Finance
Chipmaker STMicro reports second-quarter loss, hit by restructuring costs
Published by Global Banking & Finance Review®
Posted on July 24, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 24, 2025
2 min readLast updated: January 22, 2026
STMicroelectronics reported a $133 million Q2 loss due to restructuring costs, missing profit expectations. Revenue rose to $2.76 billion, exceeding targets.
AMSTERDAM (Reuters) -STMicroelectronics reported a second-quarter loss on Thursday, a performance that was worse than market expectations and hit by restructuring costs.
The company, one of Europe's largest chipmakers, last year unveiled a cost-cutting plan to restructure its manufacturing facilities and save hundreds of millions of dollars by 2027. The plans included cutting 5,000 jobs in France and Italy over the next three years.
The Franco-Italian chipmaker, which makes power chips for Tesla's drivetrains and eSim modules for Apple's iPhones, posted a loss of $133 million for the quarter, missing the average $56.2 million profit expected by analysts in an LSEG poll.
The operating loss included a $190 million impairment, restructuring charges and other costs for the quarter, STMicro said in a statement. Without the restructuring and impairment costs, ST Micro said its profits would have reached $57 million.
Chipmakers exposed to the struggling automotive, industrial, and consumer chip markets like STMicro, Texas Instruments , or NXP have faced a sales slump, due to low demand, high inventories, and geopolitical disruptions.
STMicro had said after the first quarter that it was too early to guide on expectations for 2025, as it focused on destocking inventories that had piled up at chipmakers exposed to the ailing automotive, industrial, and consumer electronics markets.
In June, STMicro said it saw the early signs of an upcycle - a period of increased market demand - which would allow it to achieve its second-quarter revenue goal of $2.71 billion.
Revenue rose to $2,76 billion from $2,52 billion in the second quarter, ahead of that target. STMicro said it is now expecting revenue in the third-quarter to reach $3.17 billion, ahead of analysts expectations of $3.10 billion.
(Reporting by Nathan Vifflin in Amsterdam; Editing by Matt Scuffham)
STMicroelectronics posted a loss of $133 million for the quarter, which was worse than market expectations.
The loss was primarily attributed to restructuring costs, including a $190 million impairment and other charges.
Revenue rose to $2.76 billion from $2.52 billion in the second quarter, exceeding the company's target.
STMicro is expecting third-quarter revenue to reach $3.17 billion, which is ahead of analysts' expectations.
Chipmakers are facing a sales slump due to low demand, high inventories, and geopolitical issues affecting the automotive and industrial markets.
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