Onsemi posts $1.45B in revenue, swings to GAAP net loss but delivers $455M in free cash flow
Key Financial Results (Q1 2025):
• Revenue: $1.45 billion (down 22% year-over-year, down 16% quarter-over-quarter)
• GAAP gross margin: 20.3% (was 45.8% in Q1 2024)
• Non-GAAP gross margin: 40.0%
• GAAP operating margin: (39.7)%
• Non-GAAP operating margin: 18.3%
• GAAP net loss: $(486.1) million or $(1.15) per share
• Non-GAAP net income: $231.6 million or $0.55 per share
Segment Revenue (Year-over-Year):
• Power Solutions Group (PSG): $645 million (down 26%)
• Analog & Mixed Signal Group (AMG): $566 million (down 19%)
• Intelligent Sensing Group (ISG): $234 million (down 20%)
Cash and Balance Sheet Highlights:
• Free cash flow: $454.7 million (up 72% year-over-year)
• Cash and equivalents: $2.76 billion
• Capital expenditures: $147.6 million
• Share repurchases: $300.1 million (66% of free cash flow returned to shareholders)
Notable GAAP Charges:
• $283 million in restructuring-related inventory charges
• $539 million in asset impairments and restructuring
• $120 million income tax benefit adjustment
Q2 2025 Guidance:
• Revenue: $1.40 to $1.50 billion
• Non-GAAP gross margin: 36.5% to 38.5%
• Non-GAAP EPS: $0.48 to $0.58
• GAAP EPS: $0.45 to $0.55
• Non-GAAP operating expenses: $285 to $300 million
CEO Commentary:
CEO Hassane El-Khoury stated the company is maintaining discipline through the downturn by managing costs and manufacturing capacity. He highlighted ongoing design win momentum and a commitment to shareholder returns and strategic investments.