Mokulele Airlines and Japan Airlines Announce New Interline Agreement
Travelers will be able to book connecting flights with Japan Airlines through Honolulu International Airport (HNL) to Mokulele Airline's Hawaiian airports, including Molokai (MKK), Kapalua (JHM), Lana'i City (LNY), Hana (HNM), Waimea-Kohala (MUE), and Kailua-Kona (KOA).
Mokulele Airways passengers will have the ability to book connecting international flights to Japan via Japan Airlines.
This interline agreement will increase the Company's exposure to the large international air travel market between Japan and Hawaii and will ensure a more seamless travel experience with single-ticket issuance for the entire trip and easier itinerary changes and communication in the event of schedule changes.
Deanna White, Surf Air Mobility's CEO and COO said, 'We're excited to collaborate with Japan Airlines to connect their international passengers to more destinations across the Hawaiian Islands within our Mokulele Airlines network. With a more integrated booking and travel experience, we're confident both of our customer bases will benefit from the expanded access and more seamless customer service.'
Ross Leggett, Japan Airline's Executive Officer and Deputy Senior Vice President, International Relations & Alliances said, 'I am delighted to announce the interline agreement between Mokulele Airlines and Japan Airlines. With this collaboration, the networks of both airlines between Japan and Hawaii will expand, providing our customers with a wider range of travel options and destinations. For those customers visiting Hawaii, this enhanced connectivity means that they now have easier access to many attractive cities in the islands of Hawaii. JAL is always committed to improving customer satisfaction, and this new partnership with Mokulele Airlines is another step in that direction.'
Surf Air Mobility, through its subsidiary airline brands, Southern Airways and Mokulele Airlines, has interline agreements with five large commercial air carriers, including American Airlines, United Airlines, Alaska Airlines, Hawaiian Airlines, and Japan Airlines, who fly a cumulative ~435 million passengers per year.
This agreement supports Surf Air Mobility's initiative to optimize airline operations as part of the Optimization phase of the Company's Transformation Plan.
About Surf Air Mobility
Surf Air Mobility is a Los Angeles-based regional air mobility platform and one of the largest commuter airlines in the U.S. by scheduled departures. It is also the largest U.S. passenger operator of Cessna Caravans. In addition to its airline operations and On Demand charter services, Surf Air Mobility is developing an AI-powered software platform for the Regional Air Mobility industry. The company is also working to commercialize electrified aircraft and developing proprietary powertrain technology for the Cessna Caravan. Surf Air Mobility plans to offer its software and electrification solutions to the Regional Air Mobility industry to improve safety, efficiency, and profitability.
About Japan Airlines
Japan Airlines (JAL), Japan's first private aviation company, was established in 1951 and is a member of the oneworld® Alliance. The airline operates a fleet of 232 aircraft (as of March 2025) and began renewing its international long-haul aircraft with the Airbus A350-1000 starting 2023 Winter Schedule. Together with other JAL Group and partner airlines, JAL offers an extensive domestic and international network that serves 395 airports across 68 countries/regions. The airline has received numerous accolades for its exceptional service, including being recognized as a certified 5-Star Airline by Skytrax and being awarded the prestigious "World Class" Airline title by APEX, the Airline Passenger Experience Association. The airline is dedicated to ensuring the highest standards of flight safety and overall service quality, striving to be the most preferred airline by customers worldwide.
For details and to learn more, visit JAL's official website at https://www.jal.com/en/
Forward-Looking Statement
This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding projections of Surf Air Mobility's market opportunity and market share, potential benefits and the commercial attractiveness to Surf Air Mobility's customers of Surf Air Mobility's products and services, and Surf Air Mobility's profitability and future financial results. Readers of this release should be aware of the speculative nature of forward-looking statements. These statements are based on the beliefs of Surf Air Mobility's management as well as assumptions made by and information currently available to Surf Air Mobility and reflect Surf Air Mobility's current views concerning future events. As such, they are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among many others: Surf Air Mobility's future ability to pay contractual obligations and liquidity will depend on operating performance, cash flow and ability to secure adequate financing; the inability to accurately forecast demand and manage flight schedules and fleet and crew availability in an effective and efficient manner; the inability to execute business objectives and growth strategies successfully or sustain Surf Air Mobility's growth; the inability of Surf Air Mobility's customers to pay for Surf Air Mobility's products and services; the inability of Surf Air Mobility to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the risks associated with Surf Air Mobility's obligations to comply with applicable laws, government regulations and rules and standards of the New York Stock Exchange; and general economic conditions. These and other risks are discussed in detail in the periodic reports that Surf Air Mobility files with the SEC, and investors are urged to review those periodic reports and Surf Air Mobility's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov, before making an investment decision. Surf Air Mobility assumes no obligation to update its forward-looking statements except as required by law.
