STMicroelectronics N.V.

Ladies and gentlemen, welcome to the STMicroelectronics full year 2025 earnings release conference call and live webcast. I am Sandra, the chorus call operator. I would like to remind you that all participants have been listened 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 one on your telephone. For operator assistance, please press star and zero. The conference must not be recorded for publication or broadcast. At this time, it is my pleasure to hand over to Jerome Ramelle, EVP, Corporate Development and Integrated External Communication.

Please go ahead, sir. Thank you, Maura, and thank you, everyone, for joining our fourth quarter and full year 2025 financial result call. Hosting the call today is Jean-Marc Chéry, SC 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. This live webcast and presentation material can be accessed on ST Investor Relations' website. A replay will be available shortly after the conclusion of this call. This call will include forward-looking statements that involve risk factors that could cause ST reserves 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 result this morning, and also in STMOS's recent regulatory finding 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-Marc Chéry, ST President and CEO.

Thank you, Jérôme. Good morning everyone and thank you for joining ST for our Q4 and full year 2025 earnings conference call. I will start with an overview of the fourth quarter and the full year 2025, including business dynamics and I will hand over to Lorenzo for the detailed financial overview. I will then comment on the outlook and conclude before answering your questions. So starting with Q4, we delivered revenues at $3.33 billion above the midpoint of our business outlook range, driven by higher revenues in personal electronics and to a lesser extent in communication equipment and computer peripheral and industrial. while automotive was below expectations. Gross margin of 35.2% was also above the midpoint of our business outlook range, mainly due to better product mix. Excluding impairment, restructuring charges, and other related phase-out costs, diluted earnings per share was $0.11, including certain negative one-tax expenses impact of $0.18 per share. Q4 revenue marked the return to year-over-year growth. During the quarter, we further worked down inventories, both in our balance sheet and in distribution, and we generated a positive return $257 million free cash flow. Looking at the full year 2025, net revenues decreased 11.1% to $11.8 billion, mainly driven by a strong decrease in automotive and, to a lesser extent, in industrials, while personal electronics and communication equipment and computer peripherals both grew. Gross margin was 33.9%, down from 39.3% in full year 2024. Excluding impairment, restructuring charges, and other related phase-on costs, diluted earnings per share was $0.53. We invested $1.79 billion in net capex, while generating free cash flow of $265 million. Let's now discuss our business dynamics during Q4. In automotive, during the quarter, we grew revenues 3% sequentially. Year-over-year revenues declined, but with continued improvement in the trend. Automotive design momentum progressed with design wins across both electric and traditional vehicle domains for applications such as onboard chargers, DC-DC converters, powertrain, and vehicle control electronics. These included design wins for power semiconductors, smart power devices, automotive microcontrollers, analog and sensors. These awards, supported by engagements with various OEM and Tier 1 ecosystems, strengthened our position as a key supplier to the automotive industry. Regarding the acquisition of NXP's MEMS sensor business, the transaction we announced in July is still expected to close in H1 2026. In industrial, revenues were better than expected, showing increases of 5% sequentially and 5% year over year. Importantly, inventories in distribution further decreased and are now normalizing. In industrial, our portfolio of microcontrollers, sensing technologies, and analog and power devices is strongly positioned to support industrial transformation trends and the need of physical AI. During the quarter, we saw design wins across industrial automation and robotics, building automation, power systems, healthcare, and home appliances. In November, we held our STM32 Summit, where we announced several key innovations including the first microcontroller built on the 18-nanometer process, a next-generation wireless microcontroller, and an updated suite of Edge AI software tools. For personal electronics, fourth-quarter revenues were above our expectations, down 2% sequentially, reflecting the seasonality of our engaged customer programs. During the quarter, we strengthened our position in mobile platform and connected consumer devices, both with our engaged customer programs as well as our open market offering for devices such as our sensors, secure solutions, and power management products. Revenues for communication equipment and computer peripherals were up 23% sequentially better than expected. In AI and data center infrastructure, we continue to reinforce our position, supporting the increasing demands for higher power density and energy efficiency. During the quarter, we secured multiple design wins for silicon and silicon carbide based power solutions, supporting next generation AI compute architectures. We also continue to work with customers to bring our silicon photonics technology to the market. This strong momentum in optical technologies for data centers also contributed to a significant rise in demand for our high-performance microcontroller used in pluggable optics. The low-Earth orbit satellite business, based on our BISIMOS and panel-level packaging technologies continued to progress during the quarter, with shipments ramping to our second largest customer. Moving to sustainability, we remain on track for our key 2027 commitments. Carbon neutrality in all direct and indirect emissions from scope one and two, and focusing on product transportation business travel and employee commuting emissions for scope 3, and 100% renewable energy sources. A major milestone this year was the launch of Singapore's largest industrial district cooling system at our home OQ facilities in Q4. We also continue to maintain our strong presence in the major sustainability indices where we were honored to be recognized in the Time World's Most Sustainable Companies list for the second consecutive year. Now, over to Lorenzo, who will present our key financial figures.