[FORM 6-K Filing Information](index=1&type=section&id=FORM%206-K) STMicroelectronics N.V. filed a Form 6-K report in July 2025, announcing its Q2 2025 financial results [Report of Foreign Private Issuer Details](index=1&type=section&id=Report%20of%20Foreign%20Private%20Issuer) This document is a Form 6-K report filed by STMicroelectronics N.V. for July 2025, announcing its 2025 Second Quarter Financial Results - STMicroelectronics N.V. filed a Form 6-K report for July 2025[2](index=2&type=chunk) - The enclosure is a press release dated July 24, 2025, announcing the company's 2025 Second Quarter Financial Results[3](index=3&type=chunk) [2025 Second Quarter Financial Results Overview](index=2&type=section&id=STMicroelectronics%20Reports%202025%20Second%20Quarter%20Financial%20Results) STMicroelectronics reported Q2 2025 net revenues of $2.77 billion, with a net loss of $97 million, impacted by significant impairment and restructuring charges [Executive Summary of Q2 2025 Performance](index=2&type=section&id=Executive%20Summary) STMicroelectronics reported Q2 2025 net revenues of $2.77 billion, a gross margin of 33.5%, and a U.S. GAAP operating loss of $133 million, leading to a net loss of $97 million or -$0.11 diluted EPS. The results include significant impairment and restructuring charges - Q2 net revenues were **$2.77 billion**, gross margin **33.5%**, operating loss **$133 million**, and net loss **$97 million**[5](index=5&type=chunk)[6](index=6&type=chunk) - The operating loss included **$190 million** related to impairment, restructuring charges, and other related phase-out costs[6](index=6&type=chunk) - H1 net revenues were **$5.28 billion**, with a gross margin of **33.5%** and a net loss of **$41 million**[6](index=6&type=chunk) [U.S. GAAP Financial Highlights](index=2&type=section&id=U.S.%20GAAP%20Financial%20Highlights) Under U.S. GAAP, STMicroelectronics experienced a significant year-over-year decline in Q2 2025, with net revenues decreasing by 14.4% and a shift from operating income to a substantial operating loss, primarily due to impairment and restructuring charges Q2 2025 U.S. GAAP Financial Summary | U.S. GAAP (US$ m, except per share data) | Q2 2025 | Q1 2025 | Q2 2024 | Q/Q | Y/Y | | :-------------------------------------- | :------ | :------ | :------ | :---- | :---- | | Net Revenues | $2,766 | $2,517 | $3,232 | 9.9% | -14.4% | | Gross Profit | $926 | $841 | $1,296 | 10.2% | -28.5% | | Gross Margin | 33.5% | 33.4% | 40.1% | +10 bps | -660 bps | | Operating Income (Loss) | $(133) | $3 | $375 | - | - | | Operating Margin | -4.8% | 0.1% | 11.6% | -490 bps | -1,640 bps | | Net Income (Loss) | $(97) | $56 | $353 | - | - | | Diluted Earnings Per Share | $(0.11) | $0.06 | $0.38 | - | - | - Net revenues decreased **14.4%** year-over-year, while gross margin decreased **660 basis points** to **33.5%**[5](index=5&type=chunk) - Operating income shifted from **$375 million** in Q2 2024 to a loss of **$133 million** in Q2 2025, primarily due to **$190 million** in impairment and restructuring charges[5](index=5&type=chunk)[11](index=11&type=chunk) [Non-U.S. GAAP Financial Highlights](index=2&type=section&id=Non-U.S.%20GAAP%20Financial%20Highlights) Excluding specific charges, non-U.S. GAAP operating income for Q2 2025 was $57 million, with a net income of $57 million or $0.06 diluted EPS, representing a significant year-over-year decline but a sequential improvement Q2 2025 Non-U.S. GAAP Financial Summary | Non-U.S. GAAP (US$ m, except per share data) | Q2 2025 | Q1 2025 | Q2 2024 | Q/Q | Y/Y | | :------------------------------------------- | :------ | :------ | :------ | :----- | :----- | | Operating Income | $57 | $11 | $375 | 429.6% | -84.7% | | Operating Margin | 2.1% | 0.4% | 11.6% | 170 bps | -950 bps | | Net Income | $57 | $63 | $353 | -9.1% | -83.9% | | Diluted Earnings Per Share | $0.06 | $0.07 | $0.38 | -14.3% | -84.2% | - Non-U.S. GAAP operating income was **$57 million**, a **429.6%** sequential increase but an **84.7%** year-over-year decrease[7](index=7&type=chunk) - Non-U.S. GAAP net income decreased **83.9%** year-over-year to **$57 million**[7](index=7&type=chunk) [CEO Commentary and Business Outlook](index=2&type=section&id=CEO%20Commentary%20and%20Business%20Outlook) The CEO noted Q2 net revenues exceeded expectations, driven by Personal Electronics and Industrial, despite Automotive being slightly below. The company anticipates solid sequential growth in Q3, while acknowledging an uncertain macroeconomic environment and focusing on customer support, new product introductions, and manufacturing footprint reshaping - Q2 net revenues exceeded the mid-point of the business outlook, driven by Personal Electronics and Industrial, with Automotive slightly below expectations[6](index=6&type=chunk) - Book-to-bill ratio remained above one for Industrial in Q2, while Automotive was below parity, and bookings continued to increase sequentially[6](index=6&type=chunk) - Priorities include supporting customers, accelerating new product introductions, and executing a company-wide program to reshape manufacturing footprint and resize the global cost base amidst an uncertain macroeconomic environment[6](index=6&type=chunk) [Detailed Financial Review - Q2 2025](index=3&type=section&id=Second%20Quarter%202025%20Summary%20Review) This section provides a detailed review of Q2 2025 financial performance, including net revenues by segment, gross profit, operating income, and net earnings analysis [Net Revenues by Reportable