STMicroelectronics Reports Q4 and FY 2025 Financial Results

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]