STMicroelectronics N.V.

Ladies and gentlemen, welcome to the STMicroelectronics second quarter 2025 earnings release conference call and live webcast. I am Moira, the chorus call operator. I would like to remind you that all participants will be in listen-only mode and the conference has been recorded. The presentation will be followed by a Q&A session. You can register for questions at any time by pressing star and 1 on your telephone. For operator assistance, please press star and 0. the conference must not be recorded for publication or broadcast. At this time, it's my pleasure to hand over to Jérôme Ramel, EVP Corporate Development and Integrated External Communications. Please go ahead.

Thank you, Maria. Thank you, everyone, for joining our second quarter 2025 Financial Results Call. Hosting the call today is Jean-Marc Chéry, ST President and Chief Executive Officer. Joining Jean-Marc on the call today are Lorenzo Grandi, President and CFO, and Marco Cassis, President, Analog Power and Discrete, MEMS and Sensor Group, and Head of STMicroelectronics Strategy, System Research and Application and Innovation Office. These live webcasts and presentation materials can be accessed on the STInvestorRelations website. A replay will be available shortly after the conclusion of this call. This goal will include forward-looking statements that involve risk factors that could cause ST results to differ materially from management expectations and plans. We encourage you to review the safe harbor statement contained in the press release that was issued with the results this morning and also in ST's most recent regulatory filing for a full description of these risk factors. Also, to ensure all participants have an opportunity to ask questions during the Q&A session, please limit yourself to one question and a brief follow-up. Now I'd like to turn the call over to Jean Marchery, ST President and CEO.

Thank you, Géraud. Good morning, everyone, and thank you for joining ST for our Q2 2025 earnings conference call. I will start with an overview of the second quarter. including business dynamics. I will then hand over to Lorenzo for the detailed financial overview and will then comment on the outlook and conclude before answering your questions. So starting with Q2, we delivered revenues at $2.77 billion, $56 million above the midpoint of our business outlook range, with automotive slightly below our expectations, which was customer-specific, more than offset by higher revenues in personal electronics and industrial. Gross margin of 33.5% was in line with the midpoint of our business outlook range. Let's now discuss our business dynamics during Q2. In automotive, during the quarter, we grew revenues about 14% sequentially, driven in particular by Asia Pacific, excluding China, and the Americas. Our book-to-bill came back below parity, driven by some specific customer dynamics. While the current situation on trade and tariffs is creating uncertainty on the level of car production, we confirm that Q1 was a low point for automotive revenues. We expect sequential growth in the third quarter versus the second quarter. During the quarter, we continue to execute our strategy for car electrification. We had wins with both silicon carbide and silicon devices and modules for multiple new DC-DC converters and on-board chargers designs, as well as with our smart power and smart fuse solutions for electric vehicle power systems. In a continuing challenging automotive market environment, we remain focused on building our pipeline of business and solid execution of our roadmaps in power and discrete for car electrification. In car digitalization, we saw further traction with our portfolio of automotive microcontrollers. We are making good progress in executing our roadmap with many new products set to launch in 2025 and 2026 across our Herm-based Stellar and STL32A product families. We are also continuing to see strong design-in momentum globally with both large-scale OEMs and tier 1 suppliers. One significant win in Q2 was for a one-box braking system by a leading electric vehicle maker in China. Moving to legacy applications. where we have a broad portfolio of application-specific products based on our smart power technologies and leading position in multiple domains, such as airbags, door zones, and raking solutions. A notable win here was a high-volume airbag solution with a world leader in automotive electronics safety systems, the third generation of a long-term partnership. with our automotive grade sensors we continue to see strong designing momentum and opportunities wins in the quarter included name sensors for edas airbag control and infotainment systems as well as an imaging sensor for in-cabin monitoring There are also a growing number of opportunities for sensors to improve the driving experience with applications such as road noise cancellation, occupancy monitoring, and seat position sensors. In industrial, Q2 revenues were above expectations with strong sequential growth and continued year-over-year improvements. confirming that Q1 was the bottom. I would also like to highlight that, specifically for general purpose microcontrollers, we are back to year-on-year growth. In terms of months of inventory and distribution overall, we are now back to a normal situation in China, close to normalization in other ASEAN countries, and improving, but still above normal in other geographies. In Q2, our B2B ratio remained above 1 and bookings continued to increase sequentially, supporting our expectation of further sequential growth in the third quarter compared to the second quarter. During the quarter, we made strong progress with our designing activity for our Power and Unlock portfolio across a range of applications. These included power systems, industrial fans and drives, motor control, white goods, solar inverters, air conditioning, metering, and power for data servers. For data servers, we announced that we are working closely with NVIDIA on a new high power density DC-DC architecture for AI data centers that will operate at 800 volts DC. This will enable higher power density, more compact designs, and a lot less cabling and metal ports. To deliver the needed solution, ST is putting together a combination of its most advanced technologies enabled by silicon material, silicon carbide, and gallium nitride as well as smart power processes like BCD using galvanic isolation. Our portfolio of industrial sensors also gained momentum in applications like container tracking, white goods and livestock monitoring. Moving to embedded processing, our STM32 microcontrollers have continued to gain traction with the broad developer community. Use of our software ecosystem continues to grow strongly and we are now close to 1.5 million unique users on a 12 months running basis versus the 1.3 million unique users for 2024. As mentioned earlier, in Q2 we were back to year-over-year growth for our general purpose microcontrollers with both sequential and year-over-year growth in the ITs. This confirms the strength of our product portfolio and our global ecosystem. In personal electronics and to a lesser extent in communication equipment and computer peripherals, Q2 revenues were above our expectations. We continue to be excited by growth opportunities in our engaged customer programs driven by both increased content in personal electronics and the expanding low Earth orbit satellite market. In terms of corporate development activities, at the end of May, we held our annual general meeting of shareholders. All proposed resolutions were approved by the shareholders. For sustainability, we have received two notable recognitions for our public commitments, reporting and environmental and social performance ST has been recognized in the time world's most sustainable companies list for the second consecutive year we have been ranked 25th most sustainable company globally and first in the electronics hardware and equipment category we have also been recognized for leadership on climate and water security by the Global Environmental Non-Profit CDP with a place on its A list for tracking climate change and a rating of A- for water security. Now over to Lorenzo who will present our key financial figures.