Author: Newsdesk

PR N° C3420C

STMicroelectronics Announces Updates to its Organization and Leadership Appointments

Geneva, October 29, 2026 – STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announced today a new organization to further strengthen its positioning for the next phase of growth and innovation.

Remi El-Ouazzane is confirmed President, member of the Executive Committee, Head of Microcontrollers, Digital ICs, RF and Optical Communication Products. In addition to his current responsibilities, he will also take on leadership of the Imaging Sensors Sub-Group and will be appointed ST Chief Technology Officer (CTO).
In his new CTO role El-Ouazzane will take on leadership of R&D for digital CMOS and derivative technologies such as RF mixed-signal, embedded flash, and imaging, advanced packaging and test and characterization, as well as Global System Research & Applications and System Engineering. This evolution is intended to enhance coordination across product development, research, and technology activities across the Company to ultimately boost innovation and time-to-market.

Marco Cassis is confirmed President, member of the Executive Committee, head of Analog, Power & Discrete and MEMS Products. In addition to his current responsibilities, he will take on leadership of R&D for Analog, Power & Discrete and MEMS technologies. This evolution is intended to accelerate the profitable growth of this Product Group.
Cassis’ responsibilities as head of ST strategy remain unchanged and he will be appointed ST Chief Strategic Officer (CSO). In his new CSO role he will align ST’s vision and business objectives with evolving market dynamics, identifying growth, partnership and bolt-on M&A opportunities while anticipating the competitive landscape.

Jean-Marc Chery, ST President & CEO, said: “The CTO and CSO responsibilities are strongly interdependent, and in their respective roles Remi and Marco, together with ST’s Managing Board and Executive Committee, will ensure stronger coordination between the Company’s strategy and its advanced technology and product roadmaps, to support ST’s long-term direction and growth opportunities”.

The remainder of the organization is unchanged.

The new organization will take effect on January 1, 2027, with implementation to be completed by the end of March 2027.

The Company will adjust its reportable segments from January 1, 2027.

About STMicroelectronics

At ST, we are 49,000 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 www.st.com   

For more information, please contact:

INVESTOR RELATIONS
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41.22.929.59.20
[email protected]    
  
MEDIA RELATIONS
Alexis Breton
Group VP Corporate External Communications
Tel: +33.6.59.16.79.08
[email protected]

Attachment

• C3420C – ST – Updates organization-leadership appointments – 29oct2026

PR No: C3419C

STMicroelectronics Reports Q3 2026 Financial Results

• Q326 net revenues at $3.76 billion
• Gross margin at 37.3%
• Operating income at $367 million (non-U.S. GAAP
  
  ¹
  
  operating income at $429 million)
• Business outlook at mid-point: Q426 net revenues of $4.15
  billion and gross margin of
  39.0
  %

Geneva, October 29, 2026 – 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 third quarter ended September 26, 2026. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported third quarter net revenues of $3.76 billion, gross margin of 37.3%, operating income of $367 million, and net income of $291 million or $0.31 diluted earnings per share (non-U.S. GAAP¹ operating income of $429 million, and non-U.S. GAAP¹ net income of $344 million or $0.37 diluted earnings per share).

Jean-Marc Chery, ST President & CEO, commented:

• “Q3 net revenues came above the mid-point of our business outlook range, driven by higher revenues in CECP and Personal Elect
  ronics. Gross margin was above the mid-point of our business outlook range.”
• “On a year-over-year basis, Q3 net revenues increased 17.9%
  .
  Q3 gross margin was 37.3%, operating margin was 9.8% and net income was $291 million. On a non-U.S.
  GAAP
  
  ¹
  
  basis
  operating margin was 11.4% and net income was $344 million.”
• “During the quarter, demand increased further supported by strong bookings and improving visibility, while inventory in distribution continued to track below our standard target. Together, these indicators confirm the continued ongoing recovery and secular growth across the markets we serve.”
• “Our fourth quarter business outlook, at the mid-point, is for net revenues of $4.15 billion, increasing about 10.5% sequentially and about 24.7% year-over-year. Gross margin is expected to be about 39.0%, including about 40 basis points of unused capacity charges.”
• “The mid-point of this outlook translates into full year 2026 revenues of about $14.5 billion, representing a 22.8% year-over-year increase. Beyond the cyclical recovery across our end markets, the year-over-year growth is supported by ST’s company specific growth drivers, including AI datacenters and LEO satellite communication. Gross margin is expected to be about 36.4%, non-U.S. GAAP
  
  ¹
  
  gross margin is expected to be about 36.6%, representing an improvement of 270 basis points versus FY25.”
• “In an environment where demand remains well above supply, we continue to expand capacity aligned with ST’s strategic roadmap. We remain focused on improving profitability consistent with our intermediate financial model. This is driven by our company-specific growth drivers and the execution of 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)	Q3 2026	Q2 2026	Q3 2025	Q/Q	Y/Y
Net Revenues	$3,757	$3,487	$3,187	7.7%	17.9%
Gross Profit	$1,401	$1,215	$1,059	15.3%	32.2%
Gross Margin	37.3%	34.8%	33.2%	250 bps	410 bps
Operating Income	$367	$187	$180	96.4%	104.5%
Operating Margin	9.8%	5.4%	5.6%	440 bps	420 bps
Net Income	$291	$222	$237	31.2%	22.8%
Diluted Earnings Per Share	$0.31	$0.24	$0.26	29.2%	19.2%
Non-U.S. GAAP 1 (US$ m, except per share data)	Q3 2026	Q2 2026	Q3 2025	Q/Q	Y/Y
Gross Profit	$1,401	$1,229	$1,059	14.0%	32.2%
Gross Margin	37.3%	35.2%	33.2%	210 bps	410 bps
Operating Income	$429	$269	$217	59.3%	98.0%
Operating Margin	11.4%	7.7%	6.8%	370 bps	460 bps
Net Income	$344	$291	$267	17.9%	28.7%
Diluted Earnings Per Share	$0.37	$0.31	$0.29	19.4%	27.6%

Third Quarter 2026 Summary Review

Net Revenues by Reportable Segment 2 (US$ m)	Q3 2026	Q2 2026	Q3 2025	Q/Q	Y/Y
Analog products, MEMS and Sensors (AM&S) segment	1,560	1,426	1,434	9.4%	8.8%
Power and discrete products (P&D) segment	477	464	429	2.8%	11.3%
Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group	2,037	1,890	1,863	7.7%	9.4%
Embedded Processing (EMP) segment	1,212	1,147	976	5.7%	24.1%
RF Optical Communications (RFOC) segment	504	445	345	13.4%	46.2%
Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group	1,716	1,592	1,321	7.8%	29.9%
Others	4	5	3	–	–
Total Net Revenues	$3,757	$3,487	$3,187	7.7%	17.9%

Net revenues
totaled $3.76 billion, representing a year-over-year increase of 17.9%. Year-over-year net sales to OEMs and Distribution increased 10.2% and 38.8%, respectively. On a sequential basis, net revenues increased 7.7%, 150 basis points better than the mid-point of ST’s guidance.

Gross profit
totaled $1.40 billion, representing a year-over-year increase of 32.2%. Gross margin of 37.3%, increased 410 basis points year-over-year, mainly due to lower unused capacity charges and better product mix.

Operating income
increased from $180 million in the year-ago quarter to $367 million. ST’s operating margin increased on a year-over-year basis to 9.8% of net revenues, compared to 5.6% in the third quarter of 2025. Operating income included $55 million impairment, restructuring charges and other related phase-out costs for the quarter, mainly reflecting charges related to the execution of our company-wide program to reshape our manufacturing footprint and resize our global cost base and $7 million purchase price allocation (PPA) effects from the acquisition of NXP’s MEMS sensor business. Excluding these items, non-U.S. GAAP¹ Operating income stood at $429 million in the third quarter (or 11.4% non-U.S. GAAP¹ operating margin).

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)² segment:

• Revenue increased 8.8% mainly due to MEMS and, to a lesser extent, Analog and Imaging.   
• Operating profit decreased by 0.6% to $219 million. Operating margin was 14.1% compared to 15.4%.

Power and Discrete products (P&D) segment:

• Revenue increased 11.3%.
• Operating results decreased from a loss of $67 million to a loss of $81 million. Operating margin was -17.1% compared to -15.6%.

In Microcontrollers, Digital ICs and RF products (MDRF) Product Group:

Embedded Processing (EMP) segment:

• Revenue increased 24.1% mainly due to General Purpose MCU.
• Operating profit increased by 74.2% to $280 million. Operating margin was 23.1% compared to 16.5%.