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STMicroelectronics Reports 2025 Second Quarter Financial Results
PR No: C3349C STMicroelectronics Reports 2025 Second Quarter Financial Results Q2 net revenues $2.77 billion; gross margin 33.5%; operating loss of $133 million, including $190 million related to impairment, restructuring charges and other related phase-out costs; net loss of $97 million H1 net revenues $5.28 billion; gross margin 33.5%; operating loss of $130 million, including $198 million related to impairment, restructuring charges and other related phase-out costs; net loss of $41 million Business outlook at mid-point: Q3 net revenues of $3.17 billion and gross margin of 33.5% Geneva, July 24, 2025 – STMicroelectronics N.V. ('ST') (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the second quarter ended June 28, 2025. This press release also contains non-U.S. GAAP measures (see Appendix for additional information). ST reported second quarter net revenues of $2.77 billion, gross margin of 33.5%, operating loss of $133 million, and net loss of $97 million or -$0.11 diluted earnings per share (non-U.S. GAAP1 operating income of $57 million, and non-U.S. GAAP1 net income of $57 million or $0.06 diluted earnings per share). Jean-Marc Chery, ST President & CEO, commented: 'Q2 net revenues came above the mid-point of our business outlook range, driven by higher revenues in Personal Electronics and Industrial, while Automotive was slightly below expectations. Gross margin was in line with the mid-point of our business outlook range.' 'On a year-over-year basis, Q2 net revenues decreased 14.4%, non-U.S. GAAP1 operating margin decreased to 2.1% from 11.6% and non-U.S. GAAP1 net income decreased to $57 million from $353 million.' 'First half net revenues decreased 21.1% year-over-year, with a decrease in all reportable segments. Non-U.S. GAAP1 operating margin was 1.3% and non-U.S. GAAP1 net income was $120 million.' 'In the second quarter, our book-to-bill ratio remained above one for Industrial, while Automotive was below parity. Bookings continued to increase sequentially.' 'Our third quarter business outlook, at the mid-point, is for net revenues of $3.17 billion, decreasing year-over-year by 2.5% and increasing sequentially by 14.6%; gross margin is expected to be about 33.5%; including about 340 basis points of unused capacity charges. On a sequential basis, our Q3 gross margin will be negatively impacted by about 140 basis points, mainly from currency effect and, to a lesser extent, the start of non-recurring cost related to our manufacturing reshaping program.' 'While we expect Q3 revenues to show a solid sequential growth enabling a continued year-over-year improvement, we are still operating amid an uncertain macroeconomic environment. Given these external factors, our priorities remain supporting our customers, accelerating new product introductions, and executing our company-wide program to reshape our manufacturing footprint and resize our global cost base.' Quarterly Financial Summary U.S. GAAP(US$ m, except per share data) Q2 2025 Q1 2025 Q2 2024 Q/Q Y/Y Net Revenues $2,766 $2,517 $3,232 9.9% -14.4% Gross Profit $926 $841 $1,296 10.2% -28.5% Gross Margin 33.5% 33.4% 40.1% +10 bps - 660 bps Operating Income (Loss) $(133) $3 $375 - - Operating Margin -4.8% 0.1% 11.6% -490 bps -1,640 bps Net Income (Loss) $(97) $56 $353 - - Diluted Earnings Per Share $(0.11) $0.06 $0.38 - - Non-U.S. GAAP2(US$ m, except per share data) Q2 2025 Q1 2025 Q2 2024 Q/Q Y/Y Operating Income $57 $11 $375 429.6% -84.7% Operating Margin 2.1% 0.4% 11.6% 170 bps -950 bps Net Income $57 $63 $353 -9.1% -83.9% Diluted Earnings Per Share $0.06 $0.07 $0.38 -14.3% -84.2% Second Quarter 2025 Summary ReviewReminder: on January 1, 2025 we made some adjustments to our segment reporting. Prior year comparative periods have been adjusted accordingly. See Appendix for more detail. Net Revenues by Reportable Segment3 (US$ m) Q2 2025 Q1 2025 Q2 2024 Q/Q Y/Y Analog products, MEMS and Sensors (AM&S) segment 1,133 1,069 1,336 5.9% -15.2% Power and discrete products (P&D) segment 447 397 576 12.9% -22.2% Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group 1,580 1,466 1,912 7.8% -17.4% Embedded Processing (EMP) segment 847 742 906 14.1% -6.5% RF & Optical Communications (RF&OC) segment 336 306 410 10.1% -17.9% Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group 1,183 1,048 1,316 13.0% -10.1% Others 3 3 4 - - Total Net Revenues $2,766 $2,517 $3,232 9.9% -14.4% Net revenues totaled $2.77 billion, representing a year-over-year decrease of 14.4%. Year-over-year net sales to OEMs and Distribution decreased 15.3% and 12.0%, respectively. On a sequential basis, net revenues increased 9.9%, 220 basis points better than the mid-point of ST's guidance. Gross profit totaled $926 million, representing a year-over-year decrease of 28.5%. Gross margin of 33.5%, 10 basis points above the mid-point of ST's guidance, decreased 660 basis points year-over-year, mainly due to product mix, lower manufacturing efficiencies and, to a lesser extent, higher unused capacity charges. Operating income decreased from $375 million in the year-ago quarter