Financial Data and Key Metrics Changes - Revenues for Q3 2025 were reported at $3.19 billion, exceeding the midpoint of the business outlook range by $17 million, with a gross margin of 33.2%, slightly below expectations [4][16] - Diluted earnings per share were $0.29, with net income of $237 million compared to $351 million in the previous year [18] - Free cash flow was positive at $130 million, with inventory reduced to $3.17 billion, down by approximately $100 million from the previous quarter [19] Business Line Data and Key Metrics Changes - Automotive revenues grew about 10% sequentially, with expectations for mid-single-digit growth in Q4 [5] - Industrial revenues increased by 8% sequentially and 13% year-over-year, marking a return to year-on-year growth for the first time since Q3 2023 [8] - Personal electronics revenues surged by 40% sequentially, driven by seasonality and increased silicon content [10] Market Data and Key Metrics Changes - Sales to OEMs decreased by 5.1% year-over-year, while revenues from distribution increased by 7.6% [15] - The automotive segment saw a year-over-year decline of 17%, though this was an improvement from a 24% decline in Q2 [15] - The industrial segment's book-to-bill ratio returned to parity, indicating a stabilization in demand [38] Company Strategy and Development Direction - The company is focused on accelerating innovation and reshaping its manufacturing footprint to improve cost efficiency [24] - Strategic priorities include enhancing free cash flow generation and optimizing investments in current market conditions [23] - The acquisition of NXP's MEMS sensor business for up to $950 million is expected to enhance the company's MEMS sensor technology and product portfolio [7] Management's Comments on Operating Environment and Future Outlook - Management anticipates a revenue increase to $3.28 billion in Q4 2025, with a gross margin expected to be around 35% [21] - The company expects to see continued improvement in gross margin driven by enhanced manufacturing efficiency and a reduction in unused capacity charges [29] - There are signs of market recovery, with expectations for a 22.4% revenue growth in the second half of 2025 compared to the first half [22] Other Important Information - The company has reduced its net CapEx plan for 2025 to slightly below $2 billion, reflecting adjustments to market conditions [23] - Total net operating expenses for Q3 were $842 million, stable year-over-year, indicating effective cost management [18] Q&A Session Summary Question: Why is the revenue guidance for Q4 below seasonal expectations? - Management explained that automotive performance is impacted by decreased capacity reservation fees and lower volumes from a key customer, while industrial inventory reductions also affect revenue recognition [27] Question: How sustainable is the gross margin improvement? - The gross margin improvement is driven by better manufacturing efficiency, but there are concerns about potential declines in capacity reservation fees and pricing renegotiations [29][30] Question: What is the outlook for the industrial segment? - The industrial segment shows mixed dynamics, with strong growth in power energy but softness in factory automation and consumer-driven markets [39] Question: How will capacity reservation fees change in 2026? - Capacity reservation fees are expected to remain stable throughout the year, with declines occurring when contracts expire [42] Question: What are the drivers for improving power discrete profitability? - Expected recovery in top-line revenues and transitioning to next-generation silicon carbide are key drivers for improving profitability in the power discrete segment [78][80]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $3,190 million, exceeding the midpoint of the business outlook by $17 million, with a gross margin of 33.2%, slightly below expectations due to product mix issues [7][20] - Diluted earnings per share were $0.29, excluding impairments and restructuring charges, with net income reported at $237 million compared to $351 million in the previous year [22][23] - Free cash flow was positive at $130 million, with inventory reduced by approximately $100 million compared to the previous quarter [22][23] Business Line Data and Key Metrics Changes - Automotive revenues grew about 10% sequentially, with expectations for mid-single-digit growth in Q4 [8] - Industrial revenues increased by 8% sequentially and 13% year-over-year, marking a return to year-on-year growth for the first time since 2023 [11] - Personal Electronics saw a significant revenue increase of 40% sequentially, driven by seasonal customer programs and increased silicon content [13] Market Data and Key Metrics Changes - Year-over-year sales to OEMs decreased by 5.1%, while revenues from distribution increased by 7.6%, indicating a recovery in distribution channels [18] - The automotive market showed a decline of 17% year-over-year, although this was an improvement from a 24% decline in the previous quarter [18] - The industrial segment's book-to-bill ratio returned to parity, with growth dynamics more pronounced in power energy applications [45] Company Strategy and Development Direction - The company is focused on accelerating innovation and reshaping its manufacturing footprint while managing costs effectively [27] - A definitive agreement was made to acquire NXP's MEMS sensor business for up to $950 million, aimed at expanding the MEMS sensor technology portfolio [11] - The company is transitioning to 300mm manufacturing processes, which is expected to enhance production efficiency and profitability in the long term [60][101] Management's Comments on Operating Environment and Future Outlook - Management noted signs of market recovery, with expectations for Q4 revenues to increase by approximately 2.9% sequentially [24] - The gross margin is expected to improve to about 35% in Q4, driven by enhanced manufacturing efficiency and reduced unused capacity charges [25][36] - The company anticipates a challenging first half of 2026 due to lower capacity reservation fees but expects to see growth in silicon carbide and other segments later in the year [88][90] Other Important Information - The company reduced its net CapEx plan for 2025 to slightly below $2 billion, reflecting a strategic adjustment to current market conditions [26] - Inventory at the end of Q3 was $3,170 million, with days sales of inventory improving to 135 days from 166 days in the previous quarter [23] Q&A Session Summary Question: Why is the Q4 revenue guidance below seasonal expectations? - Management explained that automotive performance is impacted by decreased capacity reservation fees and inventory reduction in the industrial segment, leading to lower revenue recognition [32][34] Question: How sustainable is the gross margin improvement? - Management indicated that improved manufacturing efficiency and reduced unused capacity charges are key drivers, but some negative impacts from capacity reservation fee reductions are expected [35][37] Question: What is the outlook for utilization rates and inventory management? - Management confirmed that inventory levels will be controlled, with expectations for improved utilization rates in 2026 as capacity is reduced in certain fabs [42][72] Question: What are the dynamics in the industrial segment? - Management noted growth in power energy applications, while factory automation remains soft, indicating a mixed recovery in the industrial market [46][48] Question: What is the expected trend for capacity reservation fees in 2026? - Management clarified that capacity reservation fees will not decline linearly but will remain stable throughout the year, with some reductions expected as contracts expire [51][52] Question: How will the company manage CapEx in light of transitioning to 300mm processes? - Management stated that CapEx adjustments are being made to align with demand and to support the transition from 200mm to 300mm manufacturing [60][62] Question: What is the outlook for the Power Discrete business? - Management expects a recovery in top-line revenues and profitability in 2026, driven by improved manufacturing efficiency and market dynamics [99][104]