RF Optical Communications (RFOC) segment:

• Revenue increased 46.2%.
• Operating profit increased by 131.2% to $132 million. Operating margin was 26.2% compared to 16.6%.

Net income
and diluted Earnings Per Share increased to $291 million and $0.31 respectively, compared to $237 million and $0.26 respectively in the year-ago quarter. In the third quarter of 2026 non-U.S. GAAP¹ Net income stood at $344 million and non-U.S. GAAP¹ diluted Earnings Per Share stood at $0.37.

Cash Flow and Balance Sheet Highlights

				Trailing 12 Months
(US$ m)	Q3 2026	Q2 2026	Q3 2025	Q3 2026	Q3 2025	TTM Change
Net cash from operating activities	1,020	502	549	2,730	2,158	26.5%
Free cash flow (non-U.S. GAAP1)	351	75	130	(40)2	136	–

Net cash from operating activities was $1.02 billion in the third quarter compared to $549 million in the year-ago quarter.

Net Capex (non-U.S. GAAP¹), was $643 million in the third quarter compared to $401 million in the year-ago quarter.

Free cash flow (non-U.S. GAAP¹) was positive at $351 million in the third quarter compared to positive $130 million in the year-ago quarter.

Inventory at the end of the third quarter was $3.25 billion, compared to $3.19 billion in the previous quarter and $3.17 billion in the year-ago quarter. Days sales of inventory at quarter-end was 126 days, same as the previous quarter and compared to 135 days for the year-ago quarter.

In the third quarter, ST paid cash dividends to its stockholders totaling $83 million and executed a $91 million share buyback, as part of its current share repurchase program.

ST’s net financial position (non-U.S. GAAP³) remained strong at $2.11 billion as of September 26, 2026, compared to $2.01 billion as of June 27, 2026, and reflected total liquidity of $5.31 billion and total financial debt of $3.21 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 $1.81 billion as of September 26, 2026.

Following the exercise of the call option for the early redemption of ST’s convertible debt due in 2027, bondholders exercised their conversion rights on the total of $750 million convertible bonds. ST settled the bond on a net-share basis, delivering $750 million in cash and about 4.2 million shares from treasury stock.

Business Outlook

ST’s guidance, at the mid-point, for the 2026 fourth quarter is:

• Net revenues are expected to be $4.15 billion, an increase of 10.5% sequentially, plus or minus 350 basis points.
• Gross margin of 39.0%, 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 2026 fourth quarter and includes the impact of existing hedging contracts.
• The fourth quarter will close on December 31, 2026.

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 third quarter 2026 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, https://investors.st.com, and will be available for replay until November 13, 2026.

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 continuation, adoption and expansion of tariffs and trade barriers and sanctions, that are affecting and could further affect the macro-economic environment and are adversely impacting and could further adversely impact the demand for our products;
• uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which are impacting and may further 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 research and development 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 intellectual property 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, 2025 as filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026. 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 SEC filings, could have a material adverse effect on our business and/or financial condition.

About STMicroelectronics

At ST, we are 49,000 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 cloudconnected 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 www.st.com.

For further information, please contact:

INVESTOR RELATIONS:

Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41 22 929 59 20
[email protected]

MEDIA RELATIONS:

Alexis Breton
Corporate External Communications
Tel: + 33 6 59 16 79 08
[email protected]

STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data ($))
	Three months ended
	September 26,	September 27,
	2026	2025
	(Unaudited)	(Unaudited)
Net sales	3,748	3,183
Other revenues	9	4
NET REVENUES	3,757	3,187
Cost of sales	(2,356)	(2,128)
GROSS PROFIT	1,401	1,059
Selling, general and administrative expenses	(448)	(395)
Research and development expenses	(545)	(502)
Other income and expenses, net	14	55
Impairment, restructuring charges and other related phase-out costs	(55)	(37)
Total operating expenses	(1,034)	(879)
OPERATING INCOME	367	180
Interest income	51	51
Interest expense	(17)	(13)
Other components of pension benefit costs	(4)	(4)
Gain (loss) on financial instruments, net	(39)	79
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST	358	293
Income tax expense	(66)	(54)
NET INCOME	292	239
Net income attributable to noncontrolling interest	(1)	(2)
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	291	237
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.33	0.27
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.31	0.26
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS	931.7	918.9

STMicroelectronics N.V.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of U.S. dollars, except per share data ($))
	Nine months ended
	September 26,	September 27,
	2026	2025
	(Unaudited)	(Unaudited)
Net sales	10,318	8,440
Other revenues	21	30
NET REVENUES	10,339	8,470
Cost of sales	(6,678)	(5,643)
GROSS PROFIT	3,661	2,827
Selling, general and administrative expenses	(1,321)	(1,205)
Research and development expenses	(1,616)	(1,506)
Other income and expenses, net	85	169
Impairment, restructuring charges and other related phase-out costs	(184)	(235)
Total operating expenses	(3,036)	(2,777)
OPERATING INCOME	625	50
Interest income	131	173
Interest expense	(45)	(42)
Other components of pension benefit costs	(13)	(13)
Gain (loss) on financial instruments, net	(32)	85
INCOME BEFORE INCOME TAXES AND NONCONTROLLING INTEREST	666	253
Income tax expense	(106)	(50)
NET INCOME	560	203
Net income attributable to noncontrolling interest	(10)	(7)
NET INCOME ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	550	196
EARNINGS PER SHARE (BASIC) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.62	0.22
EARNINGS PER SHARE (DILUTED) ATTRIBUTABLE TO PARENT COMPANY STOCKHOLDERS	0.60	0.21
NUMBER OF WEIGHTED AVERAGE SHARES USED IN CALCULATING DILUTED EPS	924.8	927.8

STMicroelectronics N.V.
CONSOLIDATED BALANCE SHEETS
As at	September 26,	June 27,	December 31,
In millions of U.S. dollars	2026	2026	2025
	(Unaudited)	(Unaudited)	(Audited)
ASSETS
Current assets:
Cash and cash equivalents	2,612	3,096	2,837
Short-term deposits	1,400	1,800	1,100
Marketable securities	1,300	1,136	985
Trade accounts receivable, net	2,190	2,067	1,745
Inventories	3,248	3,188	3,136
Other current assets	1,488	1,410	1,468
Total current assets	12,238	12,697	11,271
Goodwill	704	705	315
Other intangible assets, net	732	747	324
Property, plant and equipment, net	11,116	10,895	11,058
Non-current deferred tax assets	413	435	408
Long-term investments	111	144	152
Other non-current assets	1,350	1,409	1,272
	14,426	14,335	13,529
Total assets	26,664	27,032	24,800
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt	309	1,063	298
Trade accounts payable	1,840	1,774	1,487
Other payables and accrued liabilities	1,504	1,406	1,440
Dividends payable to stockholders	182	265	89
Accrued income tax	81	62	37
Total current liabilities	3,916	4,570	3,351
Long-term debt	2,897	2,962	1,835
Post-employment benefit obligations	386	382	403
Long-term deferred tax liabilities	55	58	60
Other long-term liabilities	1,126	1,010	926
	4,464	4,412	3,224
Total liabilities	8,380	8,982	6,575
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, 895,970,755 shares outstanding as of September 26, 2026)	1,157	1,157	1,157
Additional Paid-in Capital	3,333	3,373	3,281
Retained earnings	13,157	12,888	13,082
Accumulated other comprehensive income	702	732	945
Treasury stock	(472)	(506)	(637)
Total parent company stockholders’ equity	17,877	17,644	17,828
Noncontrolling interest	407	406	397
Total equity	18,284	18,050	18,225
Total liabilities and equity	26,664	27,032	24,800

STMicroelectronics N.V.
SELECTED CONSOLIDATED CASH FLOW DATA
Cash Flow Data (in US$ millions)	Q3 2026	Q2 2026	Q3 2025
Net Cash from operating activities	1,020	502	549
Net Cash from (used in) investing activities	(462)	(686)	815
Net Cash from (used in) financing activities	(1,041)	1,392	(980)
Net Cash increase (decrease)	(484)	1,207	383
Selected Cash Flow Data (in US$ millions)	Q3 2026	Q2 2026	Q3 2025
Depreciation & amortization	504	492	482
Net payment for Capital expenditures	(649)	(419)	(417)
Net proceeds from issuance of convertible bonds	–	1,490	–
Settlement of issued convertible bonds	(750)	–	(750)
Dividends paid to stockholders	(83)	(75)	(81)
Change in inventories, net	(61)	(42)	98