Segment](index=3&type=section&id=Net%20Revenues%20by%20Reportable%20Segment) Total net revenues for Q2 2025 were $2.77 billion, a 14.4% year-over-year decrease but a 9.9% sequential increase. All product groups, APMS and MDRF, experienced year-over-year revenue declines, with P&D showing the largest decrease Net Revenues by Reportable Segment (US$ m) | Net Revenues by Reportable Segment (US$ m) | Q2 2025 | Q1 2025 | Q2 2024 | Q/Q | Y/Y | | :----------------------------------------- | :------ | :------ | :------ | :---- | :----- | | Analog products, MEMS and Sensors (AM&S) | 1,133 | 1,069 | 1,336 | 5.9% | -15.2% | | Power and discrete products (P&D) | 447 | 397 | 576 | 12.9% | -22.2% | | Subtotal: APMS Product Group | 1,580 | 1,466 | 1,912 | 7.8% | -17.4% | | Embedded Processing (EMP) | 847 | 742 | 906 | 14.1% | -6.5% | | RF & Optical Communications (RF&OC) | 336 | 306 | 410 | 10.1% | -17.9% | | Subtotal: MDRF Product Group | 1,183 | 1,048 | 1,316 | 13.0% | -10.1% | | Others | 3 | 3 | 4 | - | - | | Total Net Revenues | $2,766 | $2,517 | $3,232 | 9.9% | -14.4% | - Net sales to OEMs and Distribution decreased **15.3%** and **12.0%** year-over-year, respectively[9](index=9&type=chunk) [Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group](index=3&type=section&id=Analog%2C%20Power%20%26%20Discrete%2C%20MEMS%20and%20Sensors%20(APMS)%20Product%20Group) The APMS Product Group's revenue decreased 17.4% year-over-year to $1.58 billion. The P&D segment saw the largest revenue decline of 22.2% and shifted to an operating loss of $56 million - APMS Product Group revenue decreased **17.4%** year-over-year[9](index=9&type=chunk) - Analog products, MEMS and Sensors (AM&S) segment revenue decreased **15.2%**, with operating profit down **55.9%** to **$85 million**[9](index=9&type=chunk)[13](index=13&type=chunk) - Power and Discrete products (P&D) segment revenue decreased **22.2%**, resulting in an operating loss of **$56 million** compared to a **$61 million** profit in the prior year[9](index=9&type=chunk)[12](index=12&type=chunk) [Microcontrollers, Digital ICs and RF products (MDRF) Product Group](index=3&type=section&id=Microcontrollers%2C%20Digital%20ICs%20and%20RF%20products%20(MDRF)%20Product%20Group) The MDRF Product Group's revenue decreased 10.1% year-over-year to $1.18 billion. The RF & Optical Communications segment experienced a 17.9% revenue decrease and a 37.2% drop in operating profit - MDRF Product Group revenue decreased **10.1%** year-over-year[9](index=9&type=chunk) - Embedded Processing (EMP) segment revenue decreased **6.5%**, mainly due to Custom Processing, with operating profit down **8.7%** to **$114 million**[9](index=9&type=chunk)[21](index=21&type=chunk) - RF & Optical Communications (RF&OC) segment revenue decreased **17.9%**, with operating profit decreasing **37.2%** to **$60 million**[9](index=9&type=chunk)[21](index=21&type=chunk) [Gross Profit and Margin Analysis](index=3&type=section&id=Gross%20Profit%20and%20Margin%20Analysis) Gross profit for Q2 2025 was $926 million, a 28.5% year-over-year decrease. The gross margin of 33.5% decreased by 660 basis points year-over-year, primarily due to product mix, lower manufacturing efficiencies, and higher unused capacity charges - Gross profit totaled **$926 million**, a **28.5%** decrease year-over-year[10](index=10&type=chunk) - Gross margin was **33.5%**, a **660 basis point** decrease year-over-year[10](index=10&type=chunk) - The decrease in gross margin was mainly due to product mix, lower manufacturing efficiencies, and higher unused capacity charges[10](index=10&type=chunk) [Operating Income (Loss) Analysis](index=3&type=section&id=Operating%20Income%20(Loss)%20Analysis) STMicroelectronics reported an operating loss of $133 million in Q2 2025, a significant decline from an operating income of $375 million in the prior-year quarter. This loss includes $190 million in impairment and restructuring charges - Operating income decreased from **$375 million** in Q2 2024 to an operating loss of **$133 million** in Q2 2025[11](index=11&type=chunk) - Operating margin decreased **1,640 basis points** year-over-year to **-4.8%**[11](index=11&type=chunk) - The operating loss included **$190 million** for impairment, restructuring charges, and other related phase-out costs, associated with manufacturing footprint reshaping and cost base resizing[11](index=11&type=chunk) [Net Earnings and Diluted Earnings Per Share](index=4&type=section&id=Net%20Earnings%20and%20EPS) Net earnings and diluted EPS for Q2 2025 turned negative, reporting a loss of $97 million and -$0.11 respectively, a substantial decrease from positive figures in the year-ago quarter - Net Earnings decreased to a negative **$97 million**, compared to a positive **$353 million** in Q2 2024[14](index=14&type=chunk) - Diluted Earnings Per Share decreased to a negative **$0.11**, compared to a positive **$0.38** in Q2 2024[14](index=14&type=chunk) - Non-U.S. GAAP Net income and diluted EPS stood at **$57 million** and **$0.06**, respectively[14](index=14&type=chunk) [Cash Flow and Balance Sheet](index=4&type=section&id=Cash%20Flow%20and%20Balance%20Sheet%20Highlights) This section highlights the company's cash flow performance and balance sheet position, including inventory levels and net financial position [Cash Flow Highlights](index=4&type=section&id=Cash%20Flow%20Highlights) Net cash from operating activities decreased significantly year-over-year to $354 million. Free cash flow was negative at $152 million in