STMicroelectronics Q3 2025 Financial Results October 23, 2025 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 ...

Core Viewpoint - The recovery in demand for semiconductors used in cars and industrial machinery is taking longer than anticipated by many [1] Industry Summary - The semiconductor industry is experiencing a slower-than-expected recovery in demand, particularly in the automotive and industrial machinery sectors [1]

Core Points - STMicroelectronics announced resolutions for an Extraordinary General Meeting of Shareholders (EGM) scheduled for December 18, 2025 [2] - The record date for shareholders to participate in the EGM is set for November 20, 2025 [2] - The company is committed to achieving carbon neutrality in all direct and indirect emissions by the end of 2027 [3] Proposed Resolutions - Appointment of Armando Varricchio to the Supervisory Board for a term expiring at the end of the 2028 AGM, replacing Maurizio Tamagnini [5] - Appointment of Orio Bellezza to the Supervisory Board for a term expiring at the end of the 2028 AGM, replacing Paolo Visca [5]

STMicroelectronics , on Thursday said that it expected sales to rise in the fourth quarter compared with the current quarter, showing evidence of a sustained recovery after a multi-year downturn in its main markets. ...

By Nathan Vifflin (Reuters) -STMicroelectronics on Thursday forecast fourth quarter sales below market expectations, as weak automotive sales spoiled a recovery in its main markets, sending its shares lower. STM, which is one of Europe's largest chipmakers, expects fourth quarter revenue of $3.28 billion, up from the $3.19 billion it reported this quarter. That's below the average analyst forecast of $3.34 billion, according to LSEG data. The Franco-Italian firm, whose top clients include Tesla and Appl ...

Volvo Cars reported on Thursday a small rise in adjusted profit for the third quarter despite tariffs and tough competition as a drastic cost-cutting programme delivered faster than expected. ...

Renault Group beat forecasts with a 6.8% rise in third-quarter revenue on Thursday, as popular new models such as the Dacia Bigster and its financial services business offset a weaker commercial vehic... ...

Core Viewpoint - STMicroelectronics reported its third quarter financial results for 2025, showing a slight increase in net revenues compared to the previous quarter but a year-over-year decline. The company anticipates a modest growth in the fourth quarter, indicating signs of market recovery despite challenges in gross margin and operating income [2][5][6]. Financial Performance - Third quarter net revenues reached $3.19 billion, a 15.2% increase quarter-over-quarter but a 2.0% decrease year-over-year [3][4][9]. - Gross margin was reported at 33.2%, slightly below the midpoint of the company's guidance, and down 460 basis points from the previous year [4][10]. - Operating income was $180 million, significantly lower than $381 million in the same quarter last year, reflecting a 52.9% decrease [4][11]. - Net income for the quarter was $237 million, down 32.3% from $351 million year-over-year [4][13]. Segment Performance - The Analog products, MEMS and Sensors (AM&S) segment saw revenues of $1.43 billion, a 7.0% increase year-over-year, while the Power and Discrete products (P&D) segment experienced a 34.3% decline [9][12]. - The Embedded Processing (EMP) segment reported revenues of $976 million, up 8.7% year-over-year, while the RF & Optical Communications (RF&OC) segment's revenues decreased by 3.4% [9][19]. Business Outlook - For the fourth quarter of 2025, STMicroelectronics projects net revenues of approximately $3.28 billion, representing a sequential increase of 2.9% and a gross margin of around 35.0% [5][26]. - The full-year revenue forecast for 2025 is approximately $11.75 billion, indicating a 22.4% growth in the second half compared to the first half [6][10]. Cash Flow and Financial Position - Net cash from operating activities was $549 million for the third quarter, down from $723 million in the previous year [14][15]. - The company reported a net financial position of $2.61 billion as of September 27, 2025, reflecting strong liquidity [17][59]. Corporate Developments - STMicroelectronics announced the acquisition of NXP's MEMS sensor business for up to $950 million, expected to close in the first half of 2026, which will be financed with existing liquidity [18].