PR No: C3364C
STMicroelectronics Reports 2025 Third Quarter Financial Results
-- Q3 net revenues $3.19 billion; gross margin 33.2%; operating income of
$180 million, including $37 million related to impairment, restructuring
charges and other related phase-out costs; net income of $237 million
-- Business outlook at mid-point: Q4 net revenues of $3.28 billion and gross
margin of 35.0%
Geneva, October 23, 2025 -- STMicroelectronics N.V. ("ST") $(STM)$, a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the third quarter ended September 27, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).
ST reported third quarter net revenues of $3.19 billion, gross margin of 33.2%, operating income of $180 million, and net income of $237 million or $0.26 diluted earnings per share (non-U.S. GAAP(1) operating income of $217 million, and non-U.S. GAAP(1) net income of $267 million or $0.29 diluted earnings per share).
Jean-Marc Chery, ST President & CEO, commented:
-- "Q3 net revenues came slightly above the mid-point of our business
outlook range, with higher revenues in Personal Electronics, while
Automotive and Industrial performed as anticipated, and CECP was broadly
in line with expectations. Gross margin was slightly below the mid-point
of our business outlook range mainly due to product mix within Automotive
and Industrial."
-- "On a year-over-year basis, Q3 net revenues decreased 2.0%, non-U.S.
GAAP1 operating margin decreased to 6.8% from 11.7% and non-U.S. GAAP1
net income decreased to $267 million from $351 million."
-- "In the third quarter, our book-to-bill ratio was above one, with
Automotive above parity and Industrial at parity."
-- "Our fourth quarter business outlook, at the mid-point, is for net
revenues of $3.28 billion, increasing sequentially by 2.9%, gross margin
is expected to be about 35.0%; including about 290 basis points of unused
capacity charges."
-- "The mid-point of this outlook translates into full year 2025 revenues of
about $11.75 billion. This represents a 22.4% growth in the second half
compared to the first half, confirming signs of market recovery. Gross
margin is expected to be about 33.8%."
-- To optimize our investments in response to the current market conditions,
we have reduced our Net Capex plan, now slightly below $2 billion for
FY25."
-- "Our strategic priorities remain clear: accelerating innovation;
executing our company-wide program to reshape our manufacturing footprint
and resize our global cost base, which remains on schedule to deliver the
targeted savings; and strengthening free cash flow generation."
Quarterly Financial Summary
U.S. GAAP (US$ m, except per share data) Q3 2025 Q2 2025 Q3 2024 Q/Q Y/Y ------------------------------ ------- ------- ------- --------- -------- Net Revenues $3,187 $2,766 $3,251 15.2% -2.0% ------------------------------ ------- ------- ------- --------- -------- Gross Profit $1,059 $926 $1,228 14.3% -13.7% ------------------------------ ------- ------- ------- --------- -------- Gross Margin 33.2% 33.5% 37.8% -30 bps -460 bps ------------------------------ ------- ------- ------- --------- -------- Operating Income (Loss) $180 $(133) $381 - -52.9% ------------------------------ ------- ------- ------- --------- -------- Operating Margin 5.6% -4.8% 11.7% 1,040 bps -610 bps ------------------------------ ------- ------- ------- --------- -------- Net Income (Loss) $237 $(97) $351 - -32.3% ------------------------------ ------- ------- ------- --------- -------- Diluted Earnings Per Share $0.26 $(0.11) $0.37 - -29.7% ------------------------------ ------- ------- ------- --------- -------- Non-U.S. GAAP1 (US$ m, except per share data) Q3 2025 Q2 2025 Q3 2024 Q/Q Y/Y ------------------------------ ------- ------- ------- --------- -------- Operating Income $217 $57 $381 278.8% -43.2% ------------------------------ ------- ------- ------- --------- -------- Operating Margin 6.8% 2.1% 11.7% 470 bps -490 bps ------------------------------ ------- ------- ------- --------- -------- Net Income $267 $57 $351 369.1% -23.9% ------------------------------ ------- ------- ------- --------- -------- Diluted Earnings Per Share $0.29 $0.06 $0.37 383.3% -21.6% ------------------------------ ------- ------- ------- --------- --------
Third Quarter 2025 Summary Review
Reminder: on January 1, 2025, we made some adjustments to our segment reporting. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail.