Q2 2025, compared to positive $159 million in the prior-year quarter Cash Flow Summary (US$ m) | (US$ m) | Q2 2025 | Q1 2025 | Q2 2024 | Trailing 12 Months Q2 2025 | Trailing 12 Months Q2 2024 | TTM Change | | :---------------------------- | :------ | :------ | :------ | :------------------------- | :------------------------- | :--------- | | Net cash from operating activities | 354 | 574 | 702 | 2,332 | 4,922 | -52.6% | | Free cash flow (non-U.S. GAAP) | (152) | 30 | 159 | 142 | 1,384 | -89.7% | - Net Capex (non-U.S. GAAP) was **$465 million** in Q2 2025, down from **$528 million** in Q2 2024[16](index=16&type=chunk) [Balance Sheet and Financial Position](index=4&type=section&id=Balance%20Sheet%20and%20Financial%20Position) Inventory increased to $3.27 billion, with days sales of inventory at 166 days. The net financial position remained strong at $2.67 billion, though it decreased from the previous quarter - Inventory at quarter-end was **$3.27 billion**, up from **$3.01 billion** in the previous quarter and **$2.81 billion** in the year-ago quarter[17](index=17&type=chunk) - Days sales of inventory increased to **166 days** from **130 days** in the year-ago quarter[17](index=17&type=chunk) - ST's net financial position (non-U.S. GAAP) was **$2.67 billion** as of June 28, 2025, reflecting total liquidity of **$5.63 billion** and total financial debt of **$2.96 billion**[18](index=18&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section covers corporate developments, Q3 2025 business outlook, conference call details, forward-looking statements, and company overview [Corporate Developments](index=4&type=section&id=Corporate%20developments) STMicroelectronics held its 2025 Annual General Meeting of Shareholders on May 28, 2025, where all proposed resolutions were approved - All proposed resolutions were approved by shareholders at the 2025 Annual General Meeting on May 28, 2025[19](index=19&type=chunk) [Business Outlook (Q3 2025 Guidance)](index=4&type=section&id=Business%20Outlook) For Q3 2025, STMicroelectronics expects net revenues of $3.17 billion, representing a 14.6% sequential increase, and a gross margin of approximately 33.5%, including about 340 basis points of unused capacity charges - Q3 2025 net revenues are expected to be **$3.17 billion**, an increase of **14.6%** sequentially[22](index=22&type=chunk) - Gross margin for Q3 2025 is expected to be about **33.5%**, including approximately **340 basis points** of unused capacity charges[22](index=22&type=chunk) - Q3 gross margin will be negatively impacted by about **140 basis points** sequentially, mainly from currency effects and non-recurring costs related to manufacturing reshaping[6](index=6&type=chunk) [Conference Call and Webcast Information](index=5&type=section&id=Conference%20Call%20and%20Webcast%20Information) STMicroelectronics held a conference call and webcast on July 24, 2025, to discuss its Q2 2025 financial results and business outlook, with a replay available until August 8, 2025 - A conference call and live webcast were held on July 24, 2025, at 9:30 a.m. CET to discuss Q2 2025 financial results and business outlook[23](index=23&type=chunk) - The webcast replay is accessible at https://investors.st.com and will be available until August 8, 2025[23](index=23&type=chunk) [Forward-looking Information and Risk Factors](index=5&type=section&id=Forward-looking%20Information) The report includes forward-looking statements based on management's current views, which are subject to various known and unknown risks and uncertainties. These risks, detailed in the Annual Report on Form 20-F, could cause actual results to differ materially from expectations - Statements in the release that are not historical facts are forward-looking and based on management's current views and assumptions[27](index=27&type=chunk) - Known and unknown risks and uncertainties could cause actual results, performance, or events to differ materially from anticipated outcomes[27](index=27&type=chunk)[29](index=29&type=chunk) - Key risk factors include changes in global trade policies, uncertain macro-economic and industry trends, customer demand variations, and the ability to design innovative products[28](index=28&type=chunk) [About STMicroelectronics](index=6&type=section&id=About%20STMicroelectronics) STMicroelectronics is a global semiconductor leader with 50,000 employees, serving over 200,000 customers. The company focuses on smarter mobility, efficient power management, and cloud-connected autonomous things, with a goal to be carbon neutral by the end of 2027 - STMicroelectronics is an integrated device manufacturer with **50,000 employees**, serving over **200,000 customers** and thousands of partners[32](index=32&type=chunk) - The company's technologies enable smarter mobility, more efficient power and energy management, and wide-scale deployment of cloud-connected autonomous things[32](index=32&type=chunk) - ST aims to be carbon neutral in all direct and indirect emissions (scopes 1 and 2) and achieve **100%** renewable electricity sourcing by the end of **2027**[32](index=32&type=chunk) [Consolidated Financial Statements (U.S. GAAP)](index=7&type=section&id=Consolidated%20Financial%20Statements) This section presents the unaudited U.S. GAAP consolidated statements of income, balance sheets, and selected cash flow data for Q2 and H1 2025 [Consolidated Statements of Income (Three months ended June 28, 2025)](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(Q2)) For the