Appendix

ST Supplemental Financial Information

	Q3 2026	Q2 2026	Q1 2026	Q4 2025	Q3 2025
Net Revenues By Market Channel (%)
Total OEM	68%	70%	72%	73%	73%
Distribution	32%	30%	28%	27%	27%
€/$ Effective Rate	1.15	1.16	1.16	1.14	1.14
Reportable Segment Data (US$ m)
Analog products, MEMS and Sensors (AM&S) segment
– Net Revenues	1,560	1,426	1,318	1,449	1,434
– Operating Income	219	144	161	235	221
Power and Discrete products (P&D) segment
– Net Revenues	477	464	389	412	429
– Operating Income (Loss)	(81)	(99)	(84)	(124)	(67)
Subtotal: Analog, Power & Discrete, MEMS and Sensors (APMS) Product Group
– Net Revenues	2,037	1,890	1,707	1,861	1,863
– Operating Income	138	45	77	111	154
Embedded Processing (EMP) segment
– Net Revenues	1,212	1,147	975	1,015	976
– Operating Income	280	226	164	195	161
RF Optical Communications (RFOC) segment
– Net Revenues	504	445	409	449	345
– Operating Income	132	94	61	105	57
Subtotal: Microcontrollers, Digital ICs and RF products (MDRF) Product Group
– Net Revenues	1,716	1,592	1,384	1,464	1,321
– Operating Income	412	320	226	300	218
Others (a)
– Net Revenues	4	5	4	4	3
– Operating Income (Loss)	(183)	(178)	(232)	(286)	(192)
Total
– Net Revenues	3,757	3,487	3,095	3,329	3,187
– Operating Income	367	187	70	125	180

(a)   Net revenues of Others include revenues from sales of 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, operating earnings of other products as well asPPA effects from the acquisition of NXP’s MEMS sensor business. With additional cost elements included in the table below:

(US$ m)	Q3 2026	Q2 2026	Q1 2026	Q4 2025	Q3 2025
Unused capacity charges	23	37	69	88	102
Impairment, restructuring charges and other related phase-out costs	55	58	71	141	37
PPA effects from the acquisition of NXP’s MEMS sensor business	7	24	30	–	–

(Appendix – continued)

ST Supplemental Non-U.S. GAAP Financial Information

U.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 measures. 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 Gross Profit, Non-U.S. GAAP Operating Income, Non-U.S. GAAP Net Income and Non-U.S. GAAP Diluted Earnings Per Share (non-U.S. GAAP measures)

Operating income before impairment, restructuring charges and other related phase-out costs, and other certain 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, and PPA effects. Non-U.S. GAAP gross profit is also used by management to communicate the impact of PPA effects on gross margin. 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 and other certain items, such as PPA effects, net of the relevant tax impact.

Q3 2026 (US$ m, except per share data)	Gross Profit	Operating Income	Net Income	Corresponding Diluted EPS
U.S. GAAP	1,401	367	291	0.31
Impairment, restructuring charges and other related phase-out costs	–	55	55
PPA effects of NXP’s MEMS sensor business acquisition	–	7	7
Estimated income tax effect	–	–	(9)
Non-U.S. GAAP	1,401	429	344	0.37

(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)	Sep 26 2026	Jun 27 2026	Mar 28 2026	Dec 31 2025	Sep 27 2025
Cash and cash equivalents	2,612	3,096	1,889	2,837	1,999
Short term deposits	1,400	1,800	1,850	1,100	1,450
Marketable securities	1,300	1,136	832	985	1,327
Total liquidity	5,312	6,032	4,571	4,922	4,776
Short-term debt	(309)(b)	(1,063)(b)	(319)	(298)	(256)
Long-term debt (a)	(2,897)	(2,962)	(2,250)	(1,835)	(1,910)
Total financial debt	(3,206)	(4,025)	(2,569)	(2,133)	(2,166)
Net Financial Position (non-U.S. GAAP)	2,106	2,007	2,002	2,789	2,610
Advances received on capital grants	(300)	(306)	(316)	(333)	(345)
Adjusted Net Financial Position (non-U.S. GAAP)	1,806	1,701	1,686	2,456	2,265

^(a)  
Long-term debt contains standard conditions but does not impose minimum financial ratios.
C
ommitted credit facilities for $
1,
19
8
m
illion
equivalent
are currently undrawn.

^(b)  
During Q326 ST net settled its convertible bond due 2027 delivering $750 million in cash and about 4.2 million shares from treasury stock. Q226 short-term debt includes $750 million after the announcement of the early redemption of the convertible bonds due 2027.

(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, and therefore, comparability may be limited.

(US$ m)	Q3 2026	Q2 2026	Q1 2026	Q4 2025	Q3 2025
Payment for purchase of tangible assets, as reported	(683)	(453)	(549)	(518)	(431)
Proceeds from capital grants and other contributions, as reported	31	34	167	111	11
Advances from capital grants allocated to property, plant and equipment	6	10	17	12	16
Proceeds from sale of tangible assets, as reported	3	–	3	–	3
Net Capex (non-U.S. GAAP)	(643)	(409)	(362)	(395)	(401)

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, and therefore, comparability may be limited.

(US$ m)	Q3 2026	Q2 2026	Q1 2026	Q4 2025	Q3 2025
Net cash from operating activities	1,020	502	534	674	549
Net Capex	(643)	(409)	(362)	(395)	(401)
Payment for purchase of intangible assets, net of proceeds from sale	(20)	(31)	(17)	(20)	(18)
Proceeds from (payment for) financial assets	(6)	13	17	(2)	–
Payment for business acquisitions(a)	–	–	(895)	–	–
Free Cash Flow (non-U.S. GAAP)	351	75	(723)	257	130

^(a)   
Q126 Free cash flow includes
$895 million cash-out related to the acquisition of NXP MEMS sensor business
.

(Appendix – continued)

Financial Calendar

The financial calendar for the remaining of 2026 is as follows:

December 16, 2026 – January 28, 2027                 Quiet period

January 28, 2027                                 Q4 2026 Financial Results

The financial calendar for 2027 is as follows:

March 16, 2027 – April 22, 2027                         Quiet period

April 22, 2027                                         Q1 2027 Financial Results

June 16, 2027 – July 22, 2027                         Quiet period

July 22, 2027                                         Q2 2027 Financial Results

September 16, 2027 – October 21, 2027                 Quiet period

October 21, 2027                                 Q3 2027 Financial Results

These dates are preliminary and are subject to final confirmation.

---

¹
Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.


¹

Non-U.S. GAAP. See
Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.


²

Q
3
26 Analog products, MEMS and Sensors (AM&S) segment included revenues associated with NXP’s MEMS sensor business.

³
Non-U.S. GAAP. See Appendix for reconciliation to U.S. GAAP and information explaining why the Company believes these measures are important.


²

Q126
Free cash flow includes $895 million cash-out related to the acquisition of NXP MEMS sensor business
.

Attachment

• C3419C – ST – Q326 Earnings PR – 29oct2026

• Dosing ongoing in fully recruited dose level 2 of MP0712 Phase 1/2a study; initial safety data to be presented at North America Conference on Lung Cancer in December 2026, efficacy data expected in 2027
• Emerging clinical data from lead Radio-DARPin candidate MP0712 enables strategic focus on radiopharmaceuticals
• Streamlining of organization, in line with corporate focus, to advance Radio-DARPin programs
• Cash position of CHF 57.5 million (USD ~69 million) as of September 30, 2026, expected to fund operations into late 2027

ZURICH-SCHLIEREN, Switzerland and CONCORD, Mass., Oct. 29, 2026 (GLOBE NEWSWIRE) — Ad hoc announcement pursuant to Art. 53 LR Molecular Partners AG (SIX, NASDAQ: MOLN), a clinical-stage biotech company developing a novel class of medicines known as DARPin therapeutics, (“Molecular Partners” or the “Company”), today announced corporate highlights and unaudited financial results for the third quarter of 2026, as well as a deepened focus on radiopharmaceuticals and streamlining of its resources.

“This third quarter marked a decisive step in Molecular Partners’ transformation into a dedicated radiopharmaceuticals company. Encouraged by the emerging Phase 1/2a data from MP0712, our DLL3 Radio-DARPin for SCLC, we believe now is the time to focus on targeted radiotherapy. With efficacy data expected in 2027, we will continue to execute our lead asset MP0712 and advance our clinical Radio-DARPin programs to deliver value to shareholders and meaningful benefit to cancer patients,” said Patrick Amstutz, Ph.D., CEO of Molecular Partners.

Focused Strategy & Shaping of Organization to Advance Radiotherapeutics:

Based on the emerging clinical profile of MP0712, Molecular Partners is deepening its strategic focus on radiotherapeutic medicines, with priority on executing on the Phase 1/2a study of its lead clinical candidate MP0712, and on advancing its growing pipeline of Radio-DARPin therapeutics, with the ambition to build a leading radiopharmaceuticals company.

