Slides
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STMicroelectronics Q4 & FY 2025 Financial Results January 29, 2026
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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, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors: • changes in global trade policies, including the continuation, adoption and expansion of tariffs and trade barriers and sanctions, that are affecting and could further affect the macro-economic environment and are adversely impacting and could further adversely impact the demand for our products; • uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which are impacting and may further impact production capacity and end-market demand for our products; • customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all; • the ability to design, manufacture and sell innovative products in a rapidly changing technological environment; • changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities; • unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding; • financial difficulties with any of our major distributors or significant curtailment of purchases by key customers; • the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers; • availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation); • the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; • theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation; • the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions; • changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets; • variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations; • the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant; • product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts; • natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate; • increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027; • epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results; • industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; • the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and • individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances. Unfavorable changes in the above or other factors listed under “Item 3. Key Information — Risk Factors” from time to time in our SEC filings, could have a material adverse effect on our business and/or financial condition. Forward looking information 2
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Highlights 3*Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. • Net revenues came above the mid-point of our business outlook range, driven by higher revenues in Personal Electronics and, to a lesser extent, in CECP and Industrial, while Automotive was below expectations. • Gross margin of 35.2% was above the mid-point of our business outlook range mainly due to better product mix. • Q4 revenues marked the return to year-over-year growth. • During Q4 we further worked down inventories both in our Balance sheet and in distribution and we generated a positive $257M FCF*. Q4 2025 • For 2026, we plan to invest between $2.0 to $2.2B in Net Capex*.FY 2026 • Outlook at the mid-point is for net revenues of $3.04B, decreasing 8.7% Q/Q, better than average past seasonality, and accelerating the year-over-year growth dynamic that started in Q4. • Gross margin is expected to be about 33.7%; including about 220 bps of unused capacity charges. Q1 2026 • Our strategic priorities remain to accelerate innovation; execute our company-wide program to reshape our manufacturing footprint and resize our global cost base and strengthen free cash flow generation. • FY25 revenues decreased 11.1% to $11.80B, mainly driven by a strong decrease in Automotive and, to a lesser extent, in Industrial while Personal Electronics and CECP both grew. • Gross margin was 33.9% down from 39.3% in FY24. Non-U.S. GAAP* operating margin was 4.7% and non-U.S. GAAP* net income was $486M and Non-U.S. GAAP* diluted EPS was $0.53. • We invested $1.79B in Net Capex* while delivering FCF* of $265M. FY 2025
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Q4 2025 Business dynamics
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On track for our key sustainability commitments 5 Carbon neutral* by 2027 Sourcing 100% renewable electricity by 2027 *on scope 1 & 2 and focusing on product transportation, business travel and employee commuting emissions for scope 3
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Q4 2025 Revenues dynamics Analog, Power & Discrete, MEMS and Sensors (APMS) Microcontrollers, Digital ICs and RF products (MDRF) % by reportable segments Others Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Embedded Processing (EMP) RF & Optical Communications (RF&OC) 44% 12% 30% 14% 0.1% Automotive Industrial Personal electronics Communications equipment & computer peripherals % by end market 38% 20% 26% 16% -15%Y/Y +5%Y/Y +17%Y/Y +17%Y/Y +7.5%Y/Y -31.6%Y/Y +1.2%Y/Y +22.9%Y/Y +3% Q/Q +5% Q/Q -2% Q/Q +23% Q/Q +1.1% Q/Q -3.9% Q/Q +3.9% Q/Q +30.5%Q/Q 6
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% by shipment location % by customer type Q4 2025 Revenues 7 64% 20% 16% Americas EMEA Asia Pacific 48% 25% 27% Top 10 OEMs Other OEMs Distribution % by region of origin 31% 25% 44% Americas EMEA Asia Pacific
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Q4 2025 Financial highlights 8 30% 35% 40% Q424 Q325 Q425 2.0 2.5 3.0 3.5 Q424 Q325 Q425 0% 5% 10% 15% Q424 Q325 Q425 0 100 200 300 400 Q424 Q325 Q425 Revenues = $3.33B Non-U.S. GAAP Operating Margin* = 8.0% Gross Margin = 35.2% Non-U.S. GAAP Net Income* = $100M +0.2% Y/Y *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important.