three months ended June 28, 2025, STMicroelectronics reported net revenues of $2,766 million, a gross profit of $926 million, and an operating loss of $133 million, leading to a net loss attributable to parent company stockholders of $97 million Consolidated Statements of Income (Q2 2025 vs Q2 2024) | (in millions of U.S. dollars, except per share data ($)) | June 28, 2025 (Unaudited) | June 29, 2024 (Unaudited) | | :----------------------------------------------------- | :------------------------ | :------------------------ | | NET REVENUES | 2,766 | 3,232 | | GROSS PROFIT | 926 | 1,296 | | OPERATING INCOME (LOSS) | (133) | 375 | | NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS | (97) | 353 | | DILUTED EARNINGS PER SHARE | (0.11) | 0.38 | - Impairment, restructuring charges and other related phase-out costs amounted to **$190 million** in Q2 2025, compared to zero in Q2 2024[34](index=34&type=chunk) [Consolidated Statements of Income (Six months ended June 28, 2025)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(H1)) For the six months ended June 28, 2025, net revenues were $5,283 million, gross profit was $1,767 million, and the company reported an operating loss of $130 million, resulting in a net loss attributable to parent company stockholders of $41 million Consolidated Statements of Income (H1 2025 vs H1 2024) | (in millions of U.S. dollars, except per share data ($)) | June 28, 2025 (Unaudited) | June 29, 2024 (Unaudited) | | :----------------------------------------------------- | :------------------------ | :------------------------ | | NET REVENUES | 5,283 | 6,697 | | GROSS PROFIT | 1,767 | 2,739 | | OPERATING INCOME (LOSS) | (130) | 925 | | NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS | (41) | 865 | | DILUTED EARNINGS PER SHARE | (0.05) | 0.92 | - Impairment, restructuring charges and other related phase-out costs for H1 2025 totaled **$198 million**[35](index=35&type=chunk) [Consolidated Balance Sheets](index=9&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 28, 2025, total assets were $25,463 million, with total liabilities of $7,479 million. Total equity stood at $17,984 million, including $17,748 million attributable to parent company stockholders Consolidated Balance Sheets (US$ m) | In millions of U.S. dollars | June 28, 2025 (Unaudited) | March 29, 2025 (Unaudited) | December 31, 2024 (Audited) | | :-------------------------- | :------------------------ | :------------------------- | :-------------------------- | | Total assets | 25,463 | 24,923 | 24,743 | | Total liabilities | 7,479 | 6,964 | 7,064 | | Total equity | 17,984 | 17,959 | 17,679 | | Cash and cash equivalents | 1,616 | 1,781 | 2,282 | | Inventories | 3,273 | 3,014 | 2,794 | - Current assets totaled **$11,521 million**, while current liabilities were **$4,204 million**[36](index=36&type=chunk) [Selected Cash Flow Data](index=10&type=section&id=SELECTED%20CASH%20FLOW%20DATA) In Q2 2025, net cash from operating activities was $354 million, while net cash used in investing activities was $332 million and net cash used in financing activities was $191 million, resulting in a net cash decrease of $165 million Selected Cash Flow Data (US$ m) | Cash Flow Data (in US$ millions) | Q2 2025 | Q1 2025 | Q2 2024 | | :------------------------------- | :------ | :------ | :------ | | Net Cash from operating activities | 354 | 574 | 702 | | Net Cash used in investing activities | (332) | (796) | (628) | | Net Cash used in financing activities | (191) | (282) | (112) | | Net Cash decrease | (165) | (501) | (41) | - Depreciation & amortization was **$464 million** in Q2 2025, and net payment for Capital expenditures was **$481 million**[37](index=37&type=chunk) [Appendix - Supplemental Information](index=11&type=section&id=Appendix) This appendix provides supplemental financial information, including changes to reportable segments, channel data, and non-U.S. GAAP reconciliations [Changes to Reportable Segments](index=11&type=section&id=Changes%20to%20reportable%20segments) Effective January 1, 2025, STMicroelectronics adjusted its segment reporting within its two Product Groups (APMS and MDRF) to optimize resources and implement synergies. This involved transferring VIPower products and reorganizing Microcontroller and Digital ICs into new Embedded Processing and RF & Optical Communications segments - Segment reporting adjustments were made effective January 1, 2025, to implement synergies and optimize resources[39](index=39&type=chunk) - VIPower products were transferred from Power and Discrete products (P&D) to Analog products, MEMS and Sensors (AM&S) segment[42](index=42&type=chunk) - New segments include 'Embedded Processing' (EMP) for microcontrollers and Custom Processing, and 'RF & Optical Communications' (RF&OC) for former D&RF and some RF ASICs[42](index=42&type=chunk) [Supplemental Financial Data by Segment and Channel](index=12&type=section&id=ST%20Supplemental%20Financial%20Information) Supplemental data shows that in Q2 2025, OEM channel accounted for 72% of net revenues, and Distribution for 28%. The 'Others' category operating loss significantly increased to $(336) million, primarily due to $190 million in impairment and restructuring charges and $103 million in unused capacity charges Net Revenues By Market Channel (%) | Net Revenues By Market Channel (%) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :--------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total OEM | 72% | 71% | 73% | 76% | 73% | | Distribution | 28% | 29% | 27% | 24% | 27% | - Operating loss for 'Others' was **$(336) million** in Q2 2025, compared to **$(101) million** in Q2 2024[44](index=44&type=chunk) Key Components of 'Others' Operating Loss (US$ m) | (US$ m) | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | | :---------------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Unused capacity charges | 103 | 123 | 118 | 104 | 84 | | Impairment, restructuring charges and other related phase-out costs | 190 | 8 | - | - | - | [Non-U.S. GAAP Financial Measures Reconciliation and Explanation](index=13&type=section&id=Supplemental%20Non-U.S.