Core Viewpoint - European chip manufacturer STMicroelectronics reported a sales increase in Q4 due to higher demand for chips in personal electronics, communication devices, computer peripherals, and industrial machinery, despite weak recovery in the automotive sector [1] Group 1: Financial Performance - The quarterly sales reached $3.33 billion, marking a 0.2% year-over-year growth after several quarters of decline [1] - For Q1, the company expects revenue of approximately $3.04 billion, up from $2.52 billion in the same period last year, indicating a potential continuation of sales improvement [1] - The gross margin is projected to be around 33.7%, slightly above the 33.4% from the previous year [1] Group 2: Market Demand - Increased chip procurement from customers in personal electronics, communication devices, computer peripherals, and industrial machinery contributed to the sales growth [1] - The automotive sector's semiconductor demand remains weak, with the company's automotive business performance falling short of expectations [1] - Key automotive clients include Tesla, Hyundai, Continental, and Mobileye, highlighting the importance of this sector despite its current challenges [1]

Investment Rating - The report indicates a positive investment outlook for the semiconductor industry, particularly favoring companies like Texas Instruments, Renesas, and STMicroelectronics as preferred picks for exposure to the recovery [2]. Core Insights - The semiconductor inventory is starting to build in the channel, with a month-over-month increase of 4% and a year-over-year average price increase of 2% [2]. - Pricing trends show a general decline in the low to mid single digits through 2023 and 2024, stabilizing in 2025, with signs of increases in 2026 [3]. - The report highlights that MCU and MPU inventories have increased by 7% and 31% month-over-month, respectively, driven by Microchip's significant inventory build [4]. - The pricing environment remains supportive, with average year-over-year pricing flat on a revenue exposure weighted basis [26]. Summary by Sections Inventory Trends - Inventory levels are generally stable, with MCU inventories showing a 323% increase compared to January 2023 [32]. - Nexperia's unit inventory has stabilized, with a month-over-month increase of 4% and a year-over-year price increase of 30-50% [8][10]. Pricing Trends - The Like-for-Like Price Index has been restated to better reflect pricing trends, showing an average price increase of 1% month-over-month and 2% year-over-year [3][25]. - Pricing for Texas Instruments has increased by approximately 13% for two consecutive months, while Infineon's pricing has decreased by around 8% [5]. Company Observations - Microchip's unit inventories have increased significantly, although the reasons for this increase remain unclear [5]. - The report notes that pricing for transistors and diodes has seen limited impact from disruptions, with average pricing remaining stable [20][22].

Core Insights - STMicroelectronics reported a net loss of $30 million in Q4, a significant decline from a net income of $341 million in the same quarter last year, impacted by $141 million in impairment and restructuring costs, and $163 million in one-time tax expenses [1][6] - The company achieved Q4 revenue of $3.33 billion, exceeding the midpoint of its guidance, driven by strong performance in personal electronics and communication equipment, while automotive revenue fell short of expectations [3][4] Financial Performance - Gross margin for Q4 was 35.2%, attributed to a favorable product mix, with non-GAAP diluted EPS at $0.11, despite negative one-time expenses [2][6] - For the full year 2025, ST reported net revenues of $11.8 billion, down 11.1% from 2024, primarily due to declines in automotive and industrial sectors, while personal electronics and communications saw growth [10][11] - Gross margin for 2025 was 33.9%, down from 39.3% in 2024, with operating income falling to $175 million from $1.68 billion in 2024 [12] Segment Performance - Year-over-year, analog products, MEMS and sensors increased by 7.5%, RF and optical communication rose by 22.9%, while power and discrete products declined by 31.6% [7] - By end market, communication equipment and computer peripherals grew by about 17%, industrial by about 5%, while automotive declined by about 15% [8] Strategic Outlook - For Q1 2026, revenue is guided to $3.04 billion, down approximately 8.7% sequentially, with gross margin expected around 33.7%, including charges from unused capacity [5][15] - The company plans approximately $2.2 billion in net capital expenditures for 2026, focusing on capacity additions for growth drivers and a manufacturing reshaping program [17][18] - Management highlighted growth drivers for 2026, including ADAS ASICs in automotive, recovery in silicon carbide power devices, and demand in MEMS and imaging sensors [19][20]