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Q4 2025 Reportable segments results 9 Revenues = $1,449M Operating Margin = 16.2% Analog products, MEMS and Sensors (AM&S) Revenues = $1,015M Operating Margin = 19.2% Embedded Processing (EMP) Revenues = $412M Operating Margin = -30.2% Power and discrete products (P&D) Revenues = $449M Operating Margin = 23.4% RF & Optical Communications (RF&OC) -40% -20% 0% 20% 40% 0 300 600 900 1,200 1,500 Q424 Q125 Q225 Q325 Q425 Revenue (US$M) Operating Margin (%) -40% -20% 0% 20% 40% 0 300 600 900 1,200 1,500 Q424 Q125 Q225 Q325 Q425 Revenue (US$M) Operating Margin (%) -40% -20% 0% 20% 40% 0 300 600 900 1,200 1,500 Q424 Q125 Q225 Q325 Q425 Revenue (US$M) Operating Margin (%) -40% -20% 0% 20% 40% 0 300 600 900 1,200 1,500 Q424 Q125 Q225 Q325 Q425 Revenue (US$M) Operating Margin (%)
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FY 2025 Revenues dynamics Analog, Power & Discrete, MEMS and Sensors (APMS) Microcontrollers, Digital ICs and RF products (MDRF) % by reportable segments Others Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Embedded Processing (EMP) RF & Optical Communications (RF&OC) 43% 14% 31% 12% 0.1% Automotive Industrial Personal electronics Communications equipment & computer peripherals % by end market 39% 21% 25% 15% -24%Y/Y -7%Y/Y +4%Y/Y +5%Y/Y -6.3%Y/Y -31.5%Y/Y -7.1%Y/Y -4.9%Y/Y 10
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% by shipment location % by customer type FY 2025 Revenues 11 63%21% 16% Americas EMEA Asia Pacific 47% 25% 28% Top 10 OEMs Other OEMs Distribution % by region of origin 31% 26% 43% Americas EMEA Asia Pacific
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FY 2025 Financial highlights 0% 25% 50% FY24 FY25 0.0 5.0 10.0 15.0 FY24 FY25 0% 10% 20% FY24 FY25 0.0 0.5 1.0 1.5 2.0 FY24 FY25 Revenues = $11.80B Non-U.S. GAAP Operating Margin* = 4.7% Gross Margin = 33.9% Non-U.S. GAAP Net Income* = $486M 12 *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important.
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FY 2025 Financial flexibility *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. 13 0.0 1.5 3.0 4.5 6.0 FY21 FY22 FY23 FY24 FY25 Net Cash From Operating Activities = $2.15B 10% 15% 20% 25% 0.0 1.5 3.0 4.5 FY21 FY22 FY23 FY24 FY25 Thousands Capex / sales (%) Net Capex* = $1.79B 0 500 1,000 1,500 2,000 FY21 FY22 FY23 FY24 FY25 Free Cash Flow* = $265M Cash dividends paid to stockholders totaled $321M in FY25. In FY25 we repurchased shares totaling $367M.
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Solid capital structure 14 *Adjusted net financial position, taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.85B as of Dec 31, 2024, $2.27B as of Sep 27, 2025, and $2.46B as of Dec 31, 2025 **Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. ST is in a very solid position from a capital, liquidity and balance sheet perspective. ST credit rating is BBB+ with Negative Outlook from S&P and Baa1 with Stable Outlook from Moody’s. $6.18B $4.78B $4.92B $2.95B $2.17B $2.13B$3.23B $2.61B $2.79B Q424* Q325* Q425* Liquidity Debt Net Financial Position**
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Q1 2026 Outlook 15 Q126 will close on March 28, 2026. This outlook is based on an assumed effective currency exchange rate of approximately $1.16= €1.00 for Q126 and includes the impact of existing hedging contracts. This business outlook does not include any impact for potential further changes to global trade tariffs compared to current situation. Net Revenues Q126 outlook, at the mid-point, is for net revenues of $3.04B, decreasing Q/Q by 8.7%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 33.7%, +/- 200 bps, incl. about 220 bps of unused capacity charges.
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FY 2026 16 Net Capex* We plan to invest about $2.0 to $2.2B in Net Capex* *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important.
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Company-specific growth drivers ADAS engaged customer programs Silicon Carbide power devices MEMS & Imaging sensors General purpose microcontrollers Humanoid robots Engaged customer programs in sensors & analog Cloud optical interconnect and Power and Analog for data centers Low-earth orbit (LEO) satellites
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Questions & answers 18
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