Slide 1: STMicroelectronics Q1 2025 Financial Results
STMicroelectronics Q1 2025 Financial Results April 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 $2.52B decreased 27.3% Y/Y and 24.2% Q/Q. Gross margin was 33.4%. Q1 • Revenues came in line with the mid-point of our business outlook range, driven by higher revenues in Personal Electronics offset by 2025 lower-than-expected revenues in Automotive and Industrial. Gros
Slide 4: Q1 2025 Revenues dynamic
Q1 2025 Revenues dynamic % by reportable segments % by end market RF & Optical Communications (RF&OC) Others Communications equipment & -19.2%Y/Y computer peripherals -16.5%Q/Q Analog products, +1%Y/Y MEMS and -14% Q/Q 0.1% Sensors (AM&S) 12% -23.9%Y/Y 16% Automotive -20.7% Q/Q -39%Y/Y Personal -34%
Slide 5: Q1 2025 Revenues
Q1 2025 Revenues % by shipment location % by region of origin % by customer type Americas Asia Distribution Top 10 17% Americas Pacific OEMs 30% 29% Asia 43% 45% 22% 61% Pacific EMEA 27% 26% Other EMEA OEMs 5
Slide 6: Q1 2025 Financial highlights
Q1 2025 Financial highlights Revenues = $2.52B Operating Margin = 0.1% 3.5 20% 3.2 15% 2.9 10% 2.6 5% 2.3 -27.3% Y/Y 2.0 0% Q124 Q424 Q125 Q124 Q424 Q125 Gross Margin = 33.4% Net Income = $56M 42% 600 38% 400 34% 200 30% 0 Q124 Q424 Q125 Q124 Q424 Q125 6
Slide 7: Revenues
Revenues Q125 Revenues = $2.52B 4.50 Q125 revenues down 27.3% Y/Y • AM&S declined 23.9%, P&D 37.1%, EMP 29.1% and RF&OC 19.2%, 3.00 • By end market, Automotive declined 39%, Industrial 32%, Personal Electronics 11% and CECP increased 1%. • Revenues to OEMs and Distribution decreased 25.7% and 31.2%,
Slide 8: Gross margin
Gross margin Q125 Gross Margin = 33.4% 50% 40% Q125 Gross Margin 30% • Down 830 bps Y/Y, mainly due to product mix and, to a lesser extent, higher unused capacity charges and lower 20% sales price, • Down 430 bps Q/Q, 10% • 40 basis points below the mid-point of ST’s guidance. 0% Q124 Q224 Q324 Q424
Slide 9: Net operating expenses*
Net operating expenses* Q125 Net Operating Expenses = $830M 35% 1100 900 Q125 Combined SG&A and R&D at $879M 700 30% • 35.0% of revenues. 500 300 25% Q125 Net Operating Expenses at $830M 100 • 33.0% of revenues. -100 20% Q124 Q224 Q324 Q424 Q125 SG&A R&D OIE, net Net OPEX % Net Operating Expenses ex
Slide 10: Q1 2025 Reportable segments results
Q1 2025 Reportable segments results Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Revenues = $1,069M Revenues = $397M Operating Margin = 7.7% Operating Margin = -6.9% 1,500 40% 1,500 40% 1,100 30% 1,100 30% 20% 20% 700 700 10% 10% 300 0% 300 0% -100 -10% -100 -10% Q124 Q
Slide 11: Q1 2025 Financial flexibility
Q1 2025 Financial flexibility Net Cash From Operating Net Capex* = $530M Free Cash Flow* = $30M Activities = $574M 1,400 1,400 30% 400 Capex / sales (%) 1,200 1,200 1,000 25% 1,000 200 800 800 20% 600 600 0 400 400 15% 200 200 0 0 10% -200 Q124 Q224 Q324 Q424 Q125 Q124 Q224 Q324 Q424 Q125 Q124 Q224
Slide 12: Solid capital structure
Solid capital structure $6.24B $6.18B $5.96B ST is in a very solid position from a capital, liquidity and balance sheet perspective. $3.11B $2.95B $2.88B $3.13B $3.23B $3.08B ST credit rating is now BBB+ with Stable Outlook from S&P and Baa1 with Stable Outlook from Moody’s. Q124* Q424* Q125* Liquid
Slide 13: Automotive
Automotive Car electrification Car digitalization 13
Slide 14: Industrial
Industrial Power & Energy Embedded processing 14
Slide 15: Personal electronics; Communications equipment & computer peripherals
Personal electronics Communications equipment & computer peripherals Enabling technologies Enabling technologies TMOS THELMA Proprietary pixel Hybrid bonding thermal motion portfolio 3D BSI/CMOS BiCMOS Panel level PIC100 BiCMOS RF front-end packaging Silicon Optical PETRA Diffractive & modules (PLP)
Slide 16: Corporate development
Corporate development During Q1 ST announced the details of its three-year program to reshape the manufacturing footprint and resize the global cost base Confirmed the annual cost savings target in the high triple-digit million-dollar range exiting 2027 Reshaping and modernization aim to achieve two
Slide 17: Sustainability
Sustainability 28th year of reporting Commitments First integrated report as part of ST’s annual report Carbon neutral* by 2027 Sourcing 100% renewable energy by 2027 *on scope 1 & 2 and focusing on product transportation, business travel and employee commuting emissions for scope 3 17
Slide 18: Q2 2025 Outlook
Q2 2025 Outlook Net Revenues Q225 outlook, at the mid-point, is for net revenues of $2.71B, decreasing Y/Y by 16.2% and increasing Q/Q by 7.7%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 33.4%, +/- 200 bps. The second quarter will close on June 28, 2025. This outlook is
Slide 19: FY 2025
FY 2025 Considering the level of uncertainty for the economy globally and for ST end markets specifically, we are not providing an indication for FY25 revenues. We plan to maintain our Net Capex* plan for 2025 between $2.0B and $2.3B mainly to execute the reshaping of our manufacturing footprint. *N
Slide 20: Takeaways
Takeaways While we see Q125 as the bottom, in the current uncertain environment we are focusing on what we can control: • Strict expense control while protecting R&D, continuously innovating to enhance and accelerate the competitiveness of our product and technology portfolio. • On track with our co
Slide 21: Appendix
Appendix
Slide 22: Historical financial performance
Historical financial performance US$M, except EPS Q124 Q224 Q324 Q424 FY24 Q125 Net Revenues 3,465 3,232 3,251 3,321 13,269 2,517 Gross Margin 41.7% 40.1% 37.8% 37.7% 39.3% 33.4% Operating Income 551 375 381 369 1,676 3 Operating Margin 15.9% 11.6% 11.7% 11.1% 12.6% 0.1% Net Income – Reported 513 35
Slide 23: 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 24: 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 Analog products, MEMS and Sensors (AM&S) Revenue 1,406 1336 1,340 1,348 5,429 1,069 Operating Margin 17.5% 14.5% 16.1% 16.3% 16.1% 7.7% Power and discrete products (P&D) Revenue 631
Slide 25: 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 26: © STMicroelectronics - All rights reserved. ST logo is a trademark or a registered
© 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. For additional information about ST trademarks, please refer to www.st.com/trademarks. All other product or service