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Mar 31, 2025
Tower Q1 2025 Earnings Report
Tower reported a modest revenue increase with stable margins despite a year-over-year decline in net income.
Key Takeaways
Tower Semiconductor achieved a 9% year-over-year revenue growth in Q1 2025, while maintaining gross profit levels. Net income decreased due to a prior year tax benefit, but operational performance remained consistent.
Revenue rose to $358,170,000, up from $327,238,000 in Q1 2024.
Net income declined to $40,142,000 due to a non-recurring tax benefit last year.
Adjusted EPS came in at $0.45, higher than GAAP EPS of $0.36.
Free cash flow was negative at -$17,489,000 due to significant investments.
Forward Guidance
Tower guided Q2 2025 revenues to $372 million, maintaining a sequential growth trajectory.
Positive Outlook
- Guides 6% YoY growth in Q2 2025 revenue.
- Targets continued QoQ growth throughout 2025.
- Sees strength in RF infrastructure including SiPho and SiGe.
- Expects growth in high voltage 200mm power management business.
- Entered new market for envelope trackers on 300mm platform.
Challenges Ahead
- Gross and operating margins slightly declined YoY.
- Net income impacted by absence of prior year tax benefit.
- Significant capital expenditures impacted free cash flow.
- Ongoing geopolitical risks may affect operations.
- Macroeconomic conditions continue to pose uncertainties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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