%20GAAP%20Financial%20Information) The appendix provides reconciliations of non-U.S. GAAP financial measures to U.S. GAAP, including operating income, net earnings, EPS, net financial position, adjusted net financial position, net capex, and free cash flow. These measures are presented to offer a clearer understanding of ongoing operations by excluding specific non-recurring items - Non-U.S. GAAP measures are unaudited and not prepared in accordance with U.S. GAAP, serving as supplemental information for better period-to-period comparisons and trend analysis[25](index=25&type=chunk)[46](index=46&type=chunk)[47](index=47&type=chunk) [Non-U.S. GAAP Operating Income, Net Earnings and EPS](index=13&type=section&id=Non-U.S.%20GAAP%20Operating%20Income%2C%20Net%20Earnings%20and%20EPS) Non-U.S. GAAP operating income, net earnings, and EPS exclude impairment, restructuring charges, and other related phase-out costs to provide a view of ongoing operational performance. For Q2 2025, non-U.S. GAAP operating income was $57 million and net earnings were $57 million - Non-U.S. GAAP measures exclude impairment, restructuring charges, and other related phase-out costs to enhance understanding of ongoing operations[48](index=48&type=chunk) Q2 2025 U.S. GAAP to Non-U.S. GAAP Reconciliation | Q2 2025 (US$ m, except per share data) | Gross Profit | Operating Income (Loss) | Net Earnings | Corresponding Diluted EPS | | :------------------------------------- | :----------- | :---------------------- | :----------- | :------------------------ | | U.S. GAAP | 926 | (133) | (97) | (0.11) | | Impairment, restructuring charges and other related phase-out costs | - | 190 | 190 | | | Estimated income tax effect | - | - | (36) | | | Non-U.S. GAAP | 926 | 57 | 57 | 0.06 | [Net Financial Position and Adjusted Net Financial Position](index=14&type=section&id=Net%20Financial%20Position%20and%20Adjusted%20Net%20Financial%20Position) Net Financial Position, a non-U.S. GAAP measure, represents total liquidity minus total financial debt. As of June 28, 2025, the Net Financial Position was $2.67 billion, and the Adjusted Net Financial Position (considering capital grant advances) was $2.31 billion - Net Financial Position measures capital resources based on cash, short-term deposits, marketable securities, and total financial debt[51](index=51&type=chunk)[52](index=52&type=chunk) Net Financial Position (non-U.S. GAAP) (US$ m) | (US$ m) | Jun 28, 2025 | Mar 29, 2025 | Dec 31, 2024 | | :---------------------------------------- | :----------- | :----------- | :----------- | | Total liquidity | 5,629 | 5,959 | 6,184 | | Total financial debt | (2,957) | (2,877) | (2,953) | | Net Financial Position (non-U.S. GAAP) | 2,672 | 3,082 | 3,231 | | Advances received on capital grants | (361) | (377) | (385) | | Adjusted Net Financial Position (non-U.S. GAAP) | 2,311 | 2,705 | 2,846 | [Net Capex and Free Cash Flow](index=15&type=section&id=Net%20Capex%20and%20Free%20Cash%20Flow) Net Capex, a non-U.S. GAAP measure, adjusts capital expenditures for proceeds from asset sales and capital grants. Free Cash Flow, also non-U.S. GAAP, measures cash generation from operating and investing activities. In Q2 2025, Net Capex was $(465) million, and Free Cash Flow was $(152) million - Net Capex considers the effect of advances from capital grants received on prior periods allocated to property, plant and equipment[55](index=55&type=chunk)[57](index=57&type=chunk) Net Capex (non-U.S. GAAP) (US$ m) | (US$ m) | Q2 2025 | Q1 2025 | Q4 2024 | | :-------------------------------------------------------------------- | :------ | :------ | :------ | | Payment for purchase of tangible assets, as reported | (574) | (587) | (584) | | Proceeds from sale of tangible assets, as reported | 4 | 2 | - | | Proceeds from capital grants and other contributions, as reported | 89 | 47 | 83 | | Advances from capital grants allocated to property, plant and equipment | 16 | 8 | 31 | | Net Capex (non-U.S. GAAP) | (465) | (530) | (470) | Free Cash Flow (non-U.S. GAAP) (US$ m) | (US$ m) | Q2 2025 | Q1 2025 | Q4 2024 | | :------------------------------------------------------ | :------ | :------ | :------ | | Net cash from operating activities | 354 | 574 | 681 | | Net Capex | (465) | (530) | (470) | | Payment for purchase of intangible assets, net of proceeds from sale | (41) | (14) | (32) | | Payment for purchase of financial assets, net of proceeds from sale | - | - | (51) | | Free Cash Flow (non-U.S. GAAP) | (152) | 30 | 128 | [Signatures](index=16&type=section&id=SIGNATURES) This section contains the official signatures for the Form 6-K report, confirming its authorization and filing [Report Signatures](index=16&type=section&id=Report%20Signatures) The report was signed on July 24, 2025, by Lorenzo Grandi, President and Chief Financial Officer of STMicroelectronics N.V., as duly authorized - The report was signed by Lorenzo Grandi, President and Chief Financial Officer of STMicroelectronics N.V., on July 24, 2025[64](index=64&type=chunk)

