STMicroelectronics Studies This autumn and FY 2024 Monetary Outcomes

• This autumn web revenues $3.32 billion; gross margin 37.7%; working margin 11.1%; web revenue $341 million
• FY web revenues $13.27 billion; gross margin 39.3%; working margin 12.6%; web revenue $1.56 billion
• Enterprise outlook at mid-point: Q1 web revenues of $2.51 billion and gross margin of 33.8%
• Begin of the company-wide program to resize world price base*

STMicroelectronics, a worldwide semiconductor chief serving clients throughout the spectrum of electronics purposes, reported U.S. GAAP monetary outcomes for the fourth quarter ended December 31, 2024. This press launch additionally accommodates non-U.S. GAAP measures (see Appendix for added info).

ST reported fourth quarter web revenues of $3.32 billion, gross margin of 37.7%, working margin of 11.1%, and web revenue of $341 million or $0.37 diluted earnings per share.

Jean-Marc Chery, ST President & CEO, commented:

• “FY24 revenues decreased 23.2% to $13.27 billion. Working margin was 12.6% in comparison with 26.7% in FY23 and web revenue decreased 63.0% to $1.56 billion. We invested $2.53 billion in Internet Capex (non-U.S. GAAP) whereas delivering free money movement (non-U.S. GAAP) of $288 million.”
• “This autumn web revenues had been in step with the mid-point of our enterprise outlook vary pushed by larger revenues in Private Electronics offset by decrease revenues in Industrial, whereas Automotive and CECP had been as anticipated. This autumn gross margin of 37.7% was broadly in step with the mid-point of our enterprise outlook vary.”
• “Our book-to-bill ratio remained under 1 in This autumn as we continued to face a delayed restoration and stock correction in Industrial and a slowdown in Automotive, each notably in Europe.”
• “Our first quarter enterprise outlook, on the mid-point, is for web revenues of $2.51 billion, reducing year-over-year by 27.6% and reducing sequentially by 24.4%; gross margin is anticipated to be about 33.8%, impacted by about 500 foundation factors of unused capability fees.”
• “For 2025, we plan to speculate between $2.0 to $2.3 billion in Internet Capex (non-U.S. GAAP).”

Quarterly Monetary Abstract (U.S. GAAP)

(US$ m, besides per share information)	This autumn 2024	Q3 2024	This autumn 2023	Q/Q	Y/Y
Internet Revenues	$3,321	$3,251	$4,282	2.2%	-22.4%
Gross Revenue	$1,253	$1,228	$1,949	2.1%	-35.7%
Gross Margin	37.7%	37.8%	45.5%	-10 bps	-780 bps
Working Revenue	$369	$381	$1,023	-3.3%	-64.0%
Working Margin	11.1%	11.7%	23.9%	-60 bps	-1,280 bps
Internet Revenue	$341	$351	$1,076	-2.6%	-68.3%
Diluted Earnings Per Share	$0.37	$0.37	$1.14	0%	-67.5%

* For every of the involved international locations, the beginning of this system will happen in accordance with relevant rules. 

Annual Monetary Abstract (U.S. GAAP)

(US$ m, besides earnings per share information)	FY2024	FY2023	Y/Y
Internet Revenues	$13,269	$17,286	-23.2%
Gross Revenue	$5,220	$8,287	-37.0%
Gross Margin	39.3%	47.9%	-860 bps
Working Revenue	$1,676	$4,611	-63.7%
Working Margin	12.6%	26.7%	-1,410 bps
Internet Revenue	$1,557	$4,211	-63.0%
Diluted Earnings Per Share	$1.66	$4.46	-62.8%

 

Fourth Quarter 2024 Abstract Evaluation

Reminder: On January 10, 2024, ST introduced a brand new group which implied a change in section reporting beginning Q1 2024. Prior 12 months comparative intervals have been adjusted accordingly. See Appendix for extra element.

