STMicroelectronics Forecasts Further Revenue Decline in Q1 2025

Revenue Projection Falls Below Expectations

STMicroelectronics, one of Europe’s largest semiconductor manufacturers, expects first-quarter 2025 revenue of $2.51 billion, marking a 27.6% year-over-year decline from the $3.47 billion reported in the same period last year. This figure also falls short of analyst estimates of $2.72 billion.

Investor Concerns Over Lack of Full-Year Guidance

Market analysts expressed concern over STMicro’s decision not to provide full-year revenue guidance. Some attribute this to low visibility in the industrial sector, which remains weak.

Semiconductor Market Challenges Continue

The broader semiconductor industry is experiencing ongoing difficulties. Texas Instruments, a key industry benchmark, also issued a weak forecast for the first quarter, citing inventory build-ups in automotive and industrial markets.

Fourth-Quarter Performance and Earnings

Despite the challenging outlook, STMicro reported fourth-quarter net income of $341 million, slightly surpassing analyst projections of $326 million. Growth in personal electronics revenue helped offset declines in the industrial segment.

Capital Expenditure Plans for 2025

STMicro outlined its capital expenditure plans for 2025, budgeting between $2 billion and $2.3 billion. This represents a reduction from $2.53 billion in 2024 and $4 billion in 2023, signaling a cautious investment approach amid market uncertainty.

“STMicroelectronics Forecasts Further Revenue Decline in Q1 2025”