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

智通财经7月24日电，"绩劣股"集体重挫，意法半导体大跌近18%，奇波雷墨西哥烧烤、陶氏化学跌超 12%，IBM跌超10%。 ...

Investment Rating - The report does not explicitly provide an investment rating for STMicroelectronics, but it highlights weak performance and lower-than-expected guidance for future quarters, indicating a cautious outlook for the stock. Core Insights - STMicroelectronics reported weak 2Q25 results, with revenue of $2.77 billion, meeting market expectations, but EPS of -$0.11 significantly missed the consensus estimate of $0.09 [1][7] - For 3Q25, the company guides revenue between $3.07 billion and $3.27 billion, with a midpoint of $3.17 billion, representing a 14.6% QoQ growth but a 2.5% YoY decline [4][10] Summary by Sections Revenue Performance - In 2Q25, STMicroelectronics achieved a 9.9% QoQ revenue increase but a 14.4% YoY decline. All end markets saw sequential growth, with automotive revenue down 24% YoY but up 14% QoQ, driven by Asia Pacific and the Americas [2][8] - The industrial market saw an 8% YoY decline but a 15% QoQ increase, confirming that 1Q25 was the cyclical trough. Personal electronics and communication equipment also experienced slight declines [2][8] Profitability - The gross profit for 2Q25 was $926 million, a 28.5% YoY decline, with a gross margin of 33.5%, down 660 bps YoY due to unfavorable product mix and lower manufacturing efficiency [3][9] - Operating loss was $133 million, including $190 million in impairment and restructuring charges. Non-GAAP operating margin for the quarter was +2.1% [3][9] Future Guidance - For 3Q25, the company expects all end markets except automotive to return to YoY growth, with gross margin guidance of 33.5% ± 200 bps, impacted by idle capacity costs and non-recurring costs related to manufacturing reorganization [4][10] - The FY2025 capital expenditure plan is maintained at $2.0 billion to $2.3 billion, primarily for manufacturing transformation efforts [4][10]

Group 1: Tesla Performance - Tesla's stock price fell over 6% in pre-market trading on July 24 due to disappointing earnings results [2][3] - The latest financial report indicated a 16% decline in automotive revenue, marking the second consecutive quarter of sales decline, and falling short of analyst expectations [5][6] - In Q2, Tesla's automotive revenue was $16.7 billion, down from $19.9 billion year-over-year, with revenue from regulatory credits dropping to $439 million from $890 million [6] Group 2: Tesla's Market Challenges - Tesla's Q2 vehicle deliveries decreased by 14% year-over-year to 384,000 units, attributed to backlash in the U.S. and Europe against CEO Elon Musk's political affiliations and actions [7] - Year-to-date, Tesla's stock has declined approximately 18%, underperforming compared to the Nasdaq index, which has risen about 9% [7] - The company's stock began to decline after CFO mentioned the impact of a recent "big and beautiful bill" affecting Tesla's business, specifically the expiration of the $7,500 federal EV tax credit by the end of September [7] Group 3: Future Outlook for Tesla - Elon Musk emphasized future developments in Robotaxi and Optimus robots, aiming for half of the U.S. population to access autonomous ride-hailing services by the end of the year, pending regulatory approval [8] Group 4: STMicroelectronics Performance - STMicroelectronics' stock plummeted 10% on July 24, marking its largest drop in a year due to unexpected restructuring losses and lower-than-expected guidance for the upcoming quarter [9][10] - Adjusted earnings per share were $0.40, below the expected $0.43, and revenue was $2.25 billion, slightly below the forecast of $2.274 billion [11] - The company reported an adjusted operating loss of $133 million in Q2, contrasting with analyst expectations of a $54 million profit, and projected Q3 gross margin to remain at 33.5%, below the market expectation of 35.4% [12] Group 5: Industry Challenges for STMicroelectronics - The automotive sector, which accounts for a significant portion of STMicroelectronics' revenue, is facing challenges due to global trade tensions and tariffs disrupting the market [12][13] - The company experienced a 14% year-over-year revenue decline to $2.77 billion, slightly above analyst expectations, and anticipates Q3 revenue to rise to approximately $3.17 billion, aligning with market forecasts [12] - Recent performance issues have drawn criticism from the Italian government, which, along with France, holds over 25% of the company's shares [13]

Financial Data and Key Metrics Changes - The company reported revenues of $2.77 billion, which was $56 million above the midpoint of the business outlook range, with automotive revenues slightly below expectations but offset by higher revenues in personal electronics and industrial [6][5] - Gross margin was 33.5%, in line with the midpoint of the business outlook range, but decreased by 660 basis points year over year due to unfavorable product mix and lower manufacturing efficiency [18][20] - Net income for Q2 was a loss of $97 million compared to a profit of $353 million in the same quarter last year, with diluted earnings per share at negative $0.11 compared to positive $0.38 [20][21] Business Line Data and Key Metrics Changes - Automotive revenues grew approximately 14% sequentially, driven by Asia Pacific excluding China and the Americas, but overall