STMicroelectronics Reports 2025 First Quarter Financial Results
PR No: C3332C
STMicroelectronics Reports 2025 First Quarter Financial Results
-- Q1 net revenues $2.52 billion; gross margin 33.4%; operating income $3
million; net income $56 million
-- Business outlook at mid-point: Q2 net revenues of $2.71 billion and gross
margin of 33.4%
-- Company-wide program to reshape manufacturing footprint and resize global
cost base on track; annual cost savings target in the high triple-digit
million-dollar range exiting 2027 confirmed.
Geneva, April 24, 2025 -- STMicroelectronics N.V. ("ST") $(STM)$, a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the first quarter ended March 29, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
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.
Jean-Marc Chery, ST President & CEO, commented:
-- "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. 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."
-- "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."
-- "We plan to maintain our Net Capex (non-U.S. GAAP1) plan for 2025 between
$2.0 billion and $2.3 billion mainly to execute the reshaping of our
manufacturing footprint."
-- "While we see Q1 2025 as the bottom, in the current uncertain environment
we are focusing on what we can control: keep on innovating to
continuously improve and accelerate the competitiveness of our product
and technology portfolio, focus on advanced manufacturing and tightly
manage our costs. In this respect our company-wide program to reshape ST
manufacturing footprint and resize our global cost base is on track and
we confirm the annual cost savings target in the high triple-digit
million-dollar range exiting 2027."
Quarterly Financial Summary
U.S. GAAP (US$ m, except per share data) Q1 2025 Q4 2024 Q1 2024 Q/Q Y/Y --------------------------- ------- ------- ------- ---------- ---------- Net Revenues $2,517 $3,321 $3,465 -24.2% -27.3% --------------------------- ------- ------- ------- ---------- ---------- Gross Profit $841 $1,253 $1,444 -32.9% -41.7% --------------------------- ------- ------- ------- ---------- ---------- Gross Margin 33.4% 37.7% 41.7% -430 bps -830 bps --------------------------- ------- ------- ------- ---------- ---------- Operating Income $3 $369 $551 -99.2% -99.5% --------------------------- ------- ------- ------- ---------- ---------- Operating Margin 0.1% 11.1% 15.9% -1,100 bps -1,580 bps --------------------------- ------- ------- ------- ---------- ---------- Net Income $56 $341 $513 -83.6% -89.1% --------------------------- ------- ------- ------- ---------- ---------- Diluted Earnings Per Share $0.06 $0.37 $0.54 -83.8% -88.9% --------------------------- ------- ------- ------- ---------- ----------
First Quarter 2025 Summary Review
ST made some adjustments to its segment reporting effective starting January 1, 2025. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.
Net Revenues by Reportable Segment(2) (US$ m) Q1 2025 Q4 2024 Q1 2024 Q/Q Y/Y ------------------------- --------- --------- --------- -------- -------- Analog products, MEMS and Sensors (AM&S) segment 1,069 1,348 1,406 -20.7% -23.9% ------------------------- --------- --------- --------- -------- -------- Power and discrete products (P&D) segment 397 602 631 -34.1% -37.1% ------------------------- --------- --------- --------- -------- -------- Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,466 1,950 2,037 -24.8% -28.0% ------------------------- --------- --------- --------- -------- -------- Embedded Processing $(EMP)$ segment 742 1,002 1,047 -26.0% -29.1% ------------------------- --------- --------- --------- -------- -------- RF & Optical Communications (RF&OC) segment 306 366 378 -16.5% -19.2% ------------------------- --------- --------- --------- -------- -------- Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,048 1,368 1,425 -23.4% -26.5% ------------------------- --------- --------- --------- -------- -------- Others 3 3 3 - - ------------------------- --------- --------- --------- -------- -------- Total Net Revenues $2,517 $3,321 $3,465 -24.2% -27.3% ------------------------- --------- --------- --------- -------- --------
Net revenues totaled $2.52 billion, representing a year-over-year decrease of 27.3%. Year-over-year net sales to OEMs and Distribution decreased 25.7% and 31.2%, respectively. On a sequential basis, net revenues decreased 24.2%, 20 basis points better than the mid-point of ST's guidance.