Internet Revenues by Reportable Phase (US$ m)	This autumn 2024	Q3 2024	This autumn 2023	Q/Q	Y/Y
Analog merchandise, MEMS and Sensors (AM&S) section	1,198	1,185	1,418	1.1%	-15.5%
Energy and discrete merchandise (P&D) section	752	807	965	-6.8%	-22.1%
Subtotal: Analog, Energy & Discrete, MEMS and Sensors (APMS) Product Group	1,950	1,992	2,383	-2.1%	-18.2%
Microcontrollers (MCU) section	887	829	1,272	7.0%	-30.2%
Digital ICs and RF Merchandise (D&RF) section	481	426	623	13.0%	-22.8%
Subtotal: Microcontrollers, Digital ICs and RF merchandise (MDRF) Product Group	1,368	1,255	1,895	9.0%	-27.8%
Others	3	4	4	–	–
Whole Internet Revenues	$3,321	$3,251	$4,282	2.2%	-22.4%

 

Internet revenues totaled $3.32 billion, representing a year-over-year lower of twenty-two.4%. Yr-over-year web gross sales to OEMs and Distribution decreased 19.8% and 28.7%, respectively. On a sequential foundation, web revenues elevated 2.2%, in step with the mid-point of ST’s steering.

Gross revenue totaled $1.25 billion, representing a year-over-year lower of 35.7%. Gross margin of 37.7%, 30 foundation factors under the mid-point of ST’s steering, decreased 780 foundation factors year-over-year, primarily resulting from product combine and, to a lesser extent, to gross sales value and better unused capability fees.

Working revenue decreased 64.0% to $369 million, in comparison with $1.02 billion within the year-ago quarter. ST’s working margin decreased 1,280 foundation factors on a year-over-year foundation to 11.1% of web revenues, in comparison with 23.9% within the fourth quarter of 2023.

By reportable section¹, in contrast with the year-ago quarter:

In Analog, Energy & Discrete, MEMS and Sensors (APMS) Product Group:

Analog merchandise, MEMS and Sensors (AM&S) section:

• Income decreased 15.5% primarily resulting from decreases in Analog and in Imaging.
• Working revenue decreased by 41.2% to $176 million. Working margin was 14.7% in comparison with 21.1%.

Energy and Discrete merchandise (P&D) section:

• Income decreased 22.1%.
• Working revenue decreased by 63.7% to $89 million. Working margin was 11.9% in comparison with 25.4%.

In Microcontrollers, Digital ICs and RF merchandise (MDRF) Product Group:

Microcontrollers (MCU) section:

• Income decreased 30.2% primarily resulting from a lower in GP MCU.
• Working revenue decreased by 66.4% to $127 million. Working margin was 14.3% in comparison with 29.8%.

Digital ICs and RF merchandise (D&RF) section:

• Income decreased 22.8% primarily resulting from a lower in ADAS (automotive ADAS and infotainment).
• Working revenue decreased by 33.2% to $149 million. Working margin was 31.0% in comparison with 35.7%.

Internet revenue and diluted Earnings Per Share decreased to $341 million and $0.37 respectively in comparison with $1.08 billion and $1.14 respectively within the year-ago quarter. As a reminder, the fourth quarter 2023 web revenue included a one-time non-cash revenue tax advantage of $191 million.

Money Circulate and Stability Sheet Highlights

				Trailing 12 Months
(US$ m)	This autumn 2024	Q3 2024	This autumn 2023	This autumn 2024	This autumn 2023	TTM Change
Internet money from working actions	681	723	1,480	2,965	5,992	-50.5%
Free money movement (non-U.S. GAAP)2	128	136	652	288	1,774	-83.8%

 

Internet money from working actions was $681 million within the fourth quarter in comparison with $1.48 billion within the year-ago quarter. For the full-year 2024, web money from working actions decreased 50.5% to $2.97 billion, which represents 22.3% of whole revenues.

Internet Capex (non-U.S. GAAP), had been $470 million within the fourth quarter and $2.53 billion for the complete 12 months 2024. Within the respective year-ago intervals, web capital expenditures had been $798 million and $4.11 billion.

Free money movement (non-U.S. GAAP) was $128 million and $288 million within the fourth quarter and full 12 months 2024, respectively, in comparison with $652 million and $1.77 billion within the year-ago respective intervals.