automotive revenues declined by about 24% year over year [16][17] - Industrial revenues exceeded expectations with strong sequential growth and year-over-year improvement, confirming that Q1 was the bottom [10][11] - Personal electronics and communication equipment revenues were above expectations, driven by increased content in personal electronics and the expanding low earth orbiting satellite market [13][14] Market Data and Key Metrics Changes - Year-over-year sales to OEMs decreased by 15.3%, while distribution sales also saw a decline [17] - The automotive market is projected to grow, with a total of 90 million vehicles expected, of which 30 million are battery electric and hybrid electric vehicles [42][54] - The company noted that inventory levels in distribution are returning to normal, with improvements seen in Asia Pacific and China [11][115] Company Strategy and Development Direction - The company is focused on car electrification and digitalization, with significant wins in silicon carbide and automotive microcontrollers [8][9] - The strategy includes reshaping the manufacturing footprint and resizing the global cost base, with expected annual cost savings in the high triple million dollar range by the end of 2027 [25][26] - The company aims to maintain its net CapEx plan between $2 billion and $2.3 billion for 2025 to support manufacturing reshaping [25] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the automotive market due to trade and tariff situations but expects sequential growth in Q3 compared to Q2 [7][25] - The company anticipates Q3 revenues to be around $3.17 billion, representing a 14.6% sequential increase but a 2.5% year-over-year decrease [23][25] - Management expressed confidence in the strength of the product portfolio and customer base, despite specific customer dynamics affecting automotive revenues [43][54] Other Important Information - The company received recognition for sustainability, ranking 25th in the Time World's Most Sustainable Companies list and achieving an A-list rating for climate change tracking [14][15] - The company maintained a solid financial position with a net financial position of $2.67 billion as of June 28, 2025 [22] Q&A Session Summary Question: Can you clarify the impact of the manufacturing reshaping program on Q3 gross margin guidance? - Management indicated that the gross margin for Q3 is negatively impacted by approximately 140 basis points due to currency effects and nonrecurring costs related to the manufacturing reshaping program [30][31] Question: Have there been any changes in customer order patterns due to geopolitical uncertainties? - Management noted that all verticals are expected to grow sequentially in Q3, except for automotive due to specific customer dynamics, but overall customer demand remains positive [40][41] Question: What is the outlook for Q4 revenues and potential impacts from new U.S. rules on EVs? - Management expects Q4 revenues to grow sequentially and potentially year-over-year, with no significant impact from new U.S. rules on EVs anticipated at this time [62][65] Question: Can you provide insights on the pricing environment for general-purpose microcontrollers? - Management confirmed that pricing for general-purpose microcontrollers remains stable, with low single-digit pricing observed [104] Question: What is the current status of inventory levels in the distribution channel? - Management reported that inventory levels in distribution have improved, with excess inventory declining by about one month on average [114][115]

Financial Data and Key Metrics Changes - The company reported revenues of $2.77 billion, which was $56 million above the midpoint of the business outlook range, with a gross margin of 33.5% in line with expectations [5][18] - Year-over-year gross profit decreased by 28.5%, and net income was a negative $97 million compared to a positive $353 million in the previous year [20][21] - Days sales of inventory at quarter end was 166 days, slightly above expectations, compared to 130 days in the year-ago quarter [21] Business Line Data and Key Metrics Changes - Automotive revenues grew about 14% sequentially, driven by Asia Pacific and The Americas, but overall automotive revenues declined by about 24% year-over-year [6][15] - Industrial revenues were above expectations with strong sequential growth, confirming that Q1 was the bottom, and general-purpose microcontrollers returned to year-on-year growth [9][12] - Personal Electronics and Communication Equipment revenues were above expectations, driven by increased content and the expanding low earth orbiting satellite market [12][13] Market Data and Key Metrics Changes - The automotive market is experiencing uncertainty due to trade and tariff situations, but the company expects sequential growth in Q3 [6][23] - The industrial market showed strong demand, with point-of-sale (POS) growth indicating real demand rather than inventory replenishment [78] - Sales to OEMs decreased by 15.3% year-over-year, while distribution sales showed a positive trend [15][16] Company Strategy and Development Direction - The company is focused on car electrification and digitalization, with significant wins in automotive microcontrollers and electric vehicle power systems [6][7] - The strategy includes reshaping the manufacturing footprint and resizing the global cost base, with expected annual cost savings in the high triple million dollar range by 2027 [24][25] - The company aims to maintain a