ST(US:STM)2025-05-05 20:16Financial Performance - STMicroelectronics reported Q1 2025 net revenues of $2.52 billion, a decrease of 27.3% year-over-year[6]. - Gross margin for Q1 2025 was 33.4%, down 830 basis points from 41.7% in Q1 2024[6]. - Operating income fell to $3 million, a 99.5% decrease compared to $551 million in the same quarter last year[11]. - Net income decreased to $56 million, down 89.1% from $513 million in Q1 2024, resulting in diluted earnings per share of $0.06[6]. - Total net revenues for Q1 2025 were $2,517 million, a decrease of 24% compared to $3,321 million in Q4 2024[43]. - Free Cash Flow for Q1 2025 was $30 million, a decrease from $128 million in Q4 2024[62]. - Non-U.S. GAAP net earnings for Q1 2025 were $63 million, with diluted EPS of $0.07, compared to $56 million and $0.06 in U.S. GAAP[49]. Revenue Expectations - The company expects Q2 2025 net revenues to be $2.71 billion, a sequential increase of 7.7% but a year-over-year decrease of 16.2%[22]. Cost Management - STMicroelectronics confirmed an annual cost savings target in the high triple-digit million-dollar range by the end of 2027 as part of its manufacturing footprint reshaping program[7]. Cash Flow and Liquidity - Net cash from operating activities was $574 million in Q1 2025, down 51.5% from $859 million in Q1 2024[15]. - Cash and cash equivalents decreased to $1,781 million from $3,133 million year-over-year[35]. - The company’s net financial position as of March 29, 2025, was $3,082 million, down from $3,231 million at the end of Q4 2024[53]. - Total liquidity decreased to $5,959 million in Q1 2025 from $6,184 million in Q4 2024[53]. Inventory and Capital Expenditures - Inventory at the end of Q1 2025 was $3.01 billion, an increase from $2.69 billion in the year-ago quarter[17]. - The company plans to maintain its net capital expenditures between $2.0 billion and $2.3 billion for 2025[7]. Environmental Goals - The company aims to achieve 100% renewable electricity sourcing by the end of 2027[31]. - STMicroelectronics is on track to be carbon neutral in all direct and indirect emissions by 2027[31]. Segment Performance - The Analog products, MEMS and Sensors segment reported net revenues of $1,069 million, down from $1,348 million in Q4 2024, with an operating income of $82 million[43]. - The Power and Discrete products segment experienced a net revenue decline to $397 million from $602 million in Q4 2024, resulting in an operating loss of $28 million[43]. - Embedded Processing segment net revenues fell to $742 million from $1,002 million in Q4 2024, with operating income decreasing to $66 million[43]. - The RF & Optical Communications segment reported net revenues of $306 million, down from $366 million in Q4 2024, with operating income of $43 million[43]. Capacity Charges - The company incurred unused capacity charges of $123 million in Q1 2025, compared to $118 million in Q4 2024[43].