STMicroelectronics Forecasts Steeper Revenue Decline in Q1 2025 Amid Market Slowdown
A workers in protective suits assembling electronic components on a factory floor, the intricate and clean environment of electronics manufacturing
European semiconductor giant STMicroelectronics expects a further decline in revenue for the first quarter of 2025, citing continued weakness in industrial and automotive markets. The company forecasts Q1 2025 revenue at $2.51 billion, reflecting a 27.6% year-on-year decline, exceeding the 18.4% drop recorded in the same period last year.
CEO Jean-Marc Chery stated that the book-to-bill ratio remained below 1 in Q4, signaling a delayed market recovery and inventory corrections in industrial and automotive sectors, particularly in Europe.
This outlook is weaker than analysts’ expectations, as a poll by LSEG had projected revenue of $2.72 billion for the quarter. The decline aligns with broader industry challenges, as Texas Instruments, another key semiconductor player, also issued a lower-than-expected Q1 2025 profit forecast, citing excess inventory in automotive and industrial segments.
Despite the downturn, STMicro reported Q4 2024 net income of $341 million, surpassing analysts’ estimates of $326 million, supported by stronger demand in personal electronics.
The company also announced a reduction in capital expenditure for 2025, planning to invest between $2 billion and $2.3 billion, down from $2.53 billion in 2024 and $4 billion in 2023.
With continued market volatility and slower-than-expected recovery, STMicro is focusing on strategic cost management while maintaining investments in key growth areas.
Source: Mint
