STMicroelectronics Reports 1Q 2025 Financial Results

STMicroelectronics N.V. (ST) reported U.S. GAAP financial results for the first quarter ended March 29, 2025.

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.

“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,” said Jean-Marc Chery, ST president and CEO. “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,” Chery continued. “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.”

On April 10, 2025, ST detailed its company-wide program to reshape manufacturing footprint and resize global cost base and confirmed the annual cost savings target in the high triple-digit million-dollar range exiting 2027. Specifically, ST disclosed further elements of its program to reshape its global 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,” Chery concluded. “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.”