STMicroelectronics Reports Q4, FY 2022 Financial Results

STMicroelectronics reported U.S. GAAP financial results for the fourth quarter ended Dec. 31, 2022. ST reported fourth quarter net revenues of $4.42 billion, gross margin of 47.5%, operating margin of 29.1%, and net income of $1.25 billion or $1.32 diluted earnings per share.

FY 2022 net revenues were $16.13 billion, with a gross margin of 47.3%, operating margin of 27.5% and net income of $3.96 billion.

“In Q4, ST delivered revenues and gross margin above the mid-point of the guidance,” said Jean-Marc Chery, STMicroelectronics president and CEO. “FY22 revenues increased 26.4% to $16.13 billion, driven by strong demand in automotive and industrial, and our engaged customer programs. Operating margin increased to 27.5% from 19.0% in FY21 and net income almost doubled to $3.96 billion. We invested $3.52 billion in CAPEX while delivering free cash flow of $1.59
billion.

“Our first quarter business outlook, at the mid-point, is for net revenues of $4.20 billion, increasing year-over-year by 18.5% and decreasing sequentially by 5.1%; gross margin is expected to be about 48.0%,” added Chery. “For 2023, we plan to invest about $4.0 billion in CAPEX, mainly to increase our 300mm wafer fabs and silicon carbide manufacturing capacity including our substrate initiative.”

Net cash from operating activities was $1.55 billion in the fourth quarter. For the full year 2022, net cash from operating activities increased 70% to $5.2 billion, representing 32.3% of total revenues.

Free cash flow (non-U.S. GAAP) was $603 million and $1.59 billion in the fourth quarter and full year, respectively, compared to $314 million and $1.12 billion in the year-ago respective periods.