Financial Results

  • Net Revenue: The company reported net revenues of 2.52 billion USD, representing a significant decrease of 27.3% compared to the previous year.
  • Gross Margin: The gross margin was 33.4%.
  • Operating Income: The operating income amounted to 3 million USD, indicating a substantial decline in the operating margin to 0.1%, compared to 15.9% last year.
  • Net Income: The net income was 56 million USD, corresponding to a profit of 0.06 USD per diluted share, a decrease of 89.1% compared to the previous year.

Segment Performance

In the RF & Optical Communications (RF&OC) segment, revenues fell by 19.2%, while operating profit dropped by 59.0% to 43 million USD. The operating margin was 13.9% compared to 27.4% last year.

Outlook

  • Q2 2025 Forecast: The company expects net revenues of 2.71 billion USD, representing a decline of 16.2% compared to the previous year, but an increase of 7.7% from the first quarter.
  • Investment Plan: The net investment plan for 2025 remains at 2.0 to 2.3 billion USD. The company plans restructuring for cost savings in the three-digit million range by 2027.

Despite declining revenues, STMicroelectronics continues to demonstrate its strength in the technology sector, particularly in semiconductors, but must tackle challenges in a changing market.