net CapEx plan between $2 billion and $2.3 billion for 2025 to support manufacturing reshaping [24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging automotive market but expressed confidence in sequential growth in Q3 and Q4 [6][23] - The company expects Q3 revenues to be around $3.17 billion, reflecting a 14.6% sequential increase and a 2.5% year-over-year decrease [22][23] - Management noted that the automotive market is less stable than in previous years due to competition dynamics and customer-specific changes [42][54] Other Important Information - The company received recognition for sustainability, ranking 25th in the Time World's Most Sustainable Companies list and achieving an A-list rating for climate change [13][14] - The company is working closely with NVIDIA on a new high power density DC-DC architecture for AI data centers [11] Q&A Session Summary Question: Can you clarify the one-off effect from the manufacturing reshaping program in Q3 gross margin guidance? - Management indicated that about 20% of the 140 basis point negative impact on gross margin in Q3 is related to the reshaping program, with expectations for improvement in Q4 [30][31] Question: Have you seen any changes in customer order patterns due to geopolitical uncertainty? - Management noted that while there is a specific customer issue in automotive, overall demand is positive, and they expect sequential growth in Q3 [40][42] Question: What caused the year-over-year revenue decline? - Management explained that the decline was primarily due to customer-specific changes and intangible factors, with a strong expectation for sequential growth in Q3 and Q4 [52][54] Question: Will you be able to grow year-over-year in Q4? - Management expressed optimism about sequential growth in Q4 and the potential for year-over-year growth, depending on customer behavior [61] Question: What is the impact of new U.S. rules on EVs on your business? - Management stated that there is no significant impact from the new U.S. rules on EVs, and they are adapting their strategy accordingly [63] Question: Can you quantify the level of inventories in the distribution channel today? - Management reported that inventory in distribution has declined by about one month on average, moving in the right direction [115] Question: How do you see the pricing environment for silicon carbide in China? - Management acknowledged strong price pressure in China but is confident in their competitive position due to new product introductions and manufacturing capabilities [118][119]

Q2 2025 Financial Performance - Net revenues for Q2 2025 were $2.77 billion, a 14.4% decrease year-over-year [11, 24] - Gross margin for Q2 2025 was 33.5% [11, 29] - Non-U S GAAP operating margin decreased to 2 1% from 11 6% year-over-year [11] - Non-U S GAAP net income decreased to $57 million from $353 million year-over-year [11] H1 2025 Financial Performance - Net revenues decreased 21 1% year-over-year [11] - Non-U S GAAP net income was $120 million [11] Q3 2025 Outlook - The company expects net revenues of $3 17 billion, a 2 5% decrease year-over-year and a 14 6% increase quarter-over-quarter [11, 72] - Gross margin is expected to be about 33 5%, including approximately 340 bps of unused capacity charges [11, 73] - Net operating expenses are expected to be about $860 million [38] Segment Performance - Q2 2025 revenues for Analog products, MEMS and Sensors (AM&S) were $1 133 billion with an operating margin of 7 5% [41] - Q2 2025 revenues for Embedded Processing (EMP) were $847 million with an operating margin of 13 5% [41] - Q2 2025 revenues for Power and discrete products (P&D) were $447 million with an operating margin of -12 5% [42] - Q2 2025 revenues for RF & Optical Communications (RF&OC) were $336 million with an operating margin of 17 9% [42]

Core Viewpoint - STMicroelectronics (STM) reported a significant operating loss of over $100 million in Q2 2025, primarily due to restructuring costs and excess inventory in the MCU segment, although a recovery cycle for MCU and analog chips is anticipated soon [1][3][8]. Financial Performance - Q2 revenue for STM was approximately $2.76 billion, exceeding initial targets and reflecting a 10% quarter-over-quarter increase [3]. - The company recorded an operating loss of about $133 million, contrasting with a profit of $375 million in the same quarter last year [3]. - Cash flow from operating activities was $354 million, down from $702 million year-over-year [2]. Product Segment Performance - Revenue from the APMS product segment was approximately $1.58 billion, a year-over-year decline of 17.4% but a quarter-over-quarter increase of 7.8% [2]. - The MCU product segment generated about $1.18 billion, down 10.1% year-over-year but up 13% quarter-over-quarter [2]. Market Outlook - STM's management expects Q3 revenue to be around $3.17 billion, indicating a potential 15% quarter-over-quarter growth, surpassing analyst expectations [3][8]. - The MCU market is currently facing challenges, particularly in automotive applications, with demand remaining weak and inventory levels high [5][7]. Industry Context - The global MCU market is dominated by STM, NXP, Infineon, Renesas, and Microchip, collectively holding over 80% market share [4]. - The semiconductor industry is projected to recover, with WSTS forecasting an 8.5% growth in the global semiconductor market by 2026, driven by various chip categories including analog and MCU [12].

智通财经7月24日电，意法半导体第二季度财报公布后，股价下跌11%。 ...