Net Revenues by Reportable Segment(2) (US$ m) Q3 2025 Q2 2025 Q3 2024 Q/Q Y/Y -------------------------- --------- --------- --------- ------- -------- Analog products, MEMS and Sensors (AM&S) segment 1,434 1,133 1,340 26.6% 7.0% -------------------------- --------- --------- --------- ------- -------- Power and discrete products (P&D) segment 429 447 652 -4.3% -34.3% -------------------------- --------- --------- --------- ------- -------- Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,863 1,580 1,992 17.9% -6.5% -------------------------- --------- --------- --------- ------- -------- Embedded Processing $(EMP)$ segment 976 847 898 15.3% 8.7% -------------------------- --------- --------- --------- ------- -------- RF & Optical Communications (RF&OC) segment 345 336 357 2.4% -3.4% -------------------------- --------- --------- --------- ------- -------- Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,321 1,183 1,255 11.6% 5.3% -------------------------- --------- --------- --------- ------- -------- Others 3 3 4 - - -------------------------- --------- --------- --------- ------- -------- Total Net Revenues $3,187 $2,766 $3,251 15.2% -2.0% -------------------------- --------- --------- --------- ------- --------
Net revenues totaled $3.19 billion, representing a year-over-year decrease of 2.0%. Year-over-year net sales to OEMs and Distribution decreased 5.1% and increased 7.6%, respectively. On a sequential basis, net revenues increased 15.2%, 60 basis points better than the mid-point of ST's guidance.
Gross profit totaled $1.06 billion, representing a year-over-year decrease of 13.7%. Gross margin of 33.2%, 30 basis points below the mid-point of ST's guidance, decreased 460 basis points year-over-year, mainly due to lower manufacturing efficiencies, negative currency effect, lower level of capacity reservation fees and, to a lesser extent, the combination of sale price and product mix.
Operating income decreased from $381 million in the year-ago quarter to $180 million. ST's operating margin decreased 610 basis points on a year-over-year basis to 5.6% of net revenues, compared to 11.7% in the third quarter of 2024. Operating income included $37 million impairment, restructuring charges and other related phase-out costs for the quarter, reflecting impairment of assets and restructuring charges predominantly associated with the previously announced company-wide program to reshape our manufacturing footprint and resize our global cost base. Excluding these items, non-U.S. GAAP(1) Operating income stood at $217 million in the third quarter.
By reportable segment, compared with the year-ago quarter:
In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group:
Analog products, MEMS and Sensors (AM&S) segment:
-- Revenue increased 7.0% mainly due to Imaging.
-- Operating profit increased by 2.1% to $221 million. Operating margin was
15.4% compared to 16.1%.
Power and Discrete products (P&D) segment:
-- Revenue decreased 34.3%.
-- Operating profit decreased from $80 million to an operating loss of $67
million. Operating margin was -15.6% compared to 12.2%.
In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:
Embedded Processing (EMP) segment:
-- Revenue increased 8.7% mainly due to General Purpose MCU.
-- Operating profit increased by 9.4% to $161 million. Operating margin was
16.5% compared to 16.4%.
RF & Optical Communications (RF&OC) segment:
-- Revenue decreased 3.4%.
-- Operating profit decreased by 31.6% to $57 million. Operating margin was
16.6% compared to 23.4%.
Net Earnings and diluted Earnings Per Share decreased to $237 million and $0.26 respectively, compared to $351 million and $0.37 respectively in the year-ago quarter. Non-U.S. GAAP(1) Net income and diluted Earnings Per Share, stood at $267 million and $0.29 respectively in the third quarter of 2025.
Cash Flow and Balance Sheet Highlights
Trailing 12 Months
--------------------- ------- ------- ------- ----------------------------
(US$ m) Q3 2025 Q2 2025 Q3 2024 Q3 2025 Q3 2024 TTM Change
--------------------- ------- ------- ------- ------- ------- ----------
Net cash from
operating
activities 549 354 723 2,158 3,764 -42.7%
--------------------- ------- ------- ------- ------- ------- ----------
Free cash flow
(non-U.S. GAAP(1)
) 130 (152) 136 136 813 -83.3%
--------------------- ------- ------- ------- ------- ------- ----------
Net cash from operating activities was $549 million in the third quarter compared to $723 million in the year-ago quarter.
Net Capex (non-U.S. GAAP(1) ), was $401 million in the third quarter compared to $565 million in the year-ago quarter.
Free cash flow (non-U.S. GAAP(1) ) was positive $130 million in the third quarter, compared to positive $136 million in the year-ago quarter.
Inventory at the end of the third quarter was $3.17 billion, compared to $3.27 billion in the previous quarter and $2.88 billion in the year-ago quarter. Days sales of inventory at quarter-end was 135 days, compared to 166 days for the previous quarter and 130 days for the year-ago quarter.
In the third quarter, ST paid cash dividends to its stockholders totaling $81 million and executed a $91 million share buy-back, as part of its current share repurchase program.
ST's net financial position (non-U.S. GAAP(4) ) remained strong at $2.61 billion as of September 27, 2025, compared to $2.67 billion as of June 28, 2025, and reflected total liquidity(2) of $4.78 billion and total financial debt of $2.17 billion. Adjusted net financial position (non-U.S. GAAP(1) ), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.27 billion as of September 27, 2025.