Gross profit totaled $841 million, representing a year-over-year decrease of 41.7%. Gross margin of 33.4%, 40 basis points below the mid-point of ST's guidance, decreased 830 basis points year-over-year, mainly due to product mix and, to a lesser extent, higher unused capacity charges and lower sales price.
Operating income decreased 99.5% to $3 million, compared to $551 million in the year-ago quarter. ST's operating margin decreased 1,580 basis points on a year-over-year basis to 0.1% of net revenues, compared to 15.9% in the first quarter of 2024. Excluding Impairment, restructuring charges and other related phase-out costs(3) , operating income stood at $11 million in the first quarter.
By reportable segment, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
-- Revenue decreased 23.9% mainly due to a decrease in Analog.
-- Operating profit decreased by 66.7% to $82 million. Operating margin was
7.7% compared to 17.5%.
Power and Discrete products (P&D) segment:
-- Revenue decreased 37.1%.
-- Operating profit decreased from a positive $77 million to a negative $28
million. Operating margin was -6.9% compared to 12.1%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing $(EMP.AU)$ segment:
-- Revenue decreased 29.1% mainly due to a decrease in GPAM.
-- Operating profit decreased by 71.5% to $66 million. Operating margin was
8.9% compared to 22.2%.
RF & Optical Communications (RF&OC) segment:
-- Revenue decreased 19.2%.
-- Operating profit decreased by 59.0% to $43 million. Operating margin was
13.9% compared to 27.4%.
Net income and diluted Earnings Per Share decreased to $56 million and $0.06 respectively compared to $513 million and $0.54 respectively in the year-ago quarter. Excluding Impairment, restructuring charges and other related phase-out costs net of the relevant tax impact, Net income and diluted Earnings Per Share(2) stood at $63 million and $0.07 respectively in the first quarter of 2025.
Cash Flow and Balance Sheet Highlights
Trailing 12 Months
------------- -------- -------- --------- --------------------------------
Q1 Q4 TTM
(US$ m) 2025 2024 Q1 2024 Q1 2025 Q1 2024 Change
------------- -------- -------- --------- --------- --------- ----------
Net cash
from
operating
activities 574 681 859 2,680 5,531 - 51.5%
------------- -------- -------- --------- --------- --------- ----------
Free cash
flow
(non-U.S.
GAAP(1) ) 30 128 (134) 453 1,434 - 68.4%
------------- -------- -------- --------- --------- --------- ----------
Net cash from operating activities was $574 million in the first quarter compared to $859 million in the year-ago quarter.
Net Capex (non-U.S. GAAP), was $530 million in the first quarter compared to $967 million in the year-ago quarter.
Free cash flow (non-U.S. GAAP) was positive at $30 million in the first quarter, compared to negative $134 million in the year-ago quarter.
Inventory at the end of the first quarter was $3.01 billion, compared to $2.79 billion in the previous quarter and $2.69 billion in the year-ago quarter. Days sales of inventory at quarter-end was 167 days, compared to 122 days for both the previous quarter and the year-ago quarter.
In the first quarter, ST paid cash dividends to its stockholders totaling $72 million and executed a $92 million share buy-back, as part of its current share repurchase program.
ST's net financial position (non-U.S. GAAP(4) ) remained strong at $3.08 billion as of March 29, 2025, compared to $3.23 billion as of December 31, 2024 and reflected total liquidity of $5.96 billion and total financial debt of $2.88 billion. Adjusted net financial position (non-U.S. GAAP(1) ), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.71 billion as of March 29, 2025.
Corporate developments
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.
Business Outlook
ST's guidance, at the mid-point, for the 2025 second quarter is:
-- Net revenues are expected to be $2.71 billion, an increase of 7.7%
sequentially, plus or minus 350 basis points.
-- Gross margin of 33.4%, plus or minus 200 basis points.