Reflective of its corporate focus, the Company will streamline its capabilities and resources to support the successful development of its Radio-DARPin programs in the clinic. The Company has informed the Amt für Wirtschaft of Kanton Zürich (Office for Economic Affairs) of its intention to reduce its current workforce by no more than 55 positions, representing a potential of up to ~44% of positions. In accordance with Swiss employment law, a consultation process with employees has been initiated. Upon completion of the consultation process, the Company will offer affected employees support. Molecular Partners foresees the full implementation of these changes enacted by Q2 2027 and the reduction of costs to become fully effective early in H2 2027.

Molecular Partners maintains its previously announced timelines on its clinical assets.

Research & Development Highlights

MP0712 (DLL3-targeting Radio-DARPin Therapy, RDT)

MP0712, the Company’s lead Radio-DARPin candidate targeting the tumor-associated antigen delta-like ligand 3 (DLL3) and carrying the therapeutic alpha-emitting payload ²¹²Pb, is being co-developed with strategic partner Orano Med, a pioneer in the development of ²¹²Pb-based targeted alpha therapies, for the treatment of small cell lung cancer (SCLC) and other neuroendocrine cancers.

The U.S. multicenter Phase 1/2a study of MP0712 (NCT07278479) is well underway with dosing ongoing in the fully recruited dose level 2 (105 MBq per dose) and 8 sites open. All 9 planned sites are expected to open in 2026. All patients in dose level 1 (75 MBq per dose) passed the safety observation period, with no dose-limiting events observed. All adverse events reported to date were mild to moderate (grade 1–2) and transient, resolving in time for the next regular dosing cycle. Initial safety data will be presented at the IASLC / ASCO North America Conference on Lung Cancer (NACLC) in December 2026. Efficacy data are expected in 2027.

Next RDT Programs

Molecular Partners pursues an isotope-agnostic strategy for its pipeline of targeted alpha therapeutics. The versatility of DARPins allows interchangeability of alpha isotopes, including ²¹²Pb and ²²⁵Ac and corresponding chelators, enabling candidates to be tailored to a specific target and disease biology.

The Nuclear Medicine Research Infrastructure (NuMeRI) has initiated an early-access clinical program, under the legal framework for compassionate care in South Africa, to image and treat patients with MP0714, a DLL3-targeting Radio-DARPin labeled with ¹⁷⁷Lu and ²²⁵Ac, respectively.

The Company’s MSLN-targeting RDT program MP0726 is advancing to first-in-human imaging in H2 2026. In addition, Molecular Partners has nominated MP0730, targeting the tumor-associated antigen CD70, as the third asset for its growing RDT pipeline. At the Discovery on Target – Radioligand Therapies conference in October 2026, the Company presented first data outlining an attractive biodistribution profile of MP0730 in tumor-bearing mice, with strong and sustained tumor uptake relative to healthy tissues, including kidney, liver and blood. First-in-human program is anticipated to start mid 2027.

Molecular Partners is also developing next-generation multispecific Radio-DARPins designed to engage multiple tumor targets simultaneously, with the aim of improving precision and therapeutic efficacy for highly heterogenous cancers, as showcased at the Gordon Research Conference Radionuclide Theranostics for the Management of Cancer in July 2026.

Immune Cell Engagers

As part of its strategic focus on radiopharmaceuticals, Molecular Partners will continue to explore the broad therapeutic potential of its DARPin platforms, including Switch-DARPins inside and outside of oncology, through strategic partnerships and platform-derived spin-out opportunities, representing potential upside beyond its focus on radiotherapeutics. Recent activities from these programs include:

• A trial-in-progress poster on MP0317, a FAP-localized CD40 agonist, presented by the Phase 2 investigators at the European Society for Medical Oncology (ESMO) Congress 2026.
• Presentation of new pre-clinical data on MP0632, a logic-gated T cell engager, at the Annual Meeting of the Society for Immunotherapy of Cancer (SITC) in November 2026.
• Presentation of results from the completed Phase 1/2a dose escalation of MP0533, a novel tetra-specific T cell engager designed for selective mutation-agnostic killing of AML cells, at the American Society of Hematology (ASH) Annual Meeting in December 2026.

Financial and Business Outlook

For the full year 2026, at constant exchange rates, the Company updates its forecast with total operating expenses of CHF 50-55 million expected, including approximately CHF 5 million of non-cash effective costs for share-based payments, IFRS pension accounting and depreciation.

The Company’s cash and cash equivalents are CHF 57.5 million (USD ~69 million) as of September 30, 2026 and based on current operating assumptions, is expected to be sufficient to fund its operating expenses and capital expenditure requirements into late 2027.

The financial impact from the restructuring is not estimable at this time, as Molecular Partners is still assessing the specifics of affected employees. The Company expects to be able to provide an estimate of the expected restructuring charge, including employee termination costs, as part of the full year 2026 results in early 2027.

Financial Calendar

March 5, 2027	Full Year 2026 results
April 14, 2027	Annual General Meeting

The latest timing of the above events can be viewed on the investor section of the website.

About Molecular Partners AG 
Molecular Partners AG (SIX, NASDAQ: MOLN) is a clinical-stage biotech company pioneering a novel class of medicines known as DARPin therapeutics for cancer patients underserved by existing treatment modalities. Molecular Partners focuses on the development of targeted radiotherapeutics, leveraging the unique properties of DARPin miniproteins as isotope-agnostic vector. The Company’s lead medicine MP0712, targeting DLL3 and armed with ²¹²Pb, advances in a US multicenter Phase 1/2a study for patients with small cell lung cancer and other neuroendocrine cancers. Molecular Partners has established partnerships with industry leaders and academic centers covering the full value chain of radiotherapeutics. Molecular Partners, founded in 2004, has offices in both Zurich, Switzerland and Concord, MA, USA. For more information, visit www.molecularpartners.com and find us on LinkedIn.

For further details, please contact:

Seth Lewis, EVP Corporate Finance
Concord, Massachusetts, U.S.
[email protected]
Tel: +1 781 420 2361

Laura Jeanbart, PhD, Head of Portfolio Management & Corporate Communications
Zurich-Schlieren, Switzerland
[email protected]
Tel: +41 44 575 19 35

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements. Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended, including without limitation: implied and express statements regarding the clinical development of Molecular Partners’ current or future product candidates; expectations regarding timing for reporting data from ongoing clinical trials or the initiation of future clinical trials; the potential therapeutic and clinical benefits of Molecular Partners’ product candidates and its RDT and Switch-DARPin platforms; the selection and development of future programs; Molecular Partners’ collaboration with Orano Med including the benefits and results that may be achieved through the collaboration; Molecular Partners’ plans to streamline its organization and related workforce reductions, and its anticipated scope, cost, timing and benefits; and Molecular Partners’ expected business and financial outlook, including anticipated expenses and cash utilization for 2026 and its expectation of its current cash runway. These statements may be identified by words such as “aim”, “anticipate”, “expect”, “guidance”, “intend”, “outlook”, “plan”, “potential”, “will” and similar expressions, and are based on Molecular Partners’ current beliefs and expectations. These statements involve risks and uncertainties that could cause actual results to differ materially from those reflected in such statements. Some of the key factors that could cause actual results to differ from Molecular Partners’ expectations include, but are not limited to, those set forth under the heading “Risk Factors” in Molecular Partners’ Annual Report on Form 20-F for the year ended December 31, 2025 and other filings Molecular Partners makes with the SEC from time to time. These documents are available on the Investors page of Molecular Partners’ website at www.molecularpartners.com. In addition, this press release contains information relating to interim data as of the relevant data cutoff date, results of which may differ from topline results that may be obtained in the future.

Any forward-looking statements speak only as of the date of this press release and are based on information available to Molecular Partners as of the date of this release, and Molecular Partners assumes no obligation to, and does not intend to, update any forward-looking statements, whether as a result of new information, future events or otherwise.

SAN JOSE, Calif., Oct. 28, 2026 (GLOBE NEWSWIRE) — California Water Service Group (Group or Company, NYSE: CWT), a leading publicly traded water utility serving California, Hawaii, New Mexico, Washington, and Texas, today reported solid financial results for the third quarter 2026.

Financial Highlights

• Recorded net income of $65.4 million and diluted EPS of $1.05 in Q3 2026, compared to net income of $61.2 million and diluted EPS of $1.03 reported in Q3 2025.
• Invested $148.3 million in water system infrastructure.
• Received approval from the Washington Utilities and Transportation Commission (WUTC) on the Washington Water Service (Washington Water) General Rate Case (GRC) that will add $4.1 million to annual revenues.
• Received change-of-control approval from the public utilities commissions in Nevada and Oregon for water and wastewater system acquisitions.
• Declared the 327^th consecutive quarterly dividend in the amount of $0.335 per common share.

