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Apr 04
ON Semiconductor Q1 2025 Earnings Report
onsemi reported lower revenue and a net loss due to restructuring charges and inventory adjustments.
Key Takeaways
onsemi faced a challenging Q1 2025 with a sharp revenue decline and a significant GAAP net loss driven by restructuring and impairment charges, though non-GAAP metrics showed continued profitability.
Reported GAAP net loss of $486,100,000 due to $539,300,000 in restructuring and impairment charges.
Revenue declined to $1,445,700,000, down from $1,862,700,000 a year earlier.
Non-GAAP EPS was $0.55, reflecting core operational profitability despite headline losses.
Returned 66% of free cash flow ($454,700,000) to shareholders via share repurchases.
ON Semiconductor
ON Semiconductor
Forward Guidance
onsemi expects Q2 2025 revenue between $1.4B and $1.5B, with stable non-GAAP EPS and modest improvement in gross margin.
Positive Outlook
- Revenue guidance maintained between $1,400,000,000 and $1,500,000,000.
- Gross margin expected to improve to 36.5%-38.5%.
- Non-GAAP EPS projected between $0.48 and $0.58.
- Continued focus on cost structure and capital efficiency.
- Strong design win momentum with global customers.
Challenges Ahead
- Downward pressure remains on demand across all business segments.
- Continued impact of restructuring and asset impairments.
- Sequential revenue decline of 16% in Q1 may carry into Q2.
- ISG and PSG segments saw the sharpest YoY declines.
- Limited visibility into macroeconomic recovery timing.