STMicroelectronics N.V. Form 6-K Summary
Business Context and Reporting Period
This Form 6-K, filed on January 29, 2026, reports the financial results for STMicroelectronics N.V. for the fourth quarter and full year ended December 31, 2025. The company is a global semiconductor leader serving automotive, industrial, personal electronics, and communications markets. The reporting period includes adjustments to segment reporting effective January 1, 2025, reorganizing products into Analog, Power & Discrete, MEMS and Sensors (APMS) and Microcontrollers, Digital ICs and RF products (MDRF) groups.
Key Financial Metrics
| Metric | Q4 2025 (US$ m) | FY 2025 (US$ m) | Q4 2024 (US$ m) |
|---|---|---|---|
| Net Revenues | 3,329 | 11,800 | 3,321 |
| Gross Margin | 35.2% | 33.9% | 37.7% |
| Operating Income (GAAP) | 125 | 175 | 369 |
| Operating Income (Non-GAAP) | 266 | 551 | 369 |
| Net Income (GAAP) | (30) | 166 | 341 |
| Net Income (Non-GAAP) | 100 | 486 | 341 |
| Diluted EPS (GAAP) | (0.03) | 0.18 | 0.37 |
| Diluted EPS (Non-GAAP) | 0.11 | 0.53 | 0.37 |
| Free Cash Flow (Non-GAAP) | 257 | 265 | 128 |
| Net Capex (Non-GAAP) | (395) | (1,790) | (470) |
| Total Liquidity | 4,922 | - | 6,184 |
| Net Financial Position (Non-GAAP) | 2,789 | - | 3,231 |
Material Changes vs. Prior Period
- Revenue: Q4 2025 net revenues increased 0.2% year-over-year (YoY) to $3.33 billion, marking a return to YoY growth. Full-year 2025 revenues decreased 11.1% to $11.80 billion.
- Profitability: GAAP operating income dropped 66.0% YoY in Q4 to $125 million, primarily due to $141 million in impairment, restructuring, and phase-out costs. Non-GAAP operating income decreased 27.8% YoY to $266 million.
- Margins: Gross margin declined 250 basis points YoY to 35.2%, driven by lower manufacturing efficiencies and reduced capacity reservation fees.
- Segment Performance:
- APMS Group: Revenues declined 4.6% YoY. The Power & Discrete segment saw a 31.6% revenue drop and swung to an operating loss of $124 million.
- MDRF Group: Revenues grew 7.0% YoY, driven by a 22.9% increase in the RF & Optical Communications segment and 1.2% growth in Embedded Processing.
- Cash Flow: Operating cash flow for the trailing 12 months decreased 27.5% to $2.15 billion. Free cash flow for the full year was $265 million, down 8.0% from the prior year.
Guidance, Outlook, and Risks
- Q1 2026 Outlook: Management expects net revenues of $3.04 billion (mid-point), representing an 8.7% sequential decrease. Gross margin is projected at 33.7%, including approximately 220 basis points of unused capacity charges.
- 2026 Capex: Planned Net Capex investment is between $2.0 billion and $2.2 billion.
- Strategic Priorities: Focus remains on accelerating innovation, reshaping the manufacturing footprint, resizing the global cost base, and strengthening free cash flow generation.
- Risks and Contingencies:
- Global trade policies, including tariffs and trade barriers, could adversely impact demand.
- Macroeconomic trends, inflation, and supply chain fluctuations.
- Customer demand deviations requiring further transformation measures.
- Geopolitical conflicts, labor actions, and cybersecurity threats.
- Changes in tax rules and the realization of deferred tax assets.
Key Facts for Investor Verification
- Restructuring Impact: Verify the magnitude and timing of the $376 million in impairment and restructuring charges for FY25 and their effect on future operating margins.
- Power Segment Turnaround: Assess the drivers behind the 31.6% revenue decline in the Power & Discrete segment and the path to profitability given the current operating loss.
- Unused Capacity: Monitor the 220 basis points of unused capacity charges included in the Q1 2026 guidance and their potential persistence in subsequent quarters.
- Cash Position: Confirm the stability of the $4.92 billion total liquidity against the planned $2.0–$2.2 billion Capex spend for 2026.
- Segment Reorganization: Review the impact of the January 2025 segment adjustments on year-over-year comparability, particularly regarding the transfer of VIPower products.