Research · Sep 3, 2026
[STM] STMicroelectronics Thesis 2026: Automotive Silicon Carbide Tests Inventory Recovery
STMicroelectronics N.V. (NYSE: STM) FY2025 revenue ~$13.5-14.5B (-15 to -22%) with adj. EPS ~$0.65-0.95 reflecting continued post-2024 automotive + industrial inventory correction cycle (vs FY2022-2023 peak ~$17.3B revenue) plus selected post-2024 silicon carbide (SiC) demand sustainability + post-2024 Italian state ~28% ownership + selected post-2024 ~$5-6B aggregate FY2025-2027 capex moderation under continued President + CEO Jean-Marc Chery (~7-year tenure since June 2018 sole CEO). Global semiconductor manufacturer with operations across automotive + industrial + personal electronics + communication equipment + computer peripherals semiconductor manufacturing in 35+ countries. Founded June 1987 via SGS Microelettronica (Italy) + Thomson Semiconducteurs (France) merger creating selected combined Italian-French state-controlled semiconductor entity; selected post-1994 Borsa Italiana + NYSE + Euronext Paris triple listing IPO; selected post-1998 SGS-Thomson Microelectronics → STMicroelectronics rebrand reflecting selected international scope; selected post-2002 Italian + French state ownership reduction toward ~50% combined; selected post-2024 Italian + French state ownership ~28% Italian + ~12% French combined (~40% aggregate state control); selected post-2024 Italian state secondary offering selected ownership reduction. Headquartered in Geneva Switzerland (selected post-merger neutral domicile); ~50,000+ employees globally with ~$13.5-14.5B revenue. Three primary product groups: Automotive and Discrete (~50% revenue ~$6.5-7B), Analog, MEMS and Sensors (~30% revenue ~$4-4.5B), Microcontrollers, Digital ICs and RF Products (~20% revenue ~$2.5-3B). Automotive + industrial inventory correction cycle: post-2024 selected automotive + industrial customer destocking driving ~-15-22% YoY revenue decline FY2025; FY2022 peak $16.13B → FY2023 $17.29B (peak) → FY2024 $13.27B → FY2025 $13.5-14.5B (trough); inventory days normalization toward ~110-120 days (vs ~130-140 days FY2023 peak); FY2026 catalyst: continued inventory normalization + recovery. Silicon Carbide (SiC) franchise: ~$1.0-1.5B aggregate FY2025 SiC revenue (~7-10% revenue mix); ~30%+ aggregate global SiC market share; Tesla + selected various automotive OEMs + selected various commercial vehicle + selected various industrial customers; ~$5B aggregate FY2024-2027 SiC capacity expansion covering Catania Italy + Agrate Italy + Singapore; selected post-2024 EV slowdown moderation + Wolfspeed + onsemi + selected Chinese SiC competitive pricing; FY2026 catalyst: continued SiC capacity ramp + ~$1.3-1.8B FY2026 SiC revenue. Italian + French state ownership: ~28% Italian state (post-2024 reduction from ~30%) + ~12% French state (Bpifrance + Etat-Français); ~40% combined state control; ~60% public float NYSE + Borsa Italiana + Euronext Paris. President + CEO Jean-Marc Chery since June 2018 sole CEO (~7-year tenure; succeeded Carlo Bozotti CEO 2005-June 2018 retired); CFO Lorenzo Grandi. Capital return: ~$0.36 annual dividend FY2025 (~$0.09/quarter); ~$300-500M aggregate FY2025 buybacks; selected post-2024 net cash position ~$3-4B; investment-grade A3/A- credit rating. FY2026 thesis: automotive + industrial inventory recovery + SiC franchise leadership + ~$1B+ aggregate cost reduction + post-2024 Italian state ownership reduction + cyclical recovery. Risks: inventory correction cycle sustainability, EV demand deceleration, SiC competitive pricing (Wolfspeed + onsemi + Chinese), Italian + French state ownership concentration + policy influence, USD/EUR currency volatility.