Financial Highlights of the First Quarter 2025
STMicroelectronics reported a net revenue of 2.52 billion USD in the first quarter of 2025, representing a significant decline of 27.3% compared to the previous year. This decline may indicate challenges in the semiconductor market that are affecting the entire industry. Despite this drop, STMicroelectronics views the first quarter of 2025 as a low point and predicts a better second quarter.
- Net Revenue: 2.52 billion USD, a decline of 27.3% compared to the previous year.
- Gross Margin: 33.4%.
- Operating Income: 3 million USD, leading to an operating margin of 0.1%, compared to 15.9% in the previous year.
- Net Income: 56 million USD, corresponding to a decline of 89.1%.
- Diluted Earnings per Share: 0.06 USD.
Outlook for the Second Quarter 2025
STMicroelectronics expects a net revenue of 2.71 billion USD for the second quarter of 2025. This would represent a decline of 16.2% compared to the previous year, but an increase of 7.7% compared to the first quarter.
Strategic Measures
The company continues to plan to maintain its capital expenditures (Capex) between 2.0 and 2.3 billion USD. Additionally, a comprehensive program to redesign the production footprint is ongoing, aiming to achieve significant multi-million dollar savings per year by 2027.
Market Context
Although the semiconductor market is currently facing challenges, STMicroelectronics’ forecast for a better second quarter may indicate a positive market development. However, investors should keep an eye on the economic conditions and competitive landscape to make informed decisions.