-- This outlook is based on an assumed effective currency exchange rate of
approximately $1.08 = EUR1.00 for the 2025 second quarter and includes
the impact of existing hedging contracts.
-- The second quarter will close on June 28, 2025.
This business outlook does not include any impact for potential further changes to global trade tariffs compared to the current situation.
Conference Call and Webcast Information
ST will conduct a conference call with analysts, investors and reporters to discuss its first quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time $(CET)$ / 3:30 a.m. U.S. Eastern Time $(ET)$. A live webcast (listen-only mode) of the conference call will be accessible at ST's website, https://investors.st.com, and will be available for replay until May 9, 2025.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP.
See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:
-- changes in global trade policies, including the adoption and expansion of
tariffs and trade barriers, that could affect the macro-economic
environment and adversely impact the demand for our products;
-- uncertain macro-economic and industry trends (such as inflation and
fluctuations in supply chains), which may impact production capacity and
end-market demand for our products;
-- customer demand that differs from projections which may require us to
undertake transformation measures that may not be successful in realizing
the expected benefits in full or at all;
-- the ability to design, manufacture and sell innovative products in a
rapidly changing technological environment;
-- changes in economic, social, public health, labor, political, or
infrastructure conditions in the locations where we, our customers, or
our suppliers operate, including as a result of macro-economic or
regional events, geopolitical and military conflicts, social unrest,
labor actions, or terrorist activities;
-- unanticipated events or circumstances, which may impact our ability to
execute our plans and/or meet the objectives of our R&D and manufacturing
programs, which benefit from public funding;
-- financial difficulties with any of our major distributors or significant
curtailment of purchases by key customers;
-- the loading, product mix, and manufacturing performance of our production
facilities and/or our required volume to fulfill capacity reserved with
suppliers or third-party manufacturing providers;
-- availability and costs of equipment, raw materials, utilities,
third-party manufacturing services and technology, or other supplies
required by our operations (including increasing costs resulting from
inflation);
-- the functionalities and performance of our IT systems, which are subject
to cybersecurity threats and which support our critical operational
activities including manufacturing, finance and sales, and any breaches
of our IT systems or those of our customers, suppliers, partners and
providers of third-party licensed technology;
-- theft, loss, or misuse of personal data about our employees, customers,
or other third parties, and breaches of data privacy legislation;
-- the impact of IP claims by our competitors or other third parties, and
our ability to obtain required licenses on reasonable terms and
conditions;
-- changes in our overall tax position as a result of changes in tax rules,
new or revised legislation, the outcome of tax audits or changes in
international tax treaties which may impact our results of operations as
well as our ability to accurately estimate tax credits, benefits,
deductions and provisions and to realize deferred tax assets;
-- variations in the foreign exchange markets and, more particularly, the
U.S. dollar exchange rate as compared to the Euro and the other major
currencies we use for our operations;
-- the outcome of ongoing litigation as well as the impact of any new
litigation to which we may become a defendant;
-- product liability or warranty claims, claims based on epidemic or
delivery failure, or other claims relating to our products, or recalls by
our customers for products containing our parts;
-- natural events such as severe weather, earthquakes, tsunamis, volcano
eruptions or other acts of nature, the effects of climate change, health
risks and epidemics or pandemics in locations where we, our customers or
our suppliers operate;
-- increased regulation and initiatives in our industry, including those
concerning climate change and sustainability matters and our goal to
become carbon neutral in all direct and indirect emissions (scopes 1 and
2), product transportation, business travel, and employee commuting
emissions (our scope 3 focus), and to achieve our 100% renewable
electricity sourcing goal by the end of 2027;
-- epidemics or pandemics, which may negatively impact the global economy in
a significant manner for an extended period of time, and could also
materially adversely affect our business and operating results;
-- industry changes resulting from vertical and horizontal consolidation
among our suppliers, competitors, and customers;
-- the ability to successfully ramp up new programs that could be impacted
by factors beyond our control, including the availability of critical
third-party components and performance of subcontractors in line with our
expectations; and
-- individual customer use of certain products, which may differ from the
anticipated uses of such products and result in differences in
performance, including energy consumption, may lead to a failure to
achieve our disclosed emission-reduction goals, adverse legal action or
additional research costs.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as "believes", "expects", "may", "are expected to", "should", "would be", "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information -- Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission ("SEC") on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Item 3. Key Information -- Risk Factors" from time to time in our Securities and Exchange Commission ("SEC") filings, could have a material adverse effect on our business and/or financial condition.