STMicroelectronics (NYSE:STM) Q4 2025 Earnings call January 29, 2026 03:30 AM ET Company ParticipantsAndrew Gardiner - Managing Director and Head of European Technology Equity ResearchDomenico Ghilotti - Co-Head of ResearchFrançois-Xavier Bouvignies - Equity Research Executive DirectorJean-Marc Chéry - President and CEOJoshua Buchalter - Managing Director of Equity ResearchJérôme Ramel - EVP Corporate Development and Integrated External CommunicationLorenzo Grandi - President and CFOStéphane Houri - Head of ...

STMicroelectronics (NYSE:STM) Q4 2025 Earnings call January 29, 2026 03:30 AM ET Company ParticipantsAndrew Gardiner - Managing Director and Head of European Technology Equity ResearchDomenico Ghilotti - Co-Head of ResearchFrançois-Xavier Bouvignies - Equity Research Executive DirectorJean-Marc Chéry - President and CEOJoshua Buchalter - Managing Director of Equity ResearchJérôme Ramel - EVP Corporate Development and Integrated External CommunicationLorenzo Grandi - President and CFOStéphane Houri - Head of ...

STMicroelectronics (NYSE:STM) Q4 2025 Earnings call January 29, 2026 03:30 AM ET Speaker3Ladies and gentlemen, welcome to the STMicroelectronics Full Year 2025 Earnings Release Conference Call and Live Webcast. I am Sandra, the Chorus Call operator. I would like to remind you that all participants are in listen-only mode and the conference is being recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing Star and 1 on your telephone. For operator a ...

January 29, 2026 STMicroelectronics Q4 & FY 2025 Financial Results Forward looking information • 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 ...

Core Viewpoint - The demand for analog chips is showing signs of recovery, as evidenced by STMicroelectronics (STM.US) reporting better-than-expected Q4 revenue and Q1 guidance for 2026 [1] Financial Performance - STMicroelectronics reported Q4 revenue of $3.329 billion, a year-on-year increase of 0.2%, surpassing analyst expectations of $3.29 billion [1] - Gross profit decreased by 6.5% year-on-year to $1.172 billion, with a gross margin of 35.2% [1] - Operating profit fell by 66.0% year-on-year to $125 million; excluding a $141 million impairment charge from business restructuring, the operating profit would be $266 million [1] - Non-GAAP earnings per share were $0.11, down 70.3% year-on-year [1] - For Q1 2026, STMicroelectronics expects revenue of $3.04 billion, exceeding analyst expectations of $2.99 billion, with a projected gross margin of 33.7% [1] Market Context - STMicroelectronics is a joint venture between France and Italy, providing a wide range of chips, including high-performance power chips for Tesla (TSLA.US) and core chips for Apple (AAPL.US) [2] - The company heavily relies on U.S. customers, with about 20% of its revenue coming from Apple and Tesla, but lacks manufacturing facilities in the U.S., potentially leading to additional costs for customers [2] Industry Trends - Competitors like Texas Instruments (TXN.US) and Analog Devices (ADI.US) have also reported strong performance, indicating a potential recovery in the analog chip market [3] - Texas Instruments forecasts Q1 2026 revenue between $4.32 billion and $4.68 billion, with an expected earnings per share of $1.22 to $1.48 [3] - The global semiconductor market is gradually recovering, driven by AI demand, with analog chips experiencing tightening supply and longer lead times [4] - Analog chips play a crucial role in various applications, including communication, automotive electronics, and AI data centers, where they are essential for power management and signal processing [4] Supply Chain Dynamics - There is a notable shortage of certain analog chip models in automotive, industrial, and AI server sectors, primarily due to the reduction in 8-inch wafer production capacity by major manufacturers like Samsung and TSMC [5] - The global 8-inch wafer capacity is expected to decrease by 2.4% by 2026, contributing to the supply constraints in the analog chip market [5] - The World Semiconductor Trade Statistics (WSTS) anticipates continued strong demand for chips, including analog and MCU chips, entering a robust recovery phase in 2026 [5]

