STMicroelectronics NV
F:SGM
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STMicroelectronics NV
STMicroelectronics NV, often known simply as ST, has seated itself at the core of an industry that is fundamentally shaping the modern world: semiconductor and electronics manufacturing. Born from a merger in 1987 between Italian and French semiconductor companies, ST has grown into a key player in the global semiconductor market. The company deftly navigates the intrinsic complexity of this sector by designing, developing, manufacturing, and marketing a broad spectrum of semiconductor integrated circuits. These circuits are not mere tiny components; they represent the brains behind an array of electronic devices—from everyday consumer gadgets to critical automotive systems, industrial machinery, and communications infrastructure. This extensive reach across multiple industries underscores ST's strategic advantage and resilience in a market often characterized by its rapid technological advancements and cyclical nature.
Central to ST's business model is its sophisticated fabrication process and the robust global supply chain it has meticulously built. The company operates several world-class manufacturing facilities, equipped with cutting-edge technology and engineering prowess that ensures high efficiency and quality. By maintaining vertical integration, ST controls each stage of production from design to distribution, capturing value at every step. Moreover, their dedicated research and development efforts, which account for a significant portion of expenditures, allow ST to innovate continually and tailor its offerings to target different market segments and trends, such as power-efficient solutions and smart mobility. Through these strategies, STMicroelectronics not only sustains profitability but also strategically positions itself to adapt and thrive amid technological shifts and competitive pressures in the semiconductor landscape.
STMicroelectronics NV, often known simply as ST, has seated itself at the core of an industry that is fundamentally shaping the modern world: semiconductor and electronics manufacturing. Born from a merger in 1987 between Italian and French semiconductor companies, ST has grown into a key player in the global semiconductor market. The company deftly navigates the intrinsic complexity of this sector by designing, developing, manufacturing, and marketing a broad spectrum of semiconductor integrated circuits. These circuits are not mere tiny components; they represent the brains behind an array of electronic devices—from everyday consumer gadgets to critical automotive systems, industrial machinery, and communications infrastructure. This extensive reach across multiple industries underscores ST's strategic advantage and resilience in a market often characterized by its rapid technological advancements and cyclical nature.
Central to ST's business model is its sophisticated fabrication process and the robust global supply chain it has meticulously built. The company operates several world-class manufacturing facilities, equipped with cutting-edge technology and engineering prowess that ensures high efficiency and quality. By maintaining vertical integration, ST controls each stage of production from design to distribution, capturing value at every step. Moreover, their dedicated research and development efforts, which account for a significant portion of expenditures, allow ST to innovate continually and tailor its offerings to target different market segments and trends, such as power-efficient solutions and smart mobility. Through these strategies, STMicroelectronics not only sustains profitability but also strategically positions itself to adapt and thrive amid technological shifts and competitive pressures in the semiconductor landscape.
Revenue: Q4 2025 revenue was $3.33 billion, above the midpoint of guidance, with year-over-year growth returning in the quarter.
Full-Year Decline: 2025 full-year revenue was $11.8 billion, down 11.1% year-on-year, mainly due to a sharp drop in Automotive and some softness in Industrial.
Gross Margin: Q4 gross margin was 35.2%, above guidance midpoint but down 250 basis points year-on-year. Full-year gross margin was 33.9%.
EPS and Profitability: Q4 diluted EPS was negative $0.03, primarily due to one-time tax expenses; full-year EPS was $0.18.
2026 Outlook: Q1 2026 revenue is guided at $3.04 billion (down 8.7% sequentially) and gross margin at 33.7%. Management expects gradual improvement and organic growth in 2026, with gross margin Q1 seen as the low point for the year.
CapEx and Cash Flow: 2025 CapEx was $1.79 billion; 2026 CapEx is planned at $2.2 billion. Free cash flow was $265 million for the year.
End Market Trends: Automotive and Industrial faced inventory corrections in early 2025 but conditions are improving. Personal Electronics and Communication grew, and Industrial inventory is normalizing.
Strategic Initiatives: Progress continues on cost savings and manufacturing reshaping. The NXP MEMS sensor acquisition is expected to close in H1 2026.