to an operating loss of $133 million. ST's operating margin decreased 1,640 basis points on a year-over-year basis to -4.8% of net revenues, compared to 11.6% in the second quarter of 2024. Operating loss included $190M impairment, restructuring charges and other related phase-out costs for the quarter, reflecting impairment of assets and restructuring charges predominantly associated with the previously announced company-wide program to reshape our manufacturing footprint and resize our global cost base. Excluding these items, non-U.S. GAAP1 Operating income stood at $57 million in the second quarter. By reportable segment, compared with the year-ago quarter: In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group: Analog products, MEMS and Sensors (AM&S) segment: Revenue decreased 15.2% mainly due to a decrease in Analog. Operating profit decreased by 55.9% to $85 million. Operating margin was 7.5% compared to 14.5%. Power and Discrete products (P&D) segment: Revenue decreased 22.2%. Operating profit decreased from $61 million to an operating loss of $56 million. Operating margin was -12.5% compared to 10.6%. In Microcontrollers, Digital ICs and RF products (MDRF) Product Group: Embedded Processing (EMP) segment: Revenue decreased 6.5% mainly due to Custom Processing. Operating profit decreased by 8.7% to $114 million. Operating margin was 13.5% compared to 13.8%. RF & Optical Communications (RF&OC) segment: Revenue decreased 17.9%. Operating profit decreased by 37.2% to $60 million. Operating margin was 17.9% compared to 23.4%. Net Earnings and diluted Earnings Per Share decreased to a negative $97 million and a negative $0.11 respectively compared to a positive $353 million and $0.38 respectively in the year-ago quarter. Non-U.S. GAAP1 Net income and diluted Earnings Per Share, stood at $57 million and $0.06 respectively in the second quarter of 2025. Cash Flow and Balance Sheet Highlights Trailing 12 Months (US$ m) Q2 2025 Q1 2025 Q2 2024 Q2 2025 Q2 2024 TTM Change Net cash from operating activities 354 574 702 2,332 4,922 -52.6% Free cash flow (non-U.S. GAAP1) (152) 30 159 142 1,384 -89.7% Net cash from operating activities was $354 million in the second quarter compared to $702 million in the year-ago quarter. Net Capex (non-U.S. GAAP1), was $465 million in the second quarter compared to $528 million in the year-ago quarter. Free cash flow (non-U.S. GAAP1) was negative at $152 million in the second quarter, compared to positive $159 million in the year-ago quarter. Inventory at the end of the second quarter was $3.27 billion, compared to $3.01 billion in the previous quarter and $2.81 billion in the year-ago quarter. Days sales of inventory at quarter-end was 166 days, compared to 167 days for the previous quarter and 130 days for the year-ago quarter. In the second quarter, ST paid cash dividends to its stockholders totaling $81 million and executed a $92 million share buy-back, as part of its current share repurchase program. ST's net financial position (non-U.S. GAAP4) remained strong at $2.67 billion as of June 28, 2025, compared to $3.08 billion as of March 29, 2025, and reflected total liquidity of $5.63 billion and total financial debt of $2.96 billion. Adjusted net financial position (non-U.S. GAAP1), taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.31 billion as of June 28, 2025. Corporate developments On May 28, 2025, STMicroelectronics held its 2025 Annual General Meeting of Shareholders in Amsterdam, the Netherlands. All proposed resolutions were approved by the Shareholders. Business Outlook ST's guidance, at the mid-point, for the 2025 third quarter is: Net revenues are expected to be $3.17 billion, an increase of 14.6% sequentially, plus or minus 350 basis points. Gross margin of 33.5%, plus or minus 200 basis points. This outlook is based on an assumed effective currency exchange rate of approximately $1.14 = €1.00 for the 2025 third quarter and includes the impact of existing hedging contracts. The third quarter will close on September 27, 2025. This business outlook does not include any impact of potential further changes to global trade tariffs compared to the current situation. Conference Call and Webcast Information ST will conduct a conference call with analysts, investors and reporters to discuss its second quarter 2025 financial results and current business outlook today at 9:30 a.m. Central European Time (CET) / 3:30 a.m. U.S. Eastern Time (ET). A live webcast (listen-only mode) of the conference call will be accessible at ST's website, and will be available for replay until August 8, 2025. Use of Supplemental Non-U.S. GAAP Financial Information This press release contains supplemental non-U.S. GAAP financial information. Readers are cautioned that these measures are unaudited and not prepared in accordance with U.S. GAAP and should not be considered as a substitute for U.S. GAAP financial measures. In addition, such non-U.S. GAAP financial measures may not be comparable to similarly titled information from other companies. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with ST's consolidated financial statements prepared in accordance with U.S. GAAP. See the Appendix of this press release for a reconciliation of ST's non-U.S. GAAP financial measures to their corresponding U.S. GAAP financial measures. Forward-looking Information Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management's current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors: changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and may directly or indirectly adversely impact the demand for our products; uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products; customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all; the ability to design, manufacture and sell innovative products in a rapidly changing technological environment; changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities; unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding; financial difficulties with any of our major distributors or significant curtailment of purchases by key customers; the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers; availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation); the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation; the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions; changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets; variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations; the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant; product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts; natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate; increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027; epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results; industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as 'believes', 'expects', 'may', 'are expected to', 'should', 'would be', 'seeks' or 'anticipates' or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Some of these risk factors are set forth and are discussed in more detail in 'Item 3. Key Information — Risk Factors' included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission ('SEC') on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances. Unfavorable changes in the above or other factors listed under 'Item 3. Key Information — Risk Factors' from time to time in our Securities and Exchange Commission ('SEC') filings, could have a material adverse effect on our business and/or financial condition. About STMicroelectronics At ST, we are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at For further information, please contact: INVESTOR RELATIONS:Jérôme RamelEVP Corporate Development & Integrated External Communication Tel: +41 22 929 59 20 MEDIA RELATIONS:Alexis BretonCorporate External CommunicationsTel: + 33 6 59 16 79 STMicroelectronics N.V. CONSOLIDATED STATEMENTS OF INCOME (in millions of U.S. dollars, except per share data ($)) Three months ended June 28, June 29, 2025 2024 (Unaudited) (Unaudited) Net sales 2,745 3,227 Other revenues 21 5 NET REVENUES 2,766 3,232 Cost of sales (1,840) (1,936) GROSS PROFIT 926 1,296 Selling, general and administrative expenses (420) (419) Research and development expenses (514) (535) Other income and expenses, net 65 33 Impairment, restructuring charges and other related phase-out costs (190) - Total operating expenses (1,059) (921) OPERATING INCOME (LOSS) (133) 375 Interest income, net 45 51 Other components of pension benefit costs (5) (4) Loss on financial instruments, net (19) (1) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST (112) 421 Income tax benefit (expense) 18 (67) NET INCOME (LOSS) (94) 354 Net income attributable to noncontrolling interest (3) (1) NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS (97) 353 EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS (0.11) 0.39 EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS (0.11) 0.38 NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 893.9 941.1 STMicroelectronics N.V. CONSOLIDATED STATEMENTS OF INCOME (in millions of U.S. dollars, except per share data ($)) Six months ended June 28, June 29, 2025 2024 (Unaudited) (Unaudited) Net sales 5,257 6,670 Other revenues 26 27 NET REVENUES 5,283 6,697 Cost of sales (3,516) (3,958) GROSS PROFIT 1,767 2,739 Selling, general and administrative expenses (810) (844) Research and development expenses (1,004) (1,063) Other income and expenses, net 115 93 Impairment, restructuring charges and other related phase-out costs (198) - Total operating expenses (1,897) (1,814) OPERATING INCOME (LOSS) (130) 925 Interest income, net 93 111 Other components of pension benefit costs (9) (8) Gain (loss) on financial instruments, net 6 (1) INCOME (LOSS) BEFORE INCOME TAXES AND NONCONTROLLING INTEREST (40) 1,027 Income tax benefit (expense) 4 (159) NET INCOME (LOSS) (36) 868 Net income attributable to noncontrolling interest (5) (3) NET INCOME (LOSS) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS (41) 865 EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS (0.05) 0.96 EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS (0.05) 0.92 NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS 894.9 941.8 STMicroelectronics N.V. CONSOLIDATED BALANCE SHEETS As at June 28, March 29, December 31, In millions of U.S. dollars 2025 2025 2024 (Unaudited) (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents 1,616 1,781 2,282 Short-term deposits 1,650 1,650 1,450 Marketable securities 2,363 2,528 2,452 Trade accounts receivable, net 1,352 1,385 1,749 Inventories 3,273 3,014 2,794 Other current assets 1,267 1,050 1,007 Total current assets 11,521 11,408 11,734 Goodwill 313 299 290 Other intangible assets, net 342 338 346 Property, plant and equipment, net 11,437 11,178 10,877 Non-current deferred tax assets 558 490 464 Long-term investments 77 96 71 Other non-current assets 1,215 1,114 961 13,942 13,515 13,009 Total assets 25,463 24,923 24,743 LIABILITIES AND EQUITY Current liabilities: Short-term debt 1,006 988 990 Trade accounts payable 1,451 1,373 1,323 Other payables and accrued liabilities 1,386 1,290 1,306 Dividends payable to stockholders 257 16 88 Accrued income tax 104 72 66 Total current liabilities 4,204 3,739 3,773 Long-term debt 1,951 1,889 1,963 Post-employment benefit obligations 428 392 377 Long-term deferred tax liabilities 48 48 47 Other long-term liabilities 848 896 904 3,275 3,225 3,291 Total liabilities 7,479 6,964 7,064 Commitment and contingencies Equity Parent company stockholders' equity Common stock (preferred stock: 540,000,000 shares authorized, not issued; common stock: Euro 1.04 par value, 1,200,000,000 shares authorized, 911,281,920 shares issued, 894,759,029 shares outstanding as of June 28, 2025) 1,157 1,157 1,157 Additional Paid-in Capital 3,187 3,142 3,088 Retained earnings 12,911 13,514 13,459 Accumulated other comprehensive income 983 495 236 Treasury stock (490) (582) (491) Total parent company stockholders' equity 17,748 17,726 17,449 Noncontrolling interest 236 233 230 Total equity 17,984 17,959 17,679 Total liabilities and equity 25,463 24,923 24,743 STMicroelectronics N.V. SELECTED CASH FLOW DATA Cash Flow Data (in US$ millions) Q2 2025 Q1 2025 Q2 2024 Net Cash from operating activities 354 574 702 Net Cash used in investing activities (332) (796) (628) Net Cash used in financing activities (191) (282) (112) Net Cash decrease (165) (501) (41) Selected Cash Flow Data (in US$ millions) Q2 2025 Q1 2025 Q2 2024 Depreciation & amortization 464 428 439 Net payment for Capital expenditures (481) (538) (546) Dividends paid to stockholders (81) (72) (73) Change in inventories, net (140) (172) (136) AppendixSTChanges to reportable segments Following ST's reorganization announced in January 2024 into two Product Groups and four reportable segments, we have made further progress in analyzing our global product portfolio, resulting in the following adjustments to our segments, effective starting January 1, 2025, without modifying subtotals at Product Group level: In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group: The transfer of VIPower products from Power and Discrete products ('P&D') reportable segment to Analog products, MEMS and Sensors ('AM&S') reportable segment. In Microcontrollers, Digital ICs and RF products (MDRF) Product Group: the newly created 'Embedded Processing' ('EMP') reportable segment includes the former 'MCU' segment (excluding the RF ASICs mentioned below) as well as Custom Processing products (Automotive ADAS products). the newly created 'RF & Optical Communications' ('RF&OC') reportable segment includes the former 'D&RF' segment (excluding Automotive ADAS products) as well as some RF ASICs which were previously part of the former 'MCU' segment. We believe these adjustments are critical for implementing synergies and optimizing resources, which are necessary to fully deliver the benefits expected from our new organization. Our four reportable segments - within each Product Group - are now as follows: In Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group: Analog products, MEMS and Sensors ('AM&S') reportable segment, comprised of ST analog products (now including VIPower products), MEMS sensors and actuators, and optical sensing solutions. Power and Discrete products ('P&D') reportable segment, comprised of discrete and power transistor products (now excluding VIPower products). In this Press Release, 'Analog' refers to analog products, 'MEMS' to MEMS sensors and actuators and 'Imaging' to optical sensing solutions. In Microcontrollers, Digital ICs and RF products (MDRF) Product Group: Embedded Processing ('EMP') reportable segment, comprised of general-purpose and automotive microcontrollers, connected security products and Custom Processing Products (Automotive ADAS) RF & Optical Communications ('RF&OC') reportable segment, comprised of Space, Ranging & Connectivity products, Digital Audio & Signaling Solutions and Optical & RF COT. In this Press release, 'GPAM' refers to General purpose & automotive microcontrollers, 'Connected Security' to connected security products, 'Custom Processing' to automotive ADAS products. Prior year comparative periods have been adjusted accordingly. (Appendix – continued)ST Supplemental Financial Information Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Net Revenues By Market Channel (%) Total OEM 72% 71% 73% 76% 73% Distribution 28% 29% 27% 24% 27% €/$ Effective Rate 1.09 1.06 1.09 1.08 1.08 Reportable Segment Data (US$ m) Analog products, MEMS and Sensors (AM&S) segment - Net Revenues 1,133 1,069 1,348 1,340 1,336 - Operating Income 85 82 220 216 193 Power and Discrete products (P&D) segment - Net Revenues 447 397 602 652 576 - Operating Income (Loss) (56) (28) 45 80 61 Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group - Net Revenues 1,580 1,466 1,950 1,992 1,912 - Operating Income 29 54 265 296 254 Embedded Processing (EMP) segment - Net Revenues 847 742 1,002 898 906 - Operating Income 114 66 181 146 126 RF & Optical Communications (RF&OC) segment - Net Revenues 336 306 366 357 410 - Operating Income 60 43 95 84 96 Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group - Net Revenues 1,183 1,048 1,368 1,255 1,316 - Operating Income 174 109 276 230 222 Others (a) - Net Revenues 3 3 3 4 4 - Operating Income (Loss) (336) (160) (172) (145) (101) Total - Net Revenues 2,766 2,517 3,321 3,251 3,232 - Operating Income (Loss) (133) 3 369 381 375 (a) Net revenues of Others include revenues from sales assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment, restructuring charges and other related phase-out costs, management reorganization costs, start-up costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, as well as operating earnings of other products. Others includes: (US$ m) Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 (Appendix – continued)STSupplemental Non-U.S. GAAP Financial InformationU.S. GAAP – Non-U.S. GAAP Reconciliation The supplemental non-U.S. GAAP information presented in this press release is unaudited and subject to inherent limitations. Such non-U.S. GAAP information is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for U.S. GAAP measurements. Also, our supplemental non-U.S. GAAP financial information may not be comparable to similarly titled non-U.S. GAAP measures used by other companies. Further, specific limitations for individual non-U.S. GAAP measures, and the reasons for presenting non-U.S. GAAP financial information, are set forth in the paragraphs below. To compensate for these limitations, the supplemental non-U.S. GAAP financial information should not be read in isolation, but only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. ST believes that these non-U.S. GAAP financial measures provide useful information for investors and management because they offer, when read in conjunction with ST's U.S. GAAP financials, (i) the ability to make more meaningful period-to-period comparisons of ST's on-going operating results, (ii) the ability to better identify trends in ST's business and perform related trend analysis, and (iii) to facilitate a comparison of ST's results of operations against investor and analyst financial models and valuations, which may exclude these items. Non-U.S. GAAP Operating Income, Non-U.S. GAAP Net Earnings and Non-U.S. GAAP Earnings Per Share (non-U.S. GAAP measures) Operating income before impairment and restructuring charges and one-time items is used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items, such as impairment, restructuring charges and other related phase-out costs. Adjusted net earnings and earnings per share (EPS) are used by management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items like impairment, restructuring charges and other related phase-out costs attributable to ST and other one-time items, net of the relevant tax impact. Q2 2025(US$ m, except per share data) Gross Profit Operating Income (Loss) Net Earnings Corresponding Diluted EPS U.S. GAAP 926 (133) (97) (0.11) Impairment, restructuring charges and other related phase-out costs - 190 190 Estimated income tax effect - - (36) Non-U.S. GAAP 926 57 57 0.06H1 2025(US$ m, except per share data) Gross Profit Operating Income (Loss) Net Earnings Corresponding Diluted EPS U.S. GAAP 1,767 (130) (41) (0.05) Impairment, restructuring charges and other related phase-out costs - 198 198 Estimated income tax effect - - (37) Non-U.S. GAAP 1,767 68 120 0.13 (Appendix – continued) Net Financial Position and Adjusted Net Financial Position (non-U.S. GAAP measures) Net Financial Position, a non-U.S. GAAP measure, represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet. ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited. (US$ m) Jun 282025 Mar 292025 Dec 312024 Sep 282024 Jun 292024 Cash and cash equivalents 1,616 1,781 2,282 3,077 3,092 Short term deposits 1,650 1,650 1,450 977 975 Marketable securities 2,363 2,528 2,452 2,242 2,218 Total liquidity 5,629 5,959 6,184 6,296 6,285 Short-term debt (1,006) (988) (990) (1,003) (236) Long-term debt (a) (1,951) (1,889) (1,963) (2,112) (2,850) Total financial debt (2,957) (2,877) (2,953) (3,115) (3,086) Net Financial Position (non-U.S. GAAP) 2,672 3,082 3,231 3,181 3,199 Advances received on capital grants (361) (377) (385) (366) (402) Adjusted Net Financial Position (non-U.S. GAAP) 2,311 2,705 2,846 2,815 2,797 (a) Long-term debt contains standard conditions but does not impose minimum financial ratios. Committed credit facilities for $639 million equivalent, are currently undrawn. (Appendix – continued) Net Capex and Free Cash Flow (non-U.S. GAAP measures) ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-U.S. GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period. ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies. (US$ m) Q2 2025 Q12025 Q42024 Q3 2024 Q2 2024 Payment for purchase of tangible assets, as reported (574) (587) (584) (669) (690) Proceeds from sale of tangible assets, as reported 4 2 - 2 1 Proceeds from capital grants and other contributions, as reported 89 47 83 66 143 Advances from capital grants allocated to property, plant and equipment 16 8 31 36 18 Net Capex (non-U.S. GAAP) (465) (530) (470) (565) (528) Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any. ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations. Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies. (US$ m) Q2 2025 Q12025 Q42024 Q32024 Q2 2024 Net cash from operating activities 354 574 681 723 702 Net Capex (465) (530) (470) (565) (528) Payment for purchase of intangible assets, net of proceeds from sale (41) (14) (32) (20) (15) Payment for purchase of financial assets, net of proceeds from sale - - (51) (2) - Free Cash Flow (non-U.S. GAAP) (152) 30 128 136 1591 Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.2 Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.3 See Appendix for the definition of reportable segments. 4 Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important. Attachment C3349C - STMicroelectronics Q225 Earnings PRError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
26 minutes ago
- CNBC
China plans subsidy vouchers for seniors to ease strain on its aging population, drive consumption
China is planning to offer subsidy coupons to seniors in a rare use of direct fiscal support as Beijing seeks to ease the financial strain on its aging population and drive consumption of elderly-care services. The allowances will be paid monthly in the form of electronic coupons to cover part of the costs for seniors' care services, according to a joint statement issued by the ministry of civil affairs and ministry of finance on Wednesday. Chinese policymakers have avoided direct cash handouts similar to what the U.S. and Hong Kong offered during the pandemic to stimulate spending, even as they step up efforts to support employment and improve social welfare. "The financial burden that elderly care generates for Chinse households ... is one of major current constraints to reducing precautionary savings and boosting domestic consumption," said Alfredo Montufar-Helu, a Beijing-based advisor to multinational enterprises. Seniors will be assessed for their physical disability, and only those evaluated as "moderately, severely or completely disabled" will be allowed to claim such subsidies, according to the official statement. The allowances are currently set between 500 yuan and 800 yuan a month and can be used to pay for a portion of the costs for certain senior-care services, such as meal and bathing assistance, rehabilitation and day care. Details of the plan may be further "optimized" as authorities will run a pilot in select cities this month before a nationwide roll-out later this year. The scheme will last for 12 months. The measures could incentivize the adoption of such senior care services and ease the "hefty elderly care burden" for family members, said Tianchen Xu, senior economist at Economist Intelligence Unit. Echoing that view, Lynn Song, chief economist for Greater China at ING, said that while "strengthening of the social safety net has been one of the main goals in order to better unlock consumption, these measures can be interpreted as steps in this direction." As China's population ages and middle-class consumers facing job uncertainty scale back spending, the so-called silver economy — a sector that provides goods and services for people over 50 — has been on the rise, with more businesses targeting seniors who have accumulated sufficient retirement funds. "It's crucial for the government to keep pushing forward with reforms and strategies that tackle the deeper structural [supply-demand] imbalances," Montufar-Helu said. The fiscal aid will be primarily funded by the central government, with local authorities contributing a smaller share, according to the statement Wednesday. "Elder care is a key component of the country's broader services consumption ... the initiative is designed to foster new growth drivers and better align economic development with social welfare," the statement reads, translated by CNBC. Economists have ramped up calls for Beijing to prioritize policies aimed at strengthening the country's social safety net to tackle the aging population, high youth jobless rate and tepid domestic consumption. "Mounting demographic and economic pressures are forcing Beijing to highlight the social policy agenda in the upcoming 15th five-year plan," Eurasia Group said in a note Thursday. "Bolstering the social safety net, especially through changes to pensions and healthcare, is high on the agenda to adapt to a rapidly graying society," Eurasia Group said in a note Thursday. About 22% of China's population was aged 60 or older at the end of 2024, the statement said, up from 18.7% in 2020. The population aged 65 years and above in China reached 216.8 million in 2023, accounting for 15% of the total population.