According to Chairman and Chief Executive Officer Martin A. Kropelnicki, the Company’s solid financial performance reflects the continued successful execution of its business strategy, including improving water system sustainability and keeping rates affordable.

“We are making investments needed to provide safe, reliable water service; working with our regulators to recover costs while keeping rates affordable; focusing on maintaining a strong balance sheet; preparing for emergencies that can affect our customers, including extreme weather events and wildfires; and making a difference in our communities. We delivered strong results by maintaining a laser focus on executing our strategy and putting our customers first,” he said.

Q3 2026 Financial Results

• Q3 2026 revenue increased $21.0 million or 6.7% to $332.2 million, compared to revenue of $311.2 million in Q3 2025.
  • Rate changes and new customers added $22.1 million in revenue, while changes in the Drought Response Memorandum Account (DREMA) contributed an additional $3.9 million.
  • Decline in customer water usage offset revenue increases by $4.4 million.
• Q3 2026 operating expenses increased $8.9 million or 3.7% to $249.5 million compared to Q3 2025 operating expenses of $240.6 million.
  • Water production costs were consistent between the quarters with higher wholesale water costs, partially offset by lower customer usage.
  • Other operations expenses increased $4.1 million compared to Q3 2025 primarily due to a $2.8 million increase in water conservation program expenditures.
  • Income tax expense on operating income increased $7.1 million compared to Q3 2025 due to higher pre-tax income and a scheduled reduction in the Tax Cut and Jobs Act (TCJA) refund.

• Net other income decreased $6.0 million during the quarter due to a $3.9 million reduction in non-qualified benefit plan investment gains and an increase of $1.4 million in business acquisition expenses.

YTD 2026 Financial Results

• YTD 2026 net income was $125.9 million or $2.07 per diluted share, an increase of 7.9% or $9.2 million and $0.11 per diluted share compared to YTD 2025 net income of $116.7 million or $1.96 per diluted share.
• YTD 2026 revenue increased $75.1 million or 9.6% to $855.3 million, compared to YTD revenue of $780.2 million in 2025.
  • Rate changes and new customers added $51.9 million in revenue.
  • DREMA added $3.9 million in revenue.
  • The Interim Rates Memorandum Account related to the recently completed 2024 California GRC proceeding added $15.7 million.
  • Recognition of remaining deferred revenue under California Water Service’s (Cal Water) previous Water Revenue Adjustment Mechanism (WRAM) added $9.9 million.
  • Decline in customer water usage offset revenue increases by $3.9 million.

• YTD 2026 operating expenses increased $48.2 million or 7.6% to $683.6 million compared to YTD operating expenses of $635.4 million in 2025.
  • Water production costs increased $14.1 million, primarily due to an increase in wholesale water rates, partially offset by lower customer usage.
  • Other operations expenses increased $19.9 million, primarily due to the recognition of $8.1 million of deferred WRAM costs and an increase of $5.5 million in water conservation program expenses.
  • Income tax expense on operating income increased $13.1 million due to higher pre-tax income and a scheduled reduction in the TCJA refund.

• Net other income decreased $9.5 million due to a $4.7 million decrease in the net periodic benefit credit, an increase of $4.1 million in business acquisition expenses, and a $3.0 million reduction in non-qualified benefit plan investment gains.

Investing in Infrastructure to Provide Safe, High-Quality Water Service

The Company continued to invest responsibly in infrastructure projects that enhance quality and reliability for customers, including water main replacements, groundwater wells, and water quality treatment projects. Group capital investments for the nine months ended September 30, 2026, were $424.8 million, up 16.5% compared to September 30, 2025, YTD investments of $364.7 million.

Working with Regulators to Recover Costs While Keeping Rates Affordable

In the third quarter, the California Public Utilities Commission (CPUC) granted Cal Water’s request to recover certain PFAS treatment costs using the advice letter process. In 2026, Cal Water has invested $23 million YTD in PFAS treatment projects and has 18 plants under construction. Company-wide, Group expects to invest $228.0 million in PFAS treatment and well replacement projects; to date, it has recovered $59.4 million in net proceeds from PFAS manufacturers to help reduce the rate impact on customers.

Importantly, Cal Water assesses customer affordability during every GRC. In 2025, median water bills were 0.88% of median household income, which is well within the affordability guideline of 2% established by the United States Environmental Protection Agency. In addition, Cal Water provides a low-income assistance program, an additional discount for customers in higher-cost service areas, customer conservation programs and rebates, and interest-free payment plans. It also actively pursues state and federal grants to help mitigate rate increases, especially in low-income communities.

In Washington, the WUTC adopted the joint settlement agreement of Washington Water, WUTC staff, and the Consumer Advocate team from the Public Counsel Unit of the Washington Attorney General’s Office, which authorizes rate increases that will increase annual revenues by $4.1 million, effective October 1, 2026.

After the close of the third quarter, the State of Hawaii Public Utilities Commission (HPUC) adopted a settlement agreement between Hawaii Water and the HPUC Consumer Advocate that authorizes rate increases in the Kapalua water and wastewater systems that will increase annual revenues by $1.94 million, effective October 21, 2026. This rate increase will be the first one implemented since these systems were acquired in 2021 and reflects the capital improvements Hawaii Water continues to make to improve water system reliability.

Progressing on Nevada and Oregon Acquisitions

On August 11, 2026, the Public Utilities Commission of Nevada approved California Water Service Group’s acquisition of Nexus Water Group’s (Nexus) Nevada systems and operations, and on October 27, 2026, the Oregon Public Utilities Commission (OPUC) followed suit. The Company expects to close the Nevada and Oregon acquisitions in the fourth quarter of 2026.

Maintaining a Strong Balance Sheet

As of September 30, 2026, Group’s cash and cash equivalents totaled $45.1 million and restricted cash was $45.8 million. Group and Cal Water had additional short-term borrowing capacity of $200.0 million and $225.0 million, respectively, subject to meeting the borrowing conditions on its Group and Cal Water lines of credit.

During the third quarter, the Company sold 1.0 million shares of common stock through its at-the-market equity program and raised proceeds of $49.8 million. In addition, the Company entered into forward sales agreements with investors to sell an additional 1.6 million shares. The Company has up to 12 months from date it entered into the forward contracts to settle the agreements. As of September 30, 2026, we could have physically settled with the investors for $77.8 million.

Subsequent to the end of the third quarter, the Company and Cal Water also entered into Note and First Mortgage Bond purchase agreements, respectively, which provide for the issuance of $125.0 million in unsecured borrowings (the Notes) and $150.0 million in secured borrowings (the Bonds). The Notes will accrue interest at 6.08% and 6.41% with maturities of December 15, 2031 and December 15, 2036. The Bonds will accrue interest at 6.49% and 6.54% with maturities of December 15, 2046 and December 15, 2056. The Notes and Bonds are expected to be issued on or before December 31, 2026.

With the long-term debt agreements and equity forward arrangements in place, the Company believes it has the resources to finance its on-going initiatives into the first half of 2027, including the acquisition of Nevada and Oregon systems which we expect to close before December 31, 2026.

The most recent Cost of Capital decision for Cal Water, which remains effective through December 2027, establishes a 10.27% authorized return on equity, a 7.46% authorized return on rate base, and a debt/equity structure of 46.6%/53.4%.

Increasing Dividends for 59 Consecutive Years

The Group Board of Directors has declared the 327^th consecutive quarterly dividend in the amount of $0.335 per common share. The Company’s 59^th consecutive annual dividend increase announced earlier this year is expected to yield an annual dividend of $1.34 per common share, an increase of 8.1% over 2025.

Preparing for Emergencies

Group continued to prioritize emergency preparedness in the third quarter, providing emergency preparedness and response training to employees and first responders; equipping and preparing its Operations Rapid Response Teams; positioning and fueling back-up power sources; testing satellite phones and two-way radios; maintaining vegetation to help minimize damage to key facilities in the event of storms or fires; and preparing to conduct additional water quality monitoring, if needed. These ongoing efforts are expected to better prepare the Company to deal with natural disasters, including wildfires and forecasted El Niño conditions.

Making an Impact in the Community

During the third quarter, Group celebrated its centennial with customers, awarded scholarships to students, and opened its firefighter grant program. The Company was named one of America’s Greatest Workplaces, America’s Greatest Companies, and World’s Greenest Companies by Newsweek. And Cal Water partnered with Selma Unified School District and Self-Help Enterprises to do the work necessary to connect Indianola Elementary School to its system in order to provide high-quality water to 400 students and faculty.