About STMicroelectronics
At ST, we are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41 22 929 59 20
jerome.ramel@st.com
MEDIA RELATIONS:
Alexis Breton
Group VP Corporate External Communications
Tel: + 33 6 59 16 79 08
alexis.breton@st.com
STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share
data ($))
Three months ended
March 29, March 30,
2025 2024
----------- -----------
(Unaudited) (Unaudited)
----------- -----------
Net sales 2,513 3,444
Other revenues 4 21
NET REVENUES 2,517 3,465
Cost of sales (1,676) (2,021)
GROSS PROFIT 841 1,444
Selling, general and administrative expenses (390) (425)
Research and development expenses (489) (528)
Other income and expenses, net 49 60
Impairment, restructuring charges and other
related phase-out costs (8) -
Total operating expenses (838) (893)
OPERATING INCOME 3 551
Interest income, net 48 59
Other components of pension benefit costs (4) (4)
Gain (loss) on financial instruments, net 25 -
INCOME BEFORE INCOME TAXES AND NONCONTROLLING
INTEREST 72 606
Income tax expense (13) (92)
----------- -----------
NET INCOME 59 514
Net income attributable to noncontrolling interest (3) (1)
----------- -----------
NET INCOME ATTRIBUTABLE TO PARENT COMPANY
STOCKHOLDERS 56 513
=========== ===========
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT
COMPANY STOCKHOLDERS 0.06 0.57
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO
PARENT COMPANY STOCKHOLDERS 0.06 0.54
NUMBER OF WEIGHTED AVERAGE SHARES USED IN
CALCULATING DILUTED EPS 933.6 942.3
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
December
As at March 29, 31, March 30,
In millions of U.S. dollars 2025 2024 2024
(Unaudited) (Audited) (Unaudited)
ASSETS
-----------------------------------------
Current assets:
Cash and cash equivalents 1,781 2,282 3,133
Short-term deposits 1,650 1,450 1,226
Marketable securities 2,528 2,452 1,880
Trade accounts receivable, net 1,385 1,749 1,787
Inventories 3,014 2,794 2,685
Other current assets 1,050 1,007 1,183
Total current assets 11,408 11,734 11,894
Goodwill 299 290 298
Other intangible assets, net 338 346 366
Property, plant and equipment, net 11,178 10,877 10,866
Non-current deferred tax assets 490 464 585
Long-term investments 96 71 22
Other non-current assets 1,114 961 942
13,515 13,009 13,079
Total assets 24,923 24,743 24,973
----------- --------- -----------
LIABILITIES AND EQUITY
-----------------------------------------
Current liabilities:
Short-term debt 988 990 238
Trade accounts payable 1,373 1,323 1,642
Other payables and accrued liabilities 1,290 1,306 1,547
Dividends payable to stockholders 16 88 6
Accrued income tax 72 66 133
Total current liabilities 3,739 3,773 3,566
Long-term debt 1,889 1,963 2,875
Post-employment benefit obligations 392 377 372
Long-term deferred tax liabilities 48 47 49
Other long-term liabilities 896 904 912
3,225 3,291 4,208
Total liabilities 6,964 7,064 7,774
Commitment and contingencies
Equity
Parent company stockholders' equity
Common stock (preferred stock:
540,000,000 shares authorized, not
issued; common stock: Euro 1.04 par
value, 1,200,000,000 shares authorized,
911,281,920 shares issued, 894,410,472
shares outstanding as of March 29,
2025) 1,157 1,157 1,157
Additional Paid-in Capital 3,142 3,088 2,931
Retained earnings 13,514 13,459 12,982
Accumulated other comprehensive income 495 236 468
Treasury stock (582) (491) (463)
----------- --------- -----------
Total parent company stockholders'
equity 17,726 17,449 17,075
Noncontrolling interest 233 230 124
Total equity 17,959 17,679 17,199
Total liabilities and equity 24,923 24,743 24,973
----------- --------- -----------
STMicroelectronics N.V.