Corporate developments
On July 24, 2025, ST entered into a definitive transaction agreement for the acquisition of NXP's MEMS sensor business for a purchase price of up to $950 million in cash, including $900 million upfront and $50 million subject to the achievement of technical milestones. The transaction which will be financed with existing liquidity is subject to customary closing conditions, including regulatory approvals, and is expected to close in H1 2026.
Business Outlook
ST's guidance, at the mid-point, for the 2025 fourth quarter is:
-- Net revenues are expected to be $3.28 billion, an increase of 2.9%
sequentially, plus or minus 350 basis points.
-- Gross margin of 35.0%, plus or minus 200 basis points.
-- This outlook is based on an assumed effective currency exchange rate of
approximately $1.15 = EUR1.00 for the 2025 fourth quarter and includes
the impact of existing hedging contracts.
-- The fourth quarter will close on December 31, 2025.
This business outlook does not include any impact of potential further changes to global trade tariffs compared to the current situation.
Conference Call and Webcast Information
ST will conduct a conference call with analysts, investors and reporters to discuss its third quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time $(CET)$ / 3:30 a.m. U.S. Eastern Time $(ET)$. A live webcast (listen-only mode) of the conference call will be accessible at ST's website, https://investors.st.com, and will be available for replay until November 7, 2025.
Use of Supplemental Non-U.S. GAAP Financial Information
This press release contains supplemental non-U.S. GAAP financial information.
Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP.
See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures.
Forward-looking Information
Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:
-- changes in global trade policies, including the adoption and expansion of
tariffs and trade barriers, that could affect the macro-economic
environment and directly or indirectly adversely impact the demand for
our products;
-- uncertain macro-economic and industry trends (such as inflation and
fluctuations in supply chains), which may impact production capacity and
end-market demand for our products;
-- customer demand that differs from projections which may require us to
undertake transformation measures that may not be successful in realizing
the expected benefits in full or at all;
-- the ability to design, manufacture and sell innovative products in a
rapidly changing technological environment;
-- changes in economic, social, public health, labor, political, or
infrastructure conditions in the locations where we, our customers, or
our suppliers operate, including as a result of macro-economic or
regional events, geopolitical and military conflicts, social unrest,
labor actions, or terrorist activities;
-- unanticipated events or circumstances, which may impact our ability to
execute our plans and/or meet the objectives of our R&D and manufacturing
programs, which benefit from public funding;
-- financial difficulties with any of our major distributors or significant
curtailment of purchases by key customers;
-- the loading, product mix, and manufacturing performance of our production
facilities and/or our required volume to fulfill capacity reserved with
suppliers or third-party manufacturing providers;
-- availability and costs of equipment, raw materials, utilities,
third-party manufacturing services and technology, or other supplies
required by our operations (including increasing costs resulting from
inflation);
-- the functionalities and performance of our IT systems, which are subject
to cybersecurity threats and which support our critical operational
activities including manufacturing, finance and sales, and any breaches
of our IT systems or those of our customers, suppliers, partners and
providers of third-party licensed technology;
-- theft, loss, or misuse of personal data about our employees, customers,
or other third parties, and breaches of data privacy legislation;
-- the impact of IP claims by our competitors or other third parties, and
our ability to obtain required licenses on reasonable terms and
conditions;
-- changes in our overall tax position as a result of changes in tax rules,
new or revised legislation, the outcome of tax audits or changes in
international tax treaties which may impact our results of operations as
well as our ability to accurately estimate tax credits, benefits,
deductions and provisions and to realize deferred tax assets;
-- variations in the foreign exchange markets and, more particularly, the
U.S. dollar exchange rate as compared to the Euro and the other major
currencies we use for our operations;
-- the outcome of ongoing litigation as well as the impact of any new
litigation to which we may become a defendant;
-- product liability or warranty claims, claims based on epidemic or
delivery failure, or other claims relating to our products, or recalls by
our customers for products containing our parts;
-- natural events such as severe weather, earthquakes, tsunamis, volcano
eruptions or other acts of nature, the effects of climate change, health
risks and epidemics or pandemics in locations where we, our customers or
our suppliers operate;
-- increased regulation and initiatives in our industry, including those
concerning climate change and sustainability matters and our goal to
become carbon neutral in all direct and indirect emissions (scopes 1 and
2), product transportation, business travel, and employee commuting
emissions (our scope 3 focus), and to achieve our 100% renewable
electricity sourcing goal by the end of 2027;
-- epidemics or pandemics, which may negatively impact the global economy in
a significant manner for an extended period of time, and could also
materially adversely affect our business and operating results;
-- industry changes resulting from vertical and horizontal consolidation
among our suppliers, competitors, and customers;
-- the ability to successfully ramp up new programs that could be impacted
by factors beyond our control, including the availability of critical
third-party components and performance of subcontractors in line with our
expectations; and
-- individual customer use of certain products, which may differ from the
anticipated uses of such products and result in differences in
performance, including energy consumption, may lead to a failure to
achieve our disclosed emission-reduction goals, adverse legal action or
additional research costs.
Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as "believes", "expects", "may", "are expected to", "should", "would be", "seeks" or "anticipates" or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.
Some of these risk factors are set forth and are discussed in more detail in "Item 3. Key Information -- Risk Factors" included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission ("SEC") on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under "Item 3. Key Information -- Risk Factors" from time to time in our SEC filings, could have a material adverse effect on our business and/or financial condition.
About STMicroelectronics
At ST, we are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at www.st.com.
For further information, please contact:
INVESTOR RELATIONS:
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41 22 929 59 20
jerome.ramel@st.com
MEDIA RELATIONS:
Alexis Breton
Corporate External Communications
Tel: + 33 6 59 16 79 08
alexis.breton@st.com
STMicroelectronics
N.V.
CONSOLIDATED
STATEMENTS OF
INCOME
(in millions of
U.S. dollars,
except per share
data ($))
Three months ended
September
September 27, 28,
2025 2024
---------------------------- ---------------------------
(Unaudited) (Unaudited)
---------------------------- ---------------------------
Net sales 3,183 3,245
Other revenues 4 6
NET REVENUES 3,187 3,251
Cost of sales (2,128) (2,023)
GROSS PROFIT 1,059 1,228
Selling, general
and administrative
expenses (395) (385)
Research and
development
expenses (502) (492)
Other income and
expenses, net 55 30
Impairment,
restructuring
charges and other
related phase-out
costs (37) -
Total operating
expenses (879) (847)
OPERATING INCOME 180 381
Interest income,
net 38 55
Other components of
pension benefit
costs (4) (4)
Gain on financial
instruments, net 79 -
INCOME BEFORE
INCOME TAXES AND
NONCONTROLLING
INTEREST 293 432
Income tax expense (54) (71)
---------------------------- ---------------------------
NET INCOME 239 361
Net income
attributable to
noncontrolling
interest (2) (10)
---------------------------- ---------------------------
NET INCOME
ATTRIBUTABLE TO
PARENT COMPANY
STOCKHOLDERS 237 351
============================ ===========================
EARNINGS PER SHARE
(BASIC)
ATTRIBUTABLE TO
PARENT COMPANY
STOCKHOLDERS 0.27 0.39
EARNINGS PER SHARE
(DILUTED)
ATTRIBUTABLE TO
PARENT COMPANY
STOCKHOLDERS 0.26 0.37
NUMBER OF WEIGHTED
AVERAGE SHARES
USED IN
CALCULATING
DILUTED EPS 918.9 938.6
---------------------------
STMicroelectronics
N.V.
CONSOLIDATED
STATEMENTS OF
INCOME
(in millions of
U.S. dollars,
except per share
data ($))
Nine months ended
September 27, September 28,
2025 2024
---------------------------- ---------------------------
(Unaudited) (Unaudited)
---------------------------- ---------------------------
Net sales 8,440 9,915
Other revenues 30 32
NET REVENUES 8,470 9,947
Cost of sales (5,643) (5,980)
GROSS PROFIT 2,827 3,967
Selling, general
and administrative
expenses (1,205) (1,229)
Research and
development
expenses (1,506) (1,554)
Other income and
expenses, net 169 123
Impairment,
restructuring
charges and other
related phase-out
costs (235) -
Total operating
expenses (2,777) (2,660)
OPERATING INCOME 50 1,307
Interest income,
net 131 166
Other components of
pension benefit
costs (13) (12)
Gain (loss) on
financial
instruments, net 85 (1)
INCOME BEFORE
INCOME TAXES AND
NONCONTROLLING
INTEREST 253 1,460
Income tax expense (50) (231)
---------------------------- ---------------------------
NET INCOME 203 1,229
Net income
attributable to
noncontrolling
interest (7) (13)
---------------------------- ---------------------------
NET INCOME
ATTRIBUTABLE TO
PARENT COMPANY
STOCKHOLDERS 196 1,216
============================ ===========================
EARNINGS PER SHARE
(BASIC)
ATTRIBUTABLE TO
PARENT COMPANY
STOCKHOLDERS 0.22 1.35
EARNINGS PER SHARE
(DILUTED)
ATTRIBUTABLE TO
PARENT COMPANY
STOCKHOLDERS 0.21 1.29
NUMBER OF WEIGHTED
AVERAGE SHARES
USED IN
CALCULATING
DILUTED EPS 927.8 940.2
---------------------------
STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
September December
As at 27, June 28, 31,
In millions of U.S. dollars 2025 2025 2024
(Unaudited) (Unaudited) (Audited)
ASSETS
-----------------------------------------
Current assets:
Cash and cash equivalents 1,999 1,616 2,282
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