STMicroelectronics Outlines 2027-2028 Financial Model and Path Towards 2030 Ambition

Financial Model and Targets - The company has set an intermediate financial model with revenues expected around $18 billion and an operating margin within a 22% to 24% range for 2027-2028 [1] - The company reiterates its $20 billion plus revenue ambition and associated financial model, now expected to be reached by 2030 [1] - The company expects to achieve high triple-digit million-dollar savings by 2027 through its manufacturing reshaping program and cost base resizing initiative, enabling an operating margin between 22% and 24% in 2027-2028 [2] Strategic Focus and Value Proposition - The company remains focused on sustainable and profitable growth, providing differentiating enablers to customers with a strong commitment to sustainability [3] - The company aims to be a key actor in the transformation of all industries towards a smarter, safer, and more sustainable future, working closely with customers and partners [3] Financial Metrics and Assumptions - The company projects a gross margin of ~44-46% for 2027-2028 and ~50% by 2030 [4] - The operating margin is expected to be ~22-24% for 2027-2028 and over 30% by 2030 [4] - The free cash flow margin is projected to be ~20% for 2027-2028 and over 25% by 2030 [5] - Financial assumptions include a currency exchange rate of approximately $1.09 = €1.00 [5] Capital Markets Day Details - The Capital Markets Day event will cover the company's strategy, key market trends, growth opportunities, developments in manufacturing, technology, and products, and value creation [6] - The event will feature presentations from key executives, including the President & CEO, and heads of various product groups and financial overviews [6] - The event will be webcast live from Paris, France, on November 20, 2024, and will be accessible on the company's website [7] Industry and Market Trends - The company is positioned to address challenges and opportunities in smarter mobility, efficient power and energy management, and the deployment of cloud-connected autonomous things [12] - The company is committed to becoming carbon neutral on scope 1 and 2 and partially scope 3 by 2027, aligning with industry trends towards sustainability [12]