Core Viewpoint - The article discusses the challenges of managing excess inventory in the semiconductor industry, highlighting the financial burden of storage and capital costs associated with unsold materials, while promoting a service that facilitates quick transactions for surplus stock [1][8]. Group 1: Inventory Management - A significant amount of excess inventory, specifically 100,000 units, is incurring monthly storage and capital costs of at least 5,000, leading to a potential loss of 30,000 if held for six months [1]. - The company offers a platform, "Chip Superman," which has served 22,000 users, to help sell excess inventory quickly, often completing transactions within half a day [8]. Group 2: Inventory Listings - The article lists various semiconductor components available for sale, including brands like Micron and SK Hynix, with quantities ranging from 4,000 to 30,000 units for different models [4][5]. - The inventory includes a diverse range of products, with over 1,000 models and 100 brands, totaling 50 million chips valued at over 100 million [7]. Group 3: Purchase Requests - The company is actively seeking specific components, such as 50,000 units of the brand Nexperia's PMEG4010EH and 400 units of Samsung's KHBBC4B03C-MC1K, indicating a demand for various semiconductor parts [6].

Core Insights - STMicroelectronics reported a net revenue of $3.33 billion for Q4 2025, reflecting a slight year-over-year increase of 0.2% and a sequential increase of 4.5% [3][4][7] - The company experienced a gross margin of 35.2%, which is a decrease of 250 basis points year-over-year but an improvement of 20 basis points compared to the previous quarter [4][10] - Operating income fell significantly to $125 million, down 66% year-over-year, largely due to $141 million in impairment and restructuring charges [3][11][12] - The net loss for the quarter was $30 million, translating to a diluted loss per share of $0.03, compared to a profit of $341 million and earnings per share of $0.37 in Q4 2024 [3][14] Financial Performance - Q4 2025 net revenues were $3.33 billion, with a gross profit of $1.17 billion, resulting in a gross margin of 35.2% [4][10] - The operating income for Q4 2025 was $125 million, with an operating margin of 3.8%, down from 11.1% in Q4 2024 [4][11] - For FY 2025, net revenues totaled $11.80 billion, a decrease of 11.1% from the previous year, with an operating income of $175 million [6][7] Segment Performance - The Analog products, MEMS and Sensors (AM&S) segment reported revenues of $1.45 billion, a 7.5% increase year-over-year [9][12] - The Power and Discrete products (P&D) segment saw a significant revenue decline of 31.6% year-over-year, totaling $412 million [9][12] - The Embedded Processing (EMP) segment generated $1.02 billion in revenue, a slight increase of 1.2% year-over-year [9][12] Cash Flow and Financial Position - Net cash from operating activities for Q4 2025 was $674 million, a decrease from $681 million in Q4 2024 [16][17] - Free cash flow for Q4 2025 was reported at $257 million, compared to $128 million in the same quarter last year [17][18] - The net financial position as of December 31, 2025, was $2.79 billion, reflecting total liquidity of $4.92 billion and total financial debt of $2.13 billion [19][62] Business Outlook - For Q1 2026, STMicroelectronics expects net revenues of approximately $3.04 billion, a sequential decrease of 8.7% [7][22] - The gross margin for Q1 2026 is projected to be around 33.7%, including about 220 basis points of unused capacity charges [7][22] - The company plans to invest between $2.0 to $2.2 billion in net capital expenditures for 2026 [7][21]