SELECTED CASH FLOW DATA
--------------------------------------------- ------- ------- -------
Cash Flow Data (in US$ millions) Q1 2025 Q4 2024 Q1 2024
--------------------------------------------- ------- ------- -------
Net Cash from operating activities 574 681 859
--------------------------------------------- ------- ------- -------
Net Cash used in investing activities (796) (1,259) (1,254)
--------------------------------------------- ------- ------- -------
Net Cash from (used in) financing activities (282) (209) 308
--------------------------------------------- ------- ------- -------
Net Cash decrease (501) (795) (89)
--------------------------------------------- ------- ------- -------
Selected Cash Flow Data (in US$ millions) Q1 2025 Q4 2024 Q1 2024
--------------------------------------------- ------- ------- -------
Depreciation & amortization 428 451 430
--------------------------------------------- ------- ------- ------- Net payment for Capital expenditures (538) (501) (994) --------------------------------------------- ------- ------- ------- Dividends paid to stockholders (72) (88) (48) --------------------------------------------- ------- ------- ------- Change in inventories, net (172) (2) (12) --------------------------------------------- ------- ------- -------
Appendix
ST
Changes to reportable segments
Following ST's reorganization announced in January 2024 into two Product Groups and four reportable segments, we have made further progress in analyzing our global product portfolio, resulting in the following adjustments to our segments, effective starting January 1, 2025, without modifying subtotals at Product Group level:
-- In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
-- The transfer of VIPower products from Power and Discrete products
("P&D") reportable segment to Analog products, MEMS and Sensors
("AM&S") reportable segment.
-- In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
-- the newly created 'Embedded Processing' ("EMP") reportable segment
includes the former 'MCU' segment (excluding the RF ASICs
mentioned below) as well as Custom Processing products (Automotive
ADAS products).
-- the newly created 'RF & Optical Communications' ("RF&OC")
reportable segment includes the former 'D&RF' segment (excluding
Automotive ADAS products) as well as some RF ASICs which were
previously part of the former 'MCU' segment.
We believe these adjustments are critical for implementing synergies and optimizing resources, which are necessary to fully deliver the benefits expected from our new organization.
Our four reportable segments - within each Product Group - are now as follows:
-- In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
-- Analog products, MEMS and Sensors ("AM&S") reportable segment,
comprised of ST analog products (now including VIPower products),
MEMS sensors and actuators, and optical sensing solutions.
-- Power and Discrete products ("P&D") reportable segment, comprised
of discrete and power transistor products (now excluding VIPower
products).
In this Press Release, "Analog" refers to analog products, "MEMS" to MEMS sensors and actuators and "Imaging" to optical sensing solutions.
-- In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
-- Embedded Processing ("EMP") reportable segment, comprised of
general-purpose and automotive microcontrollers, connected
security products and Custom Processing Products (Automotive ADAS)
-- RF & Optical Communications ("RF&OC") reportable segment,
comprised of Space, Ranging & Connectivity products, Digital Audio
& Signaling Solutions and Optical & RF COT.
In this Press release, "GPAM" refers to General purpose & automotive microcontrollers, "Connected Security" to connected security products, "Custom Processing" to automotive ADAS products.
Prior year comparative periods have been adjusted accordingly.
(Appendix -- continued)
ST Supplemental Financial Information
Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
--------------------------------- ------- ------- ------- ------- -------
Net Revenues By Market Channel
(%)
--------------------------------- ------- ------- ------- ------- -------
Total OEM 71% 73% 76% 73% 70%
--------------------------------- ------- ------- ------- ------- -------
Distribution 29% 27% 24% 27% 30%
--------------------------------- ------- ------- ------- ------- -------
EUR/$ Effective Rate 1.06 1.09 1.08 1.08 1.09
--------------------------------- ------- ------- ------- ------- -------
Reportable Segment Data (US$ m)
--------------------------------- ------- ------- ------- ------- -------
Analog products, MEMS and Sensors
(AM&S) segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 1,069 1,348 1,340 1,336 1,406
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 82 220 216 193 246
--------------------------------- ------- ------- ------- ------- -------
Power and Discrete products (P&D)
segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 397 602 652 576 631
--------------------------------- ------- ------- ------- ------- -------
- Operating Income (28) 45 80 61 77
--------------------------------- ------- ------- ------- ------- -------
Subtotal: Analog, Power &
Discrete, MEMS and Sensors (APMS)
Product Group
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 1,466 1,950 1,992 1,912 2,037
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 54 265 296 254 323
--------------------------------- ------- ------- ------- ------- -------
Embedded Processing (EMP) segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 742 1,002 898 906 1,047
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 66 181 146 126 232
--------------------------------- ------- ------- ------- ------- -------
RF & Optical Communications
(RF&OC) segment
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 306 366 357 410 378
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 43 95 84 96 103
--------------------------------- ------- ------- ------- ------- -------
Subtotal: Microcontrollers,
Digital ICs and RF products
(MDRF) Product Group
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 1,048 1,368 1,255 1,316 1,425
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 109 276 230 222 335
--------------------------------- ------- ------- ------- ------- -------
Others (a)
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 3 3 4 4 3
--------------------------------- ------- ------- ------- ------- -------
- Operating Income (Loss) (160) (172) (145) (101) (107)
--------------------------------- ------- ------- ------- ------- -------
Total
--------------------------------- ------- ------- ------- ------- -------
- Net Revenues 2,517 3,321 3,251 3,232 3,465
--------------------------------- ------- ------- ------- ------- -------
- Operating Income 3 369 381 375 551
--------------------------------- ------- ------- ------- ------- -------
(a) Net revenues of Others include revenues from sales assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment and restructuring charges, management reorganization costs, start-up and phase out costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, as well as operating earnings of other products. Others includes:
(US$ m) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 ------------------------ ------- ------- ------- ------- ------- Unused capacity charges 123 118 104 84 63 ------------------------ ------- ------- ------- ------- -------
(Appendix -- continued)
ST Supplemental Non-U.S. GAAP Financial Information
U.S. GAAP -- Non-U.S. GAAP Reconciliation
The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP.
ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST's U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST's on-going operating results, (ii) the ability to better identify trends in ST's business and perform related trend analysis, and (iii) to facilitate a comparison of ST's results of operations against investor and analyst financial models and valuations, which may exclude these items.
Non-U.S. GAAP Net Earnings and Non-U.S. GAAP Earnings Per Share (non-U.S. GAAP measures)
Operating income before impairment and restructuring charges and one-time items is used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items, such as impairment, restructuring charges and other related phase-out costs. Adjusted net earnings and earnings per share (EPS) are used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items like impairment, restructuring charges and other related phase-out costs attributable to ST and other one-time items, net of the relevant tax impact.
Q1 2025 (US$ m, except per Operating Corresponding share data) Gross Profit Income Net Earnings Diluted EPS ---------------- -------------- ----------- -------------- --------------- U.S. GAAP 841 3 56 0.06 ---------------- -------------- ----------- -------------- --------------- Impairment, restructuring charges and other related phase-out costs - 8 8 0.01 ---------------- -------------- ----------- -------------- --------------- Estimated income tax effect - - (1) - ---------------- -------------- ----------- -------------- --------------- Non-U.S. GAAP 841 11 63 0.07 ---------------- -------------- ----------- -------------- ---------------
(Appendix -- continued)
Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures)
Net Financial Position, a non-U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet.
ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited.
