ST(US:STM)2025-10-23 20:19Financial Performance - STMicroelectronics reported Q3 2025 net revenues of $3.19 billion, a 15.2% increase sequentially but a 2.0% decrease year-over-year[5]. - Gross margin for Q3 2025 was 33.2%, down 460 basis points year-over-year, primarily due to lower manufacturing efficiencies and product mix[10]. - Operating income for Q3 2025 was $180 million, a decrease of 52.9% year-over-year, including $37 million related to impairment and restructuring charges[5]. - Net revenues for Q3 2025 were $3,187 million, a decrease of 1.97% from $3,251 million in Q3 2024[35]. - Gross profit for Q3 2025 was $1,059 million, down 13.8% from $1,228 million in Q3 2024[35]. - Operating income for Q3 2025 decreased to $180 million, a decline of 52.8% compared to $381 million in Q3 2024[35]. - Net income attributable to parent company stockholders for Q3 2025 was $237 million, down 32.4% from $351 million in Q3 2024[35]. - Earnings per share (diluted) for Q3 2025 was $0.26, a decrease from $0.37 in Q3 2024[35]. Revenue Guidance and Expectations - The company expects Q4 2025 net revenues to be approximately $3.28 billion, representing a 2.9% sequential increase, with a gross margin target of 35.0%[6]. - Full year 2025 revenue guidance is approximately $11.75 billion, indicating a 22.4% growth in the second half compared to the first half[6]. Cash Flow and Financial Position - Net cash from operating activities in Q3 2025 was $549 million, down 42.7% from $723 million in Q3 2024[15]. - Free cash flow for Q3 2025 was $130 million, a significant decrease of 83.3% compared to $813 million in the year-ago quarter[15]. - The company’s net financial position was $2.61 billion as of September 27, 2025, reflecting total liquidity of $4.78 billion[18]. - The company's total liquidity decreased to $4,776 million in Q3 2025 from $5,629 million in Q2 2025[57]. - The net financial position (non-U.S. GAAP) was $2,610 million in Q3 2025, down from $2,672 million in Q2 2025[57]. - Free Cash Flow (non-U.S. GAAP) for Q3 2025 was $130 million, recovering from a negative $152 million in Q2 2025[66]. Inventory and Assets - The company’s inventory at the end of Q3 2025 was $3.17 billion, down from $3.27 billion in the previous quarter[17]. - Total current assets as of September 27, 2025, were $10,831 million, a decrease from $11,734 million at the end of 2024[37]. - Total assets as of September 27, 2025, were $24,686 million, compared to $24,743 million at the end of 2024[37]. Segment Performance - In Q3 2025, net revenues for the Analog products, MEMS and Sensors (AM&S) segment reached $1,434 million, a 26.6% increase from $1,133 million in Q2 2025[47]. - The Embedded Processing (EMP) segment reported net revenues of $976 million in Q3 2025, up 15.2% from $847 million in Q2 2025[47]. - Total net revenues for the company in Q3 2025 were $3,187 million, representing a 15.2% increase compared to $2,766 million in Q2 2025[47]. - The operating income for the Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group was $154 million in Q3 2025, significantly up from $29 million in Q2 2025[47]. - The RF & Optical Communications (RF&OC) segment generated net revenues of $345 million in Q3 2025, a slight increase from $336 million in Q2 2025[47]. - The Power and Discrete products (P&D) segment reported net revenues of $429 million in Q3 2025, a decrease from $447 million in Q2 2025[47]. - The company experienced unused capacity charges of $102 million in Q3 2025, slightly down from $103 million in Q2 2025[47]. Strategic Initiatives - STMicroelectronics announced the acquisition of NXP's MEMS sensor business for up to $950 million, expected to close in H1 2026[19]. - The company aims to achieve 100% renewable electricity sourcing by the end of 2027[33]. - The company is on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2) by 2027[33].