For additional details on the Company’s third quarter results, please see the Form 10-Q which will be available at:

www.calwatergroup.com/investors/financials-filings-reports/sec-filings

, or listen to the earnings teleconference or teleconference replay.

Quarterly Earnings Teleconference

The quarterly teleconference will take place on October 29, 2026, at 8 a.m. PT/11 a.m. ET. To join, dial 1-800-715-9871 or 1-646-307-1963 and key in ID# 2080463, or access the live audio webcast at edge.media-server.com/mmc/p/5ckhdfck.

A replay of the call will be available from 2 p.m. ET on October 29, 2026, through November 28, 2026, at 1-800-770-2030 or 1-609-800-9909 by keying in ID# 2080463, or by accessing the webcast above. The call will be hosted by Chairman and Chief Executive Officer Martin A. Kropelnicki and Senior Vice President, Chief Financial Officer and Treasurer James P. Lynch. Prior to the call, the Company will publish a slide presentation on its website.

About California Water Service Group

Group is the parent company of regulated utilities California Water Service Company, Hawaii Water Service Company, Inc., New Mexico Water Service Company, and Washington Water Service Company, as well as TWSC, Inc. (Texas Water Service), a utility holding company. Together, these companies provide regulated and non-regulated water and wastewater service to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas. Group’s common stock trades on the New York Stock Exchange under the symbol “CWT.” Additional information is available online at www.calwatergroup.com.

This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections and our management’s beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing the Company’s expected financial performance, expectations regarding the Company’s plans and proposals pursuant to the 2024 CA GRC, the anticipated closing of the Company’s acquisition of Nexus Water Group’s Nevada and Oregon subsidiaries and expected integration of the acquired systems and benefits resulting from the acquisition, the expected timing and the amount of proceeds from the Company’s forward sales agreements, the ability to complete the issuance of the Notes and Bonds on the expected timing, the sufficiency of the Company’s resources to finance its initiatives and expectations regarding dividends. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to: the outcome and timeliness of regulatory commissions’ actions concerning rate relief and other matters, including with respect to general rate cases and other regulatory proceedings; the impact of opposition to rate increases; our ability to recover costs; federal governmental and state regulatory commissions’ decisions, including decisions on proper disposition of property; changes in state regulatory commissions’ policies and procedures; changes in California State Water Resources Control Board water quality standards; changes in environmental compliance and water quality requirements, such as the United States Environmental Protection Agency’s (EPA) finalization of a National Primary Drinking Water Regulation (NPDWR) establishing legally enforceable maximum contaminant levels (MCL) for PFAS in drinking water in 2024 as well as legal challenges to such MCLs; EPA’s proposed new PFAS rulemaking, including impacts to the current PFAS NPDWR; the impact of weather, climate change, natural disasters, including wildfires and landslides and actual or threatened public health emergencies, including disease outbreaks, on our operations, water quality, water availability, water sales and operating results and the adequacy of our emergency preparedness; electric power interruptions, especially as a result of public safety power shutoff programs; availability of water supplies; our ability to invest or apply the proceeds from the issuance of common stock in an accretive manner; our ability to complete [the issuance of the Notes and Bonds and] the settlement of the forward sales agreements on the expected timing or at all]; consequences of eminent domain actions relating to our water systems; increased risk of inverse condemnation losses as a result of the impact of weather, climate change and natural disasters, including wildfires and landslides; shifts in population, including housing and customer growth; issues with the implementation, maintenance or security of our information technology and operational technology systems; physical and cyber security risks and threats and the adequacy of our efforts to mitigate such risks and threats; the ability of our enterprise risk management processes to identify or address risks adequately; labor relations matters as we negotiate with the unions; changes in customer water use patterns and the effects of conservation, including as a result of drought conditions; our ability to complete, in a timely manner or at all, successfully integrate and achieve anticipated benefits from announced acquisitions, including the Oregon, Nevada and BVRT acquisitions; restrictive covenants in or changes to the credit ratings on our current or future debt that could increase our financing costs or affect our ability to borrow, make payments on debt or pay dividends; risks associated with expanding our business and operations, including into other geographic areas; the impact of stagnating or worsening business and economic conditions, including inflationary pressures, general economic slowdown or a recession, changes in tariff policy, the interest rate environment, changes in monetary policy, adverse capital markets activity or macroeconomic conditions as a result of geopolitical conflicts, including ongoing conflicts in Ukraine and the Middle East, and the prospect of shutdowns of the U.S. federal government; the impact of market conditions and volatility on unrealized gains or losses on our non-qualified benefit plan investments and our operating results; the impact of weather and timing of meter reads on our accrued and unbilled revenue; the impact of evolving legal and regulatory requirements, including sustainability requirements; the impact of the evolving U.S. political environment and changes effected, proposed, or threatened by the U.S. federal government that has led to, in some cases, legal challenges and uncertainty around the funding, functioning and policy priorities of U.S. federal regulatory agencies and the status of current and future regulations; and other risks and unforeseen events described in our Securities and Exchange Commission (“SEC”) filings. In light of these risks, uncertainties and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. When considering forward-looking statements, you should keep in mind the cautionary statements included in this paragraph, as well as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed from time-to-time with the SEC. We are not under any obligation and we expressly disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. A credit rating is not a recommendation to buy, sell or hold any securities, may be changed at any time by the applicable ratings agency and should be evaluated independently of any other information.

Contacts:

James P. Lynch, (408) 367-8200 (analysts)
Shannon Dean, (408) 367-8243 (media)

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands, except per share data)	September 30, 2026				December 31, 2025
ASSETS
Utility plant:
Utility plant	$	6,297,996			$	5,909,242
Less accumulated depreciation and amortization		(1,367,753	)			(1,329,652	)
Net utility plant		4,930,243				4,579,590
Current assets:
Cash and cash equivalents		45,117				51,820
Restricted cash		45,834				45,553
Receivables:
Customers, net		80,740				56,322
Short-term regulatory assets		86,507				72,511
Other, net		37,202				49,004
Accrued and unbilled revenue, net		64,122				39,674
Materials and supplies		18,360				19,784
Taxes, prepaid expenses, and other assets		29,697				19,760
Total current assets		407,579				354,428
Other assets:
Regulatory assets		320,115				339,865
Goodwill		37,063				37,063
Other assets		379,373				360,219
Total other assets		736,551				737,147
TOTAL ASSETS	$	6,074,373			$	5,671,165
CAPITALIZATION AND LIABILITIES
Capitalization:
Common stock, $0.01 par value; 136,000 shares authorized, 62,877 and 59,638 outstanding on September 30, 2026 and December 31, 2025, respectively	$	629			$	596
Additional paid-in capital		1,121,845				973,454
Retained earnings		794,184				729,276
Accumulated other comprehensive loss		(12,768	)			(13,922	)
Noncontrolling interests		2,639				2,571
Total equity		1,906,529				1,691,975
Long-term debt, net		1,472,021				1,471,968
Total capitalization		3,378,550				3,163,943
Current liabilities:
Current maturities of long-term debt, net		316				2,270
Short-term borrowings		175,000				130,000
Accounts payable		207,633				175,729
Short-term regulatory liabilities		89,889				25,458
Accrued other taxes		12,635				6,048
Accrued interest		23,309				12,976
Other accrued liabilities		66,068				65,683
Total current liabilities		574,850				418,164
Deferred income taxes		473,399				450,946
Regulatory liabilities		920,323				929,814
Pension		95,677				94,226
Advances for construction		213,334				210,638
Contributions in aid of construction		307,951				297,016
Other long-term liabilities		110,289				106,418
Commitments and contingencies
TOTAL CAPITALIZATION AND LIABILITIES	$	6,074,373			$	5,671,165

CALIFORNIA WATER SERVICE GROUP

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In thousands, except per share data)

	Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Operating revenue	$	332,168			$	311,235			$	855,337			$	780,162
Operating expenses:
Operations:
Water production costs		102,103				102,703				265,275				251,197
Administrative and general		35,010				36,237				104,917				103,728
Other operations		37,512				33,455				113,889				93,986
Maintenance		9,428				9,812				26,944				26,523
Depreciation and amortization		34,708				36,118				104,208				108,103
Income tax expense		17,726				10,639				31,672				18,589
Property and other taxes		13,003				11,656				36,691				33,267
Total operating expenses		249,490				240,620				683,596				635,393
Net operating income		82,678				70,615				171,741				144,769
Other income and expenses:
Non-regulated revenue		5,917				5,349				17,379				15,341
Non-regulated expenses		(9,121	)			(2,456	)			(18,157	)			(8,790	)
Other components of net periodic benefit credit		3,010				4,548				9,270				13,937
Allowance for equity funds used during construction		2,478				2,145				6,642				5,840
Income tax expense on other income and expenses		(612	)			(1,960	)			(3,719	)			(5,415	)
Net other income		1,672				7,626				11,415				20,913
Interest expense:
Interest expense		20,170				18,113				60,598				52,086
Allowance for borrowed funds used during construction		(1,216	)			(988	)			(3,328	)			(2,772	)
Net interest expense		18,954				17,125				57,270				49,314
Net income		65,396				61,116				125,886				116,368
Net loss attributable to noncontrolling interests		(12	)			(114	)			(24	)			(361	)
Net income attributable to California Water Service Group	$	65,408			$	61,230			$	125,910			$	116,729
Earnings per share of common stock:
Basic	$	1.05			$	1.03			$	2.07			$	1.96
Diluted	$	1.05			$	1.03			$	2.07			$	1.96
Weighted average shares outstanding:
Basic		62,393				59,585				60,826				59,557
Diluted		62,502				59,653				60,913				59,615
Dividends per share of common stock	$	0.34			$	0.30			$	1.01			$	0.94

PISCATAWAY, N.J., Oct. 28, 2026 (GLOBE NEWSWIRE) — BHAV Acquisition Corp II (the “Company” or “BHAV”) today announced the pricing of its initial public offering of 10,000,000 units at an offering price of $10.00 per unit, with each unit consisting of one Class A ordinary share and one right. Each right entitles the holder to receive one-fourth (1/4) of one Class A ordinary share upon consummation of the Company’s initial business combination. The units are expected to trade on the Nasdaq Global Market (“Nasdaq”) under the ticker symbol “BHAIU” beginning on October 29, 2026. Once the securities comprising the units begin separate trading, the Class A ordinary shares and rights are expected to trade on Nasdaq under the symbols “BHAI” and “BHAIR,” respectively.

BHAV is led by Giri Devanur, Chief Executive Officer and Director, and Chaitanya Kumar Setti, Chief Financial Officer and Director.

Maxim Group LLC is acting as the sole book-running manager for the offering.

The Company has granted the underwriter a 45-day option to purchase up to 1,500,000 additional units at the initial public offering price less the underwriting discount to cover over-allotments, if any. The offering is expected to close on October 30, 2026, subject to customary closing conditions.

A registration statement on Form S-1 (File No. 333-299203) (as amended, the “Registration Statement”) relating to the securities to be sold in the initial public offering was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on October 28, 2026. The offering is being made only by means of a prospectus. When available, copies of the prospectus relating to this offering may be obtained from Maxim Group LLC, 300 Park Avenue, 16^th Floor, New York, NY 10022, Attention: Syndicate Department, by telephone at (212) 895-3745 or by email at [email protected], or by accessing the SEC’s website, www.sec.gov.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BHAV Acquisition Corp II

BHAV Acquisition Corp II is a blank check company, also commonly referred to as a special purpose acquisition company, or SPAC, formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses.

Forward-Looking Statements

This press release contains statements that constitute “forward-looking statements,” including with respect to the Company’s initial public offering and search for an initial business combination. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Registration Statement and related preliminary prospectus filed in connection with the initial public offering with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Contact Information

BHAV Acquisition Corp II

Giri Devanur
Chief Executive Officer
E-mail: [email protected]

NEW YORK, Oct. 28, 2026 (GLOBE NEWSWIRE) — Mesoblast Limited (Nasdaq:MESO; ASX:MSB), global leader in allogeneic cellular medicines for inflammatory diseases, today provided its activity report for the first fiscal quarter ended September 30, 2026.

Financial highlights included 44% increase in net revenues and 86% improvement in net operational cash spend compared with the prior year period. Operational highlights included completion of all patients treated in the MSB-DR004 pivotal randomized controlled Phase 3 trial of rexlemestrocel-L for inflammatory chronic low back pain (CLBP) and a positive meeting with U.S. Food and Drug Administration (FDA) regarding the planned Biologics License Application (BLA) filing for rexlemestrocel-L in prevention of life-threatening gastrointestinal (GI) bleeding in end-stage heart failure patients with a left ventricular assist device (LVAD).

“Our first-quarter results show continued momentum for Ryoncil^® (remestemcel-L-rknd) sales. Importantly, we have shown substantial improvement in our net operating cash spend while continuing to advance our strategic objectives for rexlemestrocel-L in chronic pain and cardiovascular diseases,” said Mesoblast Chief Executive Dr. Silviu Itescu.

Mesoblast had US$99 million of cash at September 30, 2026, US$2.1 million operating cash spend for the first fiscal quarter, an 86% improvement compared with US$14.9 million for the prior year period. RYONCIL net revenue for the first quarter was US$28 million, an increase of 44% compared with the prior year period.¹ September experienced the highest number of new patient starts per month, following the expected seasonality from summer recess-related treatment scheduling that occurs each July and August.

The registration trial for expansion of RYONCIL use for adults with SR-aGvHD has commenced and is currently enrolling patients, with up to 40 sites across the U.S. expected to be activated this year representing approximately 60% of the ~8,500 annual U.S. allogeneic adult bone marrow transplant population. In line with requirement for increased product inventory to meet greater demand in adult indications, Mesoblast implemented and received approval from the FDA for an additional potency assay, T-cell Proliferation Inhibition BioAssay (TIBA), to provide even greater assurance of product potency and consistency as RYONCIL manufacturing scale up proceeds.

After strong demand from trial investigators to enroll their patients in the expanded 350-patient Phase 3 pivotal trial of rexlemestrocel-L for chronic inflammatory low back pain due to degenerative disc disease, Mesoblast completed treatment of all enrolled patients with the trial’s primary endpoint of 12 month durable pain reduction to read out next year.

Mesoblast met with FDA to align on the BLA filing for rexlemestrocel-L under its Regenerative Medicine Advanced Therapy (RMAT) and Orphan Drug designations for treatment of patients with end-stage heart failure with reduced ejection fraction (HFrEF) being kept alive by a left ventricular assist device. FDA confirmed the BLA filing may proceed for patients with life-threatening major gastrointestinal bleeding, a complication of the severe inflammation and vascular abnormalities in these patients. The vascular inflammation most evident in the gastrointestinal tract in patients with advanced HFrEF is widespread, including in the lungs where it results in pulmonary hypertension, a condition with progressive right heart failure and high mortality. Formal minutes of the meeting are expected shortly.

Corporate

Fees to Non-Executive Directors were US$187,295, salary payments to full-time Executive Directors were US$416,298, and payments to related parties for purchase of services were US$25,000 as detailed in Item 6 of the Appendix 4C cash flow report for the quarter.²

A copy of the Appendix 4C – Quarterly Cash Flow Report for the first quarter FY2027 is available on the investor page of the company’s website www.mesoblast.com.

About Mesoblast

Mesoblast (the Company) is a world leader in developing allogeneic (off-the-shelf) cellular medicines for the treatment of severe and life-threatening inflammatory conditions. The therapies from the Company’s proprietary mesenchymal lineage cell therapy technology platform respond to severe inflammation by releasing anti-inflammatory factors that counter and modulate multiple effector arms of the immune system, resulting in significant reduction of the damaging inflammatory process.

Mesoblast’s Ryoncil^® (remestemcel-L-rknd) for the treatment of steroid-refractory acute graft versus host disease (SR-aGvHD) in pediatric patients 2 months and older is the first FDA-approved mesenchymal stromal cell (MSC) therapy. Please see the full Prescribing Information at www.ryoncil.com.

Mesoblast is committed to developing additional cell therapies for distinct indications based on its remestemcel-L and rexlemestrocel-L allogeneic stromal cell technology platforms. Ryoncil^® is being developed for additional inflammatory diseases including SR-aGvHD in adults and biologic-resistant inflammatory bowel disease. Rexlemestrocel-L is being developed for heart failure and chronic low back pain. The Company has established commercial partnerships in Japan, Europe and China.

About Mesoblast intellectual property: Mesoblast has a strong and extensive global intellectual property portfolio, with over 1,000 granted patents or patent applications covering mesenchymal stromal cell compositions of matter, methods of manufacturing and indications. These granted patents and patent applications provide commercial protection extending through to at least 2044 in all major markets.

About Mesoblast manufacturing: The Company’s proprietary manufacturing processes yield industrial-scale, cryopreserved, off-the-shelf, cellular medicines. These cell therapies, with defined pharmaceutical release criteria, are planned to be readily available to patients worldwide.