Mar 29 Dec 31 Sep 28 June 29 Mar 30
(US$ m) 2025 2024 2024 2024 2024
----------------------- --------- --------- --------- --------- ---------
Cash and cash
equivalents 1,781 2,282 3,077 3,092 3,133
----------------------- --------- --------- --------- --------- ---------
Short term deposits 1,650 1,450 977 975 1,226
----------------------- --------- --------- --------- --------- ---------
Marketable securities 2,528 2,452 2,242 2,218 1,880
----------------------- --------- --------- --------- --------- ---------
Total liquidity 5,959 6,184 6,296 6,285 6,239
----------------------- --------- --------- --------- --------- ---------
Short-term debt (988) (990) (1,003) (236) (238)
----------------------- --------- --------- --------- --------- ---------
Long-term debt (a) (1,889) (1,963) (2,112) (2,850) (2,875)
----------------------- --------- --------- --------- --------- ---------
Total financial debt (2,877) (2,953) (3,115) (3,086) (3,113)
----------------------- --------- --------- --------- --------- ---------
Net Financial
Position (non-U.S.
GAAP) 3,082 3,231 3,181 3,199 3,126
----------------------- --------- --------- --------- --------- ---------
Advances received on
capital grants (377) (385) (366) (402) (351)
----------------------- --------- --------- --------- --------- ---------
Adjusted Net
Financial Position
(non-U.S. GAAP) 2,705 2,846 2,815 2,797 2,775
----------------------- --------- --------- --------- --------- ---------
(a) Long-term debt contains standard conditions but does not impose minimum financial ratios. Committed credit facilities for $618 million equivalent, are currently undrawn.
(Appendix -- continued)
Net Capex and Free Cash Flow (non-U.S. GAAP measures)
ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-U.S. GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period.
Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period.
ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies.
Q1 Q4 Q3 Q2 Q1
(US$ m) 2025 2024 2024 2024 2024
------------------------------- ------- ------- ------- ------- ---------
Payment for purchase of
tangible assets, as
reported (587) $(584.SI)$ (669) (690) (1,145)
------------------------------- ------- ------- ------- ------- ---------
Proceeds from sale of
tangible assets, as
reported 2 - 2 1 2
------------------------------- ------- ------- ------- ------- ---------
Proceeds from capital grants
and other contributions, as
reported 47 83 66 143 149
------------------------------- ------- ------- ------- ------- ---------
Advances from capital grants
allocated to property, plant
and equipment 8 31 36 18 27
------------------------------- ------- ------- ------- ------- ---------
Net Capex (non-U.S. GAAP) (530) (470) (565) (528) (967)
------------------------------- ------- ------- ------- ------- ---------
Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any.
ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations.
Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies.
Q1 Q4 Q3 Q2 Q1
(US$ m) 2025 2024 2024 2024 2024
--------------------------------- ------- ------- ------- ------- -------
Net cash from operating
activities 574 681 723 702 859
--------------------------------- ------- ------- ------- ------- -------
Net Capex (530) (470) (565) (528) (967)
--------------------------------- ------- ------- ------- ------- -------
Payment for purchase of
intangible assets, net of
proceeds from sale (14) (32) (20) (15) (26)
--------------------------------- ------- ------- ------- ------- -------
Payment for purchase of
financial assets, net of
proceeds from sale - (51) (2) - -
--------------------------------- ------- ------- ------- ------- -------
Free Cash Flow (non-U.S. GAAP) 30 128 136 159 (134)
--------------------------------- ------- ------- ------- ------- -------
(Appendix -- continued)
Financial Calendar
The financial calendar for 2025 is as follows:
March 16, 2025 -- April 24,2025: Quiet period April 24,2025: Q1 2025 Financial Results June 16, 2025 -- July 24,2025: Quiet period July 24,2025: Q2 2025 Financial Results September 16, 2025 -- October 23,2025: Quiet period October 23,2025: Q3 2025 Financial Results
These dates are preliminary and are subject to final confirmation.
(1) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(2) See Appendix for the definition of reportable segments.
(3) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
(4) Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.
Attachment
-- C3332C -Q125 Earnings PR - April 24 2025
(END) Dow Jones Newswires
April 24, 2025 01:00 ET (05:00 GMT)
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