CNBC
26 minutes ago
- CNBC
Estonia's tech elite are getting behind a European challenger to Robinhood
Some of the biggest names of Estonia's tech scene are backing Lightyear, a startup looking to become Europe's answer to commission-free trading pioneer Robinhood. Based in London, Lightyear develops an app that lets users invest in a range of over 5,000 stocks, exchange-traded funds and money market funds. It was founded by two former Wise employees, Martin Sokk and Mihkel Aamer, in 2021. The company is set to announce later on Thursday that it has raised $23 million in a new round of funding led by NordicNinja, a Japanese-backed venture capital fund based in Europe. Estonian tech entrepreneur Markus Villig, who co-founded ride-hailing unicorn Bolt has also invested. Lightyear CEO Sokk told CNBC that the firm didn't necessarily need to raise more cash for the business but chose to do so because of the caliber of investors involved. "People like Markus have been building massive companies in many, many markets, and this is something that's really exciting for us because it's so hard to go into all the markets and understand their local dynamics and what people need," he said. Lightyear currently operates in 25 countries. However, with help from angel investors like Bolt's Villig, the firm will be able to launch in another five markets "pretty quickly," Sokk said. Villig told CNBC that it can be "challenging to scale a business across multiple countries in a heavily regulated sector," adding that Europe's less developed retail investing market provides ample opportunities for disruption. Other Estonian angel investors who have previously backed Lightyear also participated in the funding round, including Wise co-founder Taavet Hinrikus, former Chief Technology Officer Ott Kaukver and Skype founding engineer Jaan Tallinn. Estonia is widely considered a prominent tech hub in Europe. The country is home to the highest number of unicorns per capita in Europe, according to the Estonian Investment Agency. Meanwhile, Estonia's e-residency scheme has also enabled foreigners to become digital residents and launch their companies in the country. The new round values five-year-old Lightyear at between $200 million and $300 million, significantly higher than its valuation in 2022 when it raised $25 million, according to two people familiar with the matter who preferred to remain anonymous as the information has not been made public. Alongside the additional funding, Lightyear is also launching new artificial intelligence features. AI has been a hot area of investment for startups following the explosive popularity of generative AI services like OpenAI's ChatGPT. One of the features, called "Why Did It Move," allows users to select a point in time on a stock chart and see what happened that day to cause a jump or fall in a company's share price. The firm is also using AI to provide "bull" and "bear" theses on stocks as well as short updates on assets in their own portfolios. "In the end, you're going to have two models" when it comes to investing, according to Sokk: "Self-driving money," where you ask an AI to achieve certain investment goals, and a "manual gearbox" approach of figuring out different strategies and approaches on your own. Still, the market for online investment products is heavily competitive. Lightyear faces some hefty competition from both incumbent brokerage services as well as more modern tech players such as Robinhood, Revolut and Trade Republic. However, Sokk insists Lightyear is building a differentiated enough product to stand out from the crowd. While competitors like Robinhood profit from offering risky products like crypto and margin trading, Lightyear is focused on serving long-term investors, he told CNBC. To that end, Sokk said Lightyear is planning on rolling out a crypto product of its own in two months' time — one that's "more focused on a long-term view."
