onsemi Reports Second Quarter 2025 Results
SCOTTSDALE, Ariz., Aug. 04, 2025 (GLOBE NEWSWIRE) -- onsemi (the "Company") (NASDAQ:ON) today announced its second quarter 2025 results with the following highlights:
Revenue of $1,468.7 million
GAAP gross margin and non-GAAP gross margin of 37.6%
GAAP operating margin and non-GAAP operating margin of 13.2% and 17.3%, respectively
GAAP diluted earnings per share and non-GAAP diluted earnings per share of $0.41 and $0.53, respectively
Cash from operations of $184.3 million and free cash flow of $106.1 million
"Our ongoing transformation is resulting in a more predictable business model, reflecting the strength of our strategy and our commitment to long-term value creation. We are beginning to see signs of stabilization across our end markets, and we remain well-positioned to benefit from a market recovery," said Hassane El-Khoury, president and CEO, onsemi. "As we execute near-term priorities, we are positioning the company for long-term growth through investments in next-generation technologies to accelerate our market leadership."
Selected financial results for the quarter are shown below with comparable periods (unaudited):
GAAP
Non-GAAP
(Revenue and Net Income (Loss) in millions)
Q2 2025
Q1 2025
Q2 2024
Q2 2025
Q1 2025
Q2 2024
Revenue
$1,468.7
$1,445.7
$1,735.2
$1,468.7
$1,445.7
$1,735.2
Gross Margin
37.6%
20.3%
45.2%
37.6%
40.0%
45.3%
Operating Margin
13.2%
(39.7)%
22.4%
17.3%
18.3%
27.5%
Net Income (Loss) attributable to ON Semiconductor Corporation
$170.3
($486.1)
$338.2
$221.3
$231.6
$412.1
Diluted Earnings (Loss) Per Share
$0.41
($1.15)
$0.78
$0.53
$0.55
$0.96
Revenue Summary(in millions) (Unaudited)
Quarters Ended
Business Segment
Q2 2025
Q1 2025
Q2 2024
Sequential Change
Year-over-Year Change
PSG
$
698.2
$
645.1
$
835.2
8%
(16)%
AMG
555.9
566.4
647.8
(2)%
(14)%
ISG
214.6
234.2
252.2
(8)%
(15)%
Total
$
1,468.7
$
1,445.7
$
1,735.2
2%
(15)%
THIRD QUARTER 2025 OUTLOOK
The following table outlines onsemi's projected third quarter of 2025 GAAP and non-GAAP outlook.
Total onsemiGAAP
SpecialItems **
Total onsemiNon-GAAP***
Revenue
$1,465 to $1,565 million
-
$1,465 to $1,565 million
Gross Margin
36.4% to 38.4%
0.1%
36.5% to 38.5%
Operating Expenses
$294 to $309 million
$14 million
$280 to $295 million
Other Income and Expense (including interest), net
($8 million)
-
($8 million)
Diluted Earnings Per Share
$0.51 to $0.61
$0.03
$0.54 to $0.64
Diluted Shares Outstanding *
410 million
-
410 million
*
Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, and $103.87 for the 0.50% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, and the 0.50% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, and $103.87 and $156.78 for the 0.50% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, and the 0.50% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, and $156.78 for the 0.50% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher.
**
Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; restructuring-related cost of revenue charges; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook.
***
We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names.
TELECONFERENCE
onsemi will host a conference call for the financial community at 9 a.m. Eastern Time (ET) on August 4, 2025 to discuss this announcement and onsemi's second quarter 2025 results. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com. The webcast replay will be available at this site approximately one hour following the live broadcast and will continue to be available for approximately 30 days following the conference call. Investors and interested parties can also access the conference call by pre-registering here.
About onsemi
onsemi (NASDAQ:ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world's most complex challenges and leads the way to creating a safer, cleaner, and smarter world. onsemi is included in the Nasdaq-100 Index® and S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.
