ST Microelectronics - New York Shares

Q1 Performance Decline: STMicroelectronics reported a substantial decrease in Q1 2025 net revenues, which fell by 27.3% year-over-year to $2.52 billion. The gross margin also dropped from 41.7% to 33.4%, with operating margin declining to 0.1% from 15.9%. Net income plummeted 89.1% to $50 million.

Automotive Market Challenges: The automotive segment experienced lower revenues across all geographies, with a significant decline forecasted for electric vehicle production. While Q1 is expected to be the low point for automotive revenues, the company anticipates a decline against the 2024 revenue figures. This slowdown is attributed to uncertainty surrounding trade tariffs and overall car production levels.

Guidance for Q2 2025: The company expects Q2 2025 revenues to be around $2.71 billion (±350 basis points), which indicates a 16.2% decrease year-over-year but an increase of 7.7% sequentially. Gross margins are expected to remain around 33.4%, impacted by unused capacity charges and product mix.