Slide 1: STMicroelectronics Q2 2025 Financial Results
STMicroelectronics Q2 2025 Financial Results July 24, 2025
Slide 2: Forward looking information
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
Slide 3: Highlights
Highlights • Net revenues of $2.77B came above the mid-point of our business outlook range, driven by higher revenues in Personal Electronics and Industrial, while Automotive was slightly below expectations. Q2 • Gross margin of 33.5% was in line with the mid-point of our business outlook range. 202
Slide 4: Q2 2025 Revenues dynamic
Q2 2025 Revenues dynamic % by reportable segments % by end market RF & Optical Communications (RF&OC) Others Communications equipment & -17.9%Y/Y computer peripherals +10.1%Q/Q Analog products, - ~5%Y/Y MEMS and +6% Q/Q 0.1% Sensors (AM&S) 12% -15.2%Y/Y 15% Automotive +5.9% Q/Q -24%Y/Y Personal elec
Slide 5: Q2 2025 Revenues
Q2 2025 Revenues % by shipment location % by region of origin % by customer type Americas Asia Distribution Top 10 18% Americas Pacific OEMs 28% 42% 32% Asia 46% 20% 62% Pacific EMEA 26% 26% Other EMEA OEMs 5
Slide 6: Q2 2025 Financial highlights
Q2 2025 Financial highlights Revenues = $2.77B Non-U.S. GAAP Operating Margin* = 2.1% 3.5 15% 3.0 10% 2.5 5% -14.4% Y/Y 2.0 0% Q224 Q125 Q225 Q224 Q125 Q225 Gross Margin = 33.5% Non-U.S. GAAP Net Income* = $57M 42% 400 300 38% 200 34% 100 30% 0 Q224 Q125 Q225 Q224 Q125 Q225 *Non-U.S. GAAP measure. S
Slide 7: Revenues
Revenues Q225 Revenues = $2.77B 4.50 Q225 revenues down 14.4% Y/Y • AM&S declined 15.2%, P&D 22.2%, EMP 6.5% and RF&OC 17.9%, 3.00 • By end market, Automotive declined 24%, Industrial 8%, Personal Electronics 5% and CECP 5%, • Revenues to OEMs and Distribution decreased 15.3% and 12.0%, respectively
Slide 8: Gross margin
Gross margin Q225 Gross Margin = 33.5% 50% 40% Q225 Gross Margin 30% • Down 660 bps Y/Y, mainly due to product mix, lower manufacturing efficiencies and, to a lesser extent, higher 20% unused capacity charges, • Up 10 bps Q/Q, 10% • 10 bps above the mid-point of ST’s guidance. 0% Q224 Q324 Q424 Q125
Slide 9: Net operating expenses*
Net operating expenses* Q225 Net Operating Expenses = $869M 35% 1100 900 Q225 Combined SG&A and R&D at $934M 700 30% • 33.8% of revenues. 500 300 25% Q225 Net Operating Expenses at $869M 100 • 31.4% of revenues. -100 20% Q224 Q324 Q424 Q125 Q225 SG&A R&D OIE, net Net OPEX % Q325 Net Operating Expens
Slide 10: Q2 2025 Reportable segments results
Q2 2025 Reportable segments results Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Revenues = $1,133M Revenues = $447M Operating Margin = 7.5% Operating Margin = -12.5% 1,500 40% 1,500 40% 1,100 1,100 20% 20% 700 700 0% 0% 300 300 -100 -20% -100 -20% Q224 Q324 Q424 Q125 Q
Slide 11: Q2 2025 Financial flexibility
Q2 2025 Financial flexibility Net Cash From Operating Net Capex* = $465M Free Cash Flow* = -$152M Activities = $354M 1,200 1,200 30% 200 Capex / sales (%) 1,000 1,000 25% 100 800 800 600 600 20% 0 400 400 15% -100 200 200 0 0 10% -200 Q224 Q324 Q424 Q125 Q225 Q224 Q324 Q424 Q125 Q225 Q224 Q324 Q424
Slide 12: Solid capital structure
Solid capital structure $6.29B $5.96B $5.63B ST is in a very solid position from a capital, liquidity and balance sheet perspective. $3.09B $2.88B $2.96B $3.20B $3.08B $2.67B ST credit rating is now BBB+ with Stable Outlook from S&P and Baa1 with Stable Outlook from Moody’s. Q224* Q125* Q225* Liquid
Slide 13: Automotive
Automotive Car electrification Smart power Car digitalization Automotive sensors 13
Slide 14: Industrial
Industrial Power & Energy Embedded processing STM32 Ecosystem ~1.5 million unique users on a 12-month rolling basis 14
Slide 15: Personal electronics
Personal electronics Communications equipment & computer peripherals 15
Slide 16: Sustainability
Sustainability TIME World’s Most Sustainable Companies CDP Leadership Band Ranked 25th most In the CDP leadership sustainable company band for climate globally and 1st in change management Electronics, Hardware (A) and water and Equipment management (A-) category. 16
Slide 17: Q3 2025 Outlook
Q3 2025 Outlook Net Revenues Q325 outlook, at the mid-point, is for net revenues of $3.17B, decreasing Y/Y by 2.5% and increasing Q/Q by 14.6%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 33.5%, +/- 200 bps, incl. about 340 bps of unused capacity charges. Q/Q, our Q3 gro
Slide 18: Takeaways
Takeaways We expect Q3 revenues to show solid sequential growth driven by a cyclical recovery and our engaged customer programs. This will enable a continued year-over-year improvement. Our priorities remain supporting our customers to design-in our products, accelerating new product introductions,
Slide 19: Appendix
Appendix
Slide 20: Historical financial performance
Historical financial performance Effective Exchange Rate €/$ 1.09 1.08 1.08 1.08 1.09 1.08 1.06 1.09 1.08 U.S. GAAP Q124 Q224 H124 Q324 Q424 FY24 Q125 Q225 H125 US$M, except EPS Net Revenues 3,465 3,232 6,697 3,251 3,321 13,269 2,517 2,766 5,283 Gross Margin 41.7% 40.1% 40.9% 37.8% 37.7% 39.3% 33.4%
Slide 21: Appendix
Appendix • Net financial position and Adjusted Net Financial Position (non-U.S. GAAP measure): represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable secu
Slide 22: Historical Revenues and Operating Margin by Product Groups and Reportable Segments
Historical Revenues and Operating Margin by Product Groups and Reportable Segments US$M Q124 Q224 Q324 Q424 FY24 Q125 Q225 Analog products, MEMS and Sensors (AM&S) 1,406 1,336 1,340 1,348 5,429 1,069 1,133 Revenue 17.5% 14.5% 16.1% 16.3% 16.1% 7.7% 7.5% Operating Margin Power and discrete products (
Slide 23: FY 2024 Reportable segment revenues by end market
FY 2024 Reportable segment revenues by end market Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) 6% 1% 8% 44% 29% 35% 64% Automotive 13% Industrial Personal electronics Communications equipment Embedded Processing (EMP) RF & Optical Communications (RF&OC) & computer perip
Slide 24: © STMicroelectronics - All rights reserved.
© STMicroelectronics - All rights reserved. ST logo is a trademark or a registered trademark of STMicroelectronics International NV or its affiliates in the EU and/or other countries. www.st.com/trademarks For additional information about ST trademarks, please refer to www.st.com/trademarks. All oth