STMicroelectronics Reports 2024 2Q Financial Results

STMicroelectronics N.V. reported U.S. GAAP financial results for the second quarter ended June 29, 2024. ST reported second quarter net revenues of $3.23 billion, gross margin of 40.1%, operating margin of 11.6%, and net income of $353 million or $0.38 diluted earnings per share.

“Q2 net revenues were above the midpoint of our business outlook range driven by higher revenues in Personal Electronics, partially offset by lower than expected revenues in Automotive,” Jean-Marc Chery, ST president and CEO, said. “Gross margin was in line with expectations.

“First half net revenues decreased 21.9% year-over-year, mainly driven by a decrease in Microcontrollers and Power and Discrete segments,” added Chery. “Operating margin was 13.8% and net income was $865 million. During the quarter, contrary to our prior expectations, customer orders for Industrial did not improve and Automotive demand declined.

“Our third quarter business outlook, at the mid-point, is for net revenues of $3.25 billion, decreasing year-over-year by 26.7% and increasing sequentially by 0.6%; gross margin is expected to be about 38%, impacted by about 350 basis points of unused capacity charges,” Chery noted. “We will now drive the company based on a plan for FY24 revenues in the range of $13.2 billion to $13.7 billion. Within this plan, we expect a gross margin of about 40%.”

Net cash from operating activities was $702 million in the second quarter compared to $1.31 billion in the year-ago quarter. Net Capex (non-U.S. GAAP) was $528 million in the second quarter compared to $1.07 billion in the year-ago quarter. Free cash flow (non-U.S. GAAP) was $159 million in the second quarter, compared to $209 million in the year-ago quarter.

ST’s net financial position (non-U.S. GAAP) was $3.20 billion as of June 29, 2024, compared to $3.13 billion as of March 30, 2024 and reflected total liquidity of $6.29 billion and total financial debt of $3.09 billion.