Mesoblast has locations in Australia, the United States and Singapore and is listed on the Australian Securities Exchange (MSB) and on the Nasdaq (MESO). For more information, please see www.mesoblast.com, LinkedIn: Mesoblast Limited and X: @Mesoblast

References / Footnotes

1. The revenues included in this press release are based on management’s initial analysis of operations for the first quarter ended September 30, 2026, and are subject to completion of Mesoblast’s financial closing procedures and audit.
2. As required by ASX listing rule 4.7 and reported in Item 6 of the Appendix 4C, reported are the aggregated total payments to related parties being Executive Directors and Non-Executive Directors.

Forward-Looking Statements

This press release includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. We make such forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Forward-looking statements should not be read as a guarantee of future performance or results, and actual results may differ from the results anticipated in these forward-looking statements, and the differences may be material and adverse. Forward-looking statements include, but are not limited to, statements about: the initiation, timing, progress and results of Mesoblast’s preclinical and clinical studies, and Mesoblast’s research and development programs; Mesoblast’s ability to advance product candidates into, enroll and successfully complete, clinical studies, including multi-national clinical trials; Mesoblast’s ability to advance its manufacturing capabilities; the timing or likelihood of regulatory filings and approvals, manufacturing activities and product marketing activities, if any; the commercialization of Mesoblast’s RYONCIL for pediatric SR-aGvHD and any other product candidates, if approved; regulatory or public perceptions and market acceptance surrounding the use of stem-cell based therapies; the potential for Mesoblast’s product candidates, if any are approved, to be withdrawn from the market due to patient adverse events or deaths; the potential benefits of strategic collaboration agreements and Mesoblast’s ability to enter into and maintain established strategic collaborations; Mesoblast’s ability to establish and maintain intellectual property on its product candidates and Mesoblast’s ability to successfully defend these in cases of alleged infringement; the scope of protection Mesoblast is able to establish and maintain for intellectual property rights covering its product candidates and technology; estimates of Mesoblast’s expenses, future revenues, capital requirements and its needs for additional financing; Mesoblast’s financial performance; developments relating to Mesoblast’s competitors and industry; and the pricing and reimbursement of Mesoblast’s product candidates, if approved. You should read this press release together with our risk factors, in our most recently filed reports with the SEC or on our website. Uncertainties and risks that may cause Mesoblast’s actual results, performance or achievements to be materially different from those which may be expressed or implied by such statements, and accordingly, you should not place undue reliance on these forward-looking statements. We do not undertake any obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

Release authorized by the Chief Executive.

For more information, please contact:

Corporate Communications / Investors
Paul Hughes
T: +61 3 9639 6036
Media – Global	Media – Australia
Rubenstein	BlueDot Media
Caroline Nelson	Steve Dabkowski
T: +1 703 489 3037	T: +61 419 880 486
E: [email protected]	E: [email protected]

— Orphan Drug Designation granted for the treatment of primary immune thrombocytopenia — 

— Underscores the potential of sovleplenib to address significant unmet medical needs in patients with this rare and serious autoimmune condition —

— Eligible for development incentives including 7 years of US market exclusivity upon regulatory approval — 

HONG KONG, SHANGHAI and FLORHAM PARK, N.J., Oct. 28, 2026 (GLOBE NEWSWIRE) — HUTCHMED (China) Limited (“HUTCHMED”) (Nasdaq/AIM:​HCM; HKEX:​13) today announces that the US Food and Drug Administration (“FDA”) has granted Orphan Drug Designation to sovleplenib for the treatment of primary immune thrombocytopenia (“ITP”), an autoimmune disorder that can lead to increased risk of bleeding. Sovleplenib is a novel, selective, oral spleen tyrosine kinase (“Syk”) inhibitor.

The FDA’s Orphan Drug Designation program provides orphan status to drugs and biologics intended for the safe and effective treatment, diagnosis, or prevention of rare diseases or conditions that affect fewer than 200,000 people in the United States. If approved by the FDA for the designated indication, drugs with Orphan Drug Designation are eligible for 7 years of US market exclusivity upon approval, tax credits for qualified clinical trials, user fee waivers under the Prescription Drug User Fee Act, and specialized regulatory guidance from the FDA during clinical development.

In China, New Drug Applications (“NDAs”) for sovleplenib in primary ITP and warm antibody autoimmune hemolytic anemia are currently under regulatory review by the National Medical Products Administration (NMPA), supported by positive data from the pivotal ESLIM-01 and ESLIM-02 trials in China, respectively.

About ITP

ITP is an autoimmune disorder characterized by immunologic destruction of platelets and decreased platelet production. Patients with ITP are at increased risk of excessive bleeding and bruising.¹ ITP is also associated with fatigue (reported in up to 39% of adults with ITP) and impaired quality of life.^2,3,4,5,6 The incidence of primary ITP in adults is 3.3/100,000 adults per year with a prevalence of 9.5 per 100,000 adults.⁷ Based on this prevalence rate, approximately 110,000 patients are estimated to be living with primary ITP in China, in addition to 56,000 patients in the US, Germany, France, Italy, Spain, UK, and Japan. It has been estimated that as many as 145,000 patients are living with chronic ITP in major pharmaceutical markets excluding China.⁸

Adult ITP is a heterogeneous disease that can persist for years, even with best available care, and treatments are infrequently curative. Despite availability of several treatments with differing mechanisms of action, chronicity of disease continues to be a problem. Many patients develop resistance to treatment and thereby are prone to relapse.⁹ Thus, there remains a significant population of patients who have limited sensitivity to currently available agents and are in need of new treatments.

As platelet destruction in ITP is mediated by Syk-dependent phagocytosis of FcγR-bound platelets, Syk inhibition represents a promising approach to management of ITP.¹⁰

About Sovleplenib

Sovleplenib is a novel, selective inhibitor of Syk for once daily oral administration. Syk is a major component in B-cell receptor and FcR signaling and is an established target for the treatment of multiple subtypes of B-cell lymphomas and autoimmune disorders.

HUTCHMED currently retains all rights to sovleplenib worldwide. 

About HUTCHMED

HUTCHMED (Nasdaq/AIM: HCM; HKEX: 13) is an innovative, commercial-stage, biopharmaceutical company. It is committed to the discovery and global development and commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. Since inception it has focused on bringing drug candidates from in-house discovery to patients around the world, with its first four medicines marketed in China, the first of which is also approved around the world including in the US, Europe and Japan. For more information, please visit: www.hutch-med.com or follow us on LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect HUTCHMED’s current expectations regarding future events, including its expectations regarding the therapeutic potential of sovleplenib, the further clinical development for sovleplenib, its expectations as to whether any studies on sovleplenib would meet their primary or secondary endpoints, and its expectations as to the timing of the completion and the release of results from such studies. Forward-looking statements involve risks and uncertainties. Such risks and uncertainties include, among other things, assumptions regarding the timing and outcome of clinical studies and the sufficiency of clinical data to support NDA approval of sovleplenib for the treatment of patients with ITP or other indications in China or other jurisdictions, unexpected adverse events or safety issues; the ability of sovleplenib to meet the primary or secondary endpoint of a study, to obtain regulatory approval in different jurisdictions and to gain commercial acceptance after obtaining regulatory approval; the potential market of sovleplenib for a targeted indication; the sufficiency of funding; HUTCHMED’s ability to successfully develop and commercialize sovleplenib. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. For further discussion of these and other risks, see HUTCHMED’s filings with the US Securities and Exchange Commission, The Stock Exchange of Hong Kong Limited and on AIM. HUTCHMED undertakes no obligation to update or revise the information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

Medical Information

This press release contains information about products that may not be available in all countries, or may be available under different trademarks, for different indications, in different dosages, or in different strengths. Nothing contained herein should be considered a solicitation, promotion or advertisement for any prescription drugs including the ones under development.

CONTACTS

Investor Enquiries	+852 2121 8200 / [email protected]
Media Enquiries
FTI Consulting –	+44 20 3727 1030 / [email protected]
Ben Atwell / Tim Stamper	+44 7771 913 902 (Mobile) / +44 7779 436 698 (Mobile)
Brunswick – Zhou Yi	+852 9783 6894 (Mobile) / [email protected]
Panmure Liberum	Nominated Advisor and Joint Broker
Atholl Tweedie / Emma Earl / Rupert Dearden	+44 20 7886 2500
Cavendish	Joint Broker
Geoff Nash / Nigel Birks	+44 20 7220 0500
Deutsche Numis	Joint Broker
Duncan Monteith / Ramin Naji	+44 20 7545 8000

——————————————————

REFERENCES

1	Zufferey A, et al. Pathogenesis and Therapeutic Mechanisms in Immune Thrombocytopenia (ITP). J. Clin. Med. 2017, 6(2), 16.
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