In first quarter of 2025, stm posted revenues down 27,3% compared to the same period in 2024, with a turnover of 2,517 billion dollars, in line with expectations of the market (2,513 billion). TheNet income fell 89,1% to just $56 million. Despite the contraction, the result exceeded analysts' expectations, as well as earnings per share at $0,06, 70,7% higher than the consensus estimate ($0,04).
The accounts push the Stm title at Piazza Affari, which rises by 2,25%. The Italian-French giant also benefits from the semi-opening Trump on tariffs on China, which eases pressure on the global tech sector. However, tensions remain: France e Italy they compete for the governance of the group, with possible implications on future industrial choices and production capacity in Europe.
Stm's first quarter 2025 accounts
On the front of the marginality, gross margin fell to 33,4%, versus 41,7% in the first quarter of 2024 and 37,7% in the previous quarter. The main drivers were a less favorable product mix, lower selling prices and costs from underutilization of production capacity. Demand in the segments Automotive and Industrial remained weak, only partly balanced by the strength of the division Staff Electronics. Despite the recovery of the orders (with a book-to-bill above 1).
Il free cash flow returned to positive at $30 million, a sharp improvement from -134 million in the same period of 2024. The capital expenditure (capex) stood at $530 million, down from $967 million in the previous year. Theoperational activity generated $574 million in cash flow, against investments of $796 million.
Also the net financial position remains solid: at the end of March 2025 it was positive for 3,08 billion dollars, slightly down from 3,23 billion at the beginning of the year. The company also has liquidity of 5,96 billion and a net worth of 17,96 billion.
What to expect in Q2025 XNUMX?
Looking ahead to the second quarter, the semiconductor maker expects Net revenues of $2,71 billion, down 16,2% year-over-year, but up 7,7% sequentially. The company also said that the edge gross will be around 33,4%, with an impact of around 420 basis points due to charges from underutilization of the plants. The market consensus stops at 2,624 billion, while Intermonte estimates 2,658 billion. The forecasts are based on a exchange euro Dollar of 1,08 and include the effect of hedging contracts, but exclude the impact of possible new trade tariffs.
No guidance for 2025
In a context of strong uncertainty, Stm has chosen to do not provide full guidance for 2025, breaking with the tradition of previous years. However, the group confirms its commitment to invest between 2 and 2,3 billion dollars in capital expenditure, mainly to implement the redesign of its manufacturing structure. The aim is to optimize the cost base and improve industrial competitiveness. The restructuring program, outlined in the Capital Markets Day 2024, is progressing as planned and aims to achieve annual savings in the high hundreds of millions of dollars by 2027.
Secondo Intermonte, 2025 revenue is expected to be around 11,6 billion dollars, down 13% from 2024, with a gross margin of 36% and an EBIT forecast of 0,76 billion dollars, down 55%, equal to an operating margin of 6,6%.
Chery (ad Stm): “Low point reached”
“While we view the first quarter of 2025 as the low point, in the current context of uncertainty we are focusing on what we can control: continuing to innovate to continuously improve and make our portfolio of products and technologies increasingly competitive, focusing on advanced manufacturing and rigorously managing costs,” said the CEO. Jean-Marc Chery –. In this regard, our program to redesign the manufacturing structure and reduce the global cost base is progressing as planned and we confirm the target of cost savings on an annual basis to the end of 2027 estimated in millions of dollars in the upper triple-digit range”.
