St Microelectronics ended 2025 with a drop in net profit, and the title a Business Square ha canceled i initial earnings, ending up at the bottom of the list. After an upward opening (+4%) supported by the prospects of recovery of the chip question and cost-optimization measures, the shares quickly fell. The company warned that the restructuring costs will also recur in 2026, after having already incurred charges of 141 million dollars in the fourth quarter.
2025 Budget: Profits in free fall, revenues falling
During 2025, the Italian-French giant recorded revenues for 11,75 billion euros, down 11,1% from 13,27 billion the previous year, in line with the company's expectations. Gross profit stood at 4 billion euros, down 23%, with a marginality of 33,9%, slightly above the 33,8% estimated at the beginning of the year. Net profit for the year fell sharply to 180 million euros, from 1,56 billion in 2024, while earnings per share fell from 1,73 dollars to 0,19 dollars, highlighting the pressure on margins and the impact of extraordinary charges.
La net financial position Stm's revenue remains positive at $2,79 billion at the end of the year, slightly lower than the $3,23 billion at the beginning of 2025.
Fourth quarter: net loss, but revenues above expectations
Il fourth quarter 2025 has shown signs of recovery in revenues, which reached $3,33 billion, up 0,2% year-over-year and 4,5% compared to the previous quarter, exceeding expectations of $3,28 billion. However, margins fell to 35,2%, from 37,7% in the same period of 2024, due to negative effects on the euro-dollar exchange rate and lower production efficiencies. Restructuring costs and $141 million in impairment charges led STM to close the quarter with a net loss of $30 million (just over $25 million in euros), compared to a profit of $34 million in the same period of the previous year.
The segment Personal Electronics contributed positively to the revenue growth of the quarter, while the sector Automotive continued to disappoint expectations. Operating activities generated cash flow of $674 million in the fourth quarter, with capital expenditures totaling $271 million in the quarter. The CEO Jean-Marc Chery He stressed that the quarter's results represent a return to year-on-year growth, with margins above expectations despite the market difficulties.
STM 2026 Outlook: Revenues, Margins, and Investments
For first quarter 2026, Stm provides revenues of approximately 3,04 billion of euros, down 8,7% compared to the same period in 2025, with a marginality Estimated at around 33,7%, impacted by approximately 220 basis points of underutilization of production capacity. The assumed euro/dollar exchange rate is 1,16, including the effects of currency hedging contracts.
For the whole of 2026, the company confirms investments in capex between 2 and 2,2 billion dollars, intended to support technological innovation, optimize production and contain global costs. The chip giant has also planned a program of voluntary job cuts of up to 2.800 jobs by 2027, with estimated savings of between $300 million and $360 million annually, supporting the company's efficiency strategy.
Last updated Thursday, January 29, 2026, at 13:50 PM
