STMicroelectronics Reports 2025 Third Quarter Financial Results

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].