STMicroelectronics (STM) Q4 2024 earnings summary

Executive summary

• Q4 2024 net revenues were $3.32 billion, down 22.4% year-over-year but up 2.2% sequentially; full year 2024 net revenues fell 23.2% to $13.27 billion, mainly due to declines in industrial and automotive markets.

• Gross margin for Q4 was 37.7% and for the full year 39.3%, both significantly lower than 2023 due to unfavorable product mix and higher unused capacity charges.

• Net income for Q4 was $341 million, and for the full year $1.56 billion, a 63% decrease year-over-year.

• Q4 and FY 2024 results were broadly in line with guidance amid a challenging environment.

• Initiated a company-wide program to resize the global cost base and accelerate transition to advanced manufacturing.

Financial highlights

• Q4 operating margin was 11.1%, down from 23.9% a year ago; full year operating margin was 12.6%, down from 26.7% in 2023.

• Free cash flow for 2024 was $288 million, with net CapEx at $2.53 billion.

• Net cash from operating activities in 2024 was $2.97 billion, down 50.5% year-over-year.

• Q4 diluted EPS was $0.37, flat sequentially but down 67.5% year-over-year; FY2024 diluted EPS was $1.66, down 62.8%.

• Q4 inventory was $2.79 billion with 122 days sales of inventory, up from 104 days a year ago.

Outlook and guidance

• Q1 2025 revenues expected at $2.51 billion, down 27.6% year-over-year and 24.4% sequentially.

• Q1 2025 gross margin expected at 33.8%, plus or minus 200 basis points.

• Net OpEx for Q1 2025 expected at about $850 million, with annual cost savings of $100–$120 million expected in 2025 from cost-saving programs.

• CapEx for 2025 planned at $2.0–$2.3 billion.

• Visibility for the rest of 2025 remains low, with Q1 expected to be the low point; some recovery anticipated in H2 if customer programs ramp.