STMicroelectronics: Rising Electronic Content per Vehicle & Growth in Automotive Semiconductors Is A Critical Growth Lever!

STMicroelectronics reported its third-quarter 2025 results, revealing a mixed performance across its various business segments and emphasizing both promising developments and notable challenges. The company posted revenues of $3.19 billion, slightly exceeding expectations. A significant contributor to this revenue was the higher-than-anticipated performance in the Personal Electronics segment, attributed to increased silicon content in customer programs. However, the Automotive segment, while showing improvement, continued to decline year-over-year by 17%, impacted by reductions in capacity reservation fees and fluctuations in demand from electric vehicle manufacturers. Gross margins for the quarter stood at 33.2%, a decline of 460 basis points compared to the previous year. This reduction was mainly due to lower manufacturing efficiencies, adverse currency effects, and reduced capacity reservation fees. Despite these challenges, STMicroelectronics achieved a slight reduction in days of sales inventory, reflecting effective inventory management, which contributed to a positive free cash flow of $130 million.