Stock on the finish of the fourth quarter was $2.79 billion, in comparison with $2.88 billion within the earlier quarter and $2.70 billion within the year-ago quarter. Days gross sales of stock at quarter-end was 122 days, in comparison with 130 days within the earlier quarter, and 104 days within the year-ago quarter.

Within the fourth quarter, ST paid money dividends to its stockholders totaling $88 million and executed a $92 million share buy-back, as a part of its present share repurchase program.

ST’s web monetary place (non-U.S. GAAP) was $3.23 billion as of December 31, 2024, in comparison with $3.18 billion as of September 28, 2024 and mirrored whole liquidity of $6.18 billion and whole monetary debt of $2.95 billion. Adjusted web monetary place (non-U.S. GAAP), taking into account the impact on whole liquidity of advances from capital grants for which capital expenditures haven’t been incurred but, stood at $2.85 billion as of December 31, 2024.

Company developments

In This autumn, we introduced the launch of a brand new company-wide program to reshape our manufacturing footprint accelerating our wafer fab capability to 300mm Silicon (Agrate and Crolles) and 200mm Silicon Carbide (Catania) and resizing our world price base.

This program ought to lead to strengthening {our capability} to develop our revenues with an improved working effectivity leading to annual price financial savings within the excessive triple-digit million-dollar vary exiting 2027. Particularly by way of working bills (SG&A and R&D), ST expects annual price financial savings totaling $300 to 360 million, exiting 2027, in comparison with the associated fee base of 2024.

Enterprise Outlook

ST’s steering, on the mid-point, for the 2025 first quarter is:

• Internet revenues are anticipated to be $2.51 billion, a lower of 24.4% sequentially, plus or minus 350 foundation factors.
• Gross margin of 33.8%, plus or minus 200 foundation factors.
• This outlook relies on an assumed efficient foreign money trade price of roughly $1.06 = €1.00 for the 2025 first quarter and consists of the influence of current hedging contracts.
• The primary quarter will shut on March 29, 2025.

Convention Name and Webcast Info

A stay webcast (listen-only mode) of the convention name will probably be accessible at ST’s web site, https://traders.st.com, and will probably be obtainable for replay till February 14, 2025.

Use of Supplemental Non-U.S. GAAP Monetary Info

This press launch accommodates supplemental non-U.S. GAAP monetary info.

Readers are cautioned that these measures are unaudited and never ready in accordance with U.S. GAAP and shouldn’t be thought-about as an alternative choice to U.S. GAAP monetary measures. As well as, such non-U.S. GAAP monetary measures will not be akin to equally titled info from different firms. To compensate for these limitations, the supplemental non-U.S. GAAP monetary info shouldn’t be learn in isolation, however solely at the side of ST’s consolidated monetary statements ready in accordance with U.S. GAAP.

See the Appendix of this press launch for a reconciliation of ST’s non-U.S. GAAP monetary measures to their corresponding U.S. GAAP monetary measures.

Ahead-looking Info

A number of the statements contained on this launch that aren’t historic info are statements of future expectations and different forward-looking statements (inside the which means of Part 27A of the Securities Act of 1933 or Part 21E of the Securities Trade Act of 1934, every as amended) which can be primarily based on administration’s present views and assumptions, and are conditioned upon and likewise contain identified and unknown dangers and uncertainties that might trigger precise outcomes, efficiency or occasions to vary materially from these anticipated by such statements resulting from, amongst different elements:

• modifications in world commerce insurance policies, together with the adoption and enlargement of tariffs and commerce obstacles, that might have an effect on the macro-economic setting and adversely influence the demand for our merchandise;
• unsure macro-economic and trade traits (equivalent to inflation and fluctuations in provide chains), which can influence manufacturing capability and end-market demand for our merchandise;
• buyer demand that differs from projections which can require us to undertake transformation measures that will not be profitable in realizing the anticipated advantages in full or in any respect;
• the power to design, manufacture and promote revolutionary merchandise in a quickly altering technological setting;
• modifications in financial, social, public well being, labor, political, or infrastructure situations within the areas the place we, our clients, or our suppliers function, together with because of macroeconomic or regional occasions, geopolitical and army conflicts, social unrest, labor actions, or terrorist actions;
• unanticipated occasions or circumstances, which can influence our skill to execute our plans and/or meet the goals of our R&D and manufacturing applications, which profit from public funding;
• monetary difficulties with any of our main distributors or vital curtailment of purchases by key clients;
• the loading, product combine, and manufacturing efficiency of our manufacturing amenities and/or our required quantity to meet capability reserved with suppliers or third-party manufacturing suppliers;
• availability and prices of kit, uncooked supplies, utilities, third-party manufacturing companies and know-how, or different provides required by our operations (together with rising prices ensuing from inflation);
• the functionalities and efficiency of our IT techniques, that are topic to cybersecurity threats and which help our crucial operational actions together with manufacturing, finance and gross sales, and any breaches of our IT techniques or these of our clients, suppliers, companions and suppliers of third-party licensed know-how;
• theft, loss, or misuse of non-public information about our staff, clients, or different third events, and breaches of information privateness laws;
• the influence of mental property (“IP”) claims by our rivals or different third events, and our skill to acquire required licenses on affordable phrases and situations;
• modifications in our total tax place because of modifications in tax guidelines, new or revised laws, the result of tax audits or modifications in worldwide tax treaties which can influence our outcomes of operations in addition to our skill to precisely estimate tax credit, advantages, deductions and provisions and to comprehend deferred tax belongings;
• variations within the overseas trade markets and, extra notably, the U.S. greenback trade price as in comparison with the Euro and the opposite main currencies we use for our operations;
• the result of ongoing litigation in addition to the influence of any new litigation to which we might change into a defendant;
• product legal responsibility or guarantee claims, claims primarily based on epidemic or supply failure, or different claims referring to our merchandise, or recollects by our clients for merchandise containing our elements;
• pure occasions equivalent to extreme climate, earthquakes, tsunamis, volcano eruptions or different acts of nature, the results of local weather change, well being dangers and epidemics or pandemics in areas the place we, our clients or our suppliers function;
• elevated regulation and initiatives in our trade, together with these regarding local weather change and sustainability issues and our aim to change into carbon impartial by 2027 on scope 1 and a couple of and partially scope 3;
• epidemics or pandemics, which can negatively influence the worldwide financial system in a major method for an prolonged time period, and will additionally materially adversely have an effect on our enterprise and working outcomes;
• trade modifications ensuing from vertical and horizontal consolidation amongst our suppliers, rivals, and clients; and
• the power to efficiently ramp up new applications that may very well be impacted by elements past our management, together with the supply of crucial third-party parts and efficiency of subcontractors in step with our expectations.

Such forward-looking statements are topic to numerous dangers and uncertainties, which can trigger precise outcomes and efficiency of our enterprise to vary materially and adversely from the forward-looking statements. Sure forward-looking statements will be recognized by way of forward-looking terminology, equivalent to “believes”, “expects”, “might”, “are anticipated to”, “ought to”, “can be”, “seeks” or “anticipates” or comparable expressions or the destructive thereof or different variations thereof or comparable terminology, or by discussions of technique, plans or intentions.

A few of these threat elements are set forth and are mentioned in additional element in “Merchandise 3. Key Info — Threat Components” included in our Annual Report on Type 20-F for the 12 months ended December 31, 2023 as filed with the Securities and Trade Fee (“SEC”) on February 22, 2024. Ought to a number of of those dangers or uncertainties materialize, or ought to underlying assumptions show incorrect, precise outcomes might differ materially from these described on this press launch as anticipated, believed or anticipated. We don’t intend, and don’t assume any obligation, to replace any trade info or forward-looking statements set forth on this launch to mirror subsequent occasions or circumstances.

Unfavorable modifications within the above or different elements listed beneath “Merchandise 3. Key Info — Threat Components” now and again in our Securities and Trade Fee (“SEC”) filings, might have a fabric opposed impact on our enterprise and/or monetary situation.