Krystal Heaton
Parag Agarwal
Director, Head of Public Relations
Vice President - Investor Relations & Corporate Development
onsemi
onsemi
(480) 242-6943
(602) 244-3437
This document includes "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the third quarter of 2025. Forward-looking statements are often characterized by the use of words such as "believes," "estimates," "expects," "projects," "may," "will," "intends," "plans," "anticipates," "should" or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A "Risk Factors" in the 2024 Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC") on February 10, 2025 (the "2024 Form 10-K") and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2024 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
ON SEMICONDUCTOR CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
Quarters Ended
Six Months Ended
July 4, 2025
April 4, 2025
June 28, 2024
July 4, 2025
June 28, 2024
Revenue
$
1,468.7
$
1,445.7
$
1,735.2
$
2,914.4
$
3,597.9
Cost of revenue
916.8
1,151.9
951.2
2,068.7
1,960.3
Gross profit
551.9
293.8
784.0
845.7
1,637.6
Gross margin
37.6
%
20.3
%
45.2
%
29.0
%
45.5
%
Operating expenses:
Research and development
143.8
164.1
156.5
307.9
306.5
Selling and marketing
63.3
68.3
68.6
131.6
137.7
General and administrative
91.2
84.4
85.0
175.6
180.3
Amortization of acquisition-related intangible assets
11.0
11.4
12.9
22.4
25.5
Restructuring, asset impairments and other, net
49.2
539.3
72.5
588.5
73.9
Total operating expenses
358.5
867.5
395.5
1,226.0
723.9
Operating income (loss)
193.4
(573.7
)
388.5
(380.3
)
913.7
Other income (expense), net:
Interest expense
(17.9
)
(18.0
)
(15.7
)
(35.9
)
(31.3
)
Interest income
25.2
26.6
27.4
51.8
55.0
Other income
1.5
4.1
1.9
5.6
2.9
Other income (expense), net
8.8
12.7
13.6
21.5
26.6
Income (loss) before income taxes
202.2
(561.0
)
402.1
(358.8
)
940.3
Income tax (provision) benefit
(30.5
)
75.8
(63.7
)
45.3
(148.2
)
Net income (loss)
171.7
(485.2
)
338.4
(313.5
)
792.1
Less: Net income attributable to non-controlling interest
(1.4
)
(0.9
)
(0.2
)
(2.3
)
(0.9
)
Net income (loss) attributable to ON Semiconductor Corporation
$
170.3
$
(486.1
)
$
338.2
$
(315.8
)
$
791.2
Net income (loss) per share of common stock:
Basic
$
0.41
$
(1.15
)
$
0.79
$
(0.76
)
$
1.85
Diluted
$
0.41
$
(1.15
)
$
0.78
$
(0.76
)
$
1.82
Weighted average common shares outstanding:
Basic
414.6
421.3
429.1
418.0
428.6
Diluted
414.9
421.3
433.2
418.0
434.9
ON SEMICONDUCTOR CORPORATION UNAUDITED CONSOLIDATED BALANCE SHEETS (in millions)
July 4, 2025
April 4, 2025
December 31, 2024
Assets
Cash and cash equivalents
$
2,526.7
$
2,762.5
$
2,691.3
Short-term investments
300.0
250.0
300.0
Receivables, net
927.0
825.0
1,160.1
Inventories
2,087.1
2,078.2
2,242.0
Assets held-for-sale
63.5
45.7
5.3
Other current assets
447.1
365.1
353.3
Total current assets
6,351.4
6,326.5
6,752.0
Property, plant and equipment, net
3,714.9
3,840.5
4,361.4
Goodwill
1,641.6
1,641.6
1,587.9
Intangible assets, net
296.9
309.2
257.9
Deferred tax assets
754.8
745.5
729.9
ROU financing lease assets
39.3
39.9
40.5
Other assets
327.3
350.7
360.2
Total assets
$
13,126.2
$
13,253.9
$
14,089.8
Liabilities and Stockholders' Equity
Accounts payable
$
474.3
$
496.6
$
574.5
Accrued expenses and other current liabilities
790.0
781.3
760.0
Current portion of financing lease liabilities
0.4
0.4
0.3
Total current liabilities
1,264.7
1,278.3
1,334.8
Long-term debt
3,350.7
3,348.3
3,345.9
Deferred tax liabilities
39.9
45.6
37.6
Long-term financing lease liabilities
23.7
21.6
20.7
Other long-term liabilities
486.0
511.2
536.3
Total liabilities
5,165.0
5,205.0
5,275.3
ON Semiconductor Corporation stockholders' equity:
