Loading...
•
Jun 30
MagnaChip Q2 2025 Earnings Report
Magnachip reported its financial results for the second quarter of 2025, showing continued year-over-year revenue growth from continuing operations, primarily driven by strong performances in its Power Analog Solutions and Power IC businesses.
Key Takeaways
Magnachip delivered its fifth consecutive quarter of year-over-year revenue growth from continuing operations, with consolidated revenue increasing 8.1% to $47.6 million, exceeding guidance. This growth was primarily fueled by strong demand in Power Analog Solutions for communications and computing applications, and Power IC products. Despite the positive quarter, the company anticipates a softer second half of the year due to tariffs and pricing pressures, leading to a revised full-year revenue forecast of flattish growth.
Consolidated revenue from continuing operations increased 8.1% year-over-year to $47.6 million, surpassing the mid-point of guidance.
Power Analog Solutions (PAS) revenue from communication applications grew 46.7% year-over-year, and computing applications revenue grew 45.1% year-over-year.
Power IC (PIC) business revenue increased 11.1% year-over-year, driven by strength in TV-LED and OLED power ICs.
The company secured 71 design-wins in Q2, a 61% increase from the prior year, including new generation Super Junction products and low-voltage MOSFETs.
MagnaChip
MagnaChip
MagnaChip Revenue by Segment
Revenue by Segment
Power Solutions Business Revenue
CapyFin.comPower Analog Solutions Revenue
CapyFin.comPower IC Revenue
CapyFin.com Forward Guidance
Magnachip expects Q3 2025 consolidated revenue from continuing operations to be in the range of $44 million to $48 million, and consolidated gross profit margin to be between 18.5% and 20.5%. For the full-year 2025, consolidated revenue from continuing operations is now expected to be flattish, with a gross profit margin between 19% and 20%.
Positive Outlook
- Continued focus on developing new generation, feature-rich power products expected to command higher prices and margins.
- Commitment to the '3-3-3 strategy' aiming for $300 million in revenue with 30% gross margin.
- Proactive structural actions being taken to optimize operational efficiency.
- Strong design-win momentum, indicating future product adoption.
Challenges Ahead
- Anticipated softer second half of the year compared to prior expectations.
- Revised full-year 2025 revenue forecast to be flattish, down from previous mid-to-high single-digit growth outlook.
- Uncertain environment due to tariffs, particularly impacting China.
- Pricing pressures on older-generation products.
- Expected sequential and year-over-year revenue decline in Q3 2025 due to pull-ins from Q2 and competitive pricing.
Revenue & Expenses
Visualization of income flow from segment revenue to net income