01—Abstract
Summary
Summary of the 10-Q filed August 4, 2025. Cited figures are marked; the original filing is the authoritative source.
ON Semiconductor Corporation (onsemi) reported a sharply weaker second quarter 2025, with revenue of $1,468.7 milliona for the quarter ended July 4, 2025, down from $1,735.2 million a year earlier, and a decline of $266.5 million, or approximately 15%.
Gross profit fell to $551.9 millionb from $784.0 million, and operating income dropped to $193.4 million from $388.5 million. Net income attributable to ON Semiconductor Corporation was $170.3 million, or $0.41 per diluted share, compared with $338.2 million, or $0.78 per diluted share, in the prior-year quarter. Revenue declines were attributed to continued lower demand in the automotive and industrial end-markets across all three segments: PSG, AMG and ISG.
For the six months ended July 4, 2025, the company reported a net loss attributable to ON Semiconductor Corporation of $315.8 millionc, or $(0.76) per share, versus net income of $791.2 million a year earlier. Results were driven by the 2025 Manufacturing Realignment Program, which included restructuring, asset impairments and other charges of $588.5 million for the six months, $472.1 million of non-cash asset impairments, and $235.8 million of excess and obsolete inventory charges recorded in cost of revenue. Operating cash flow was $786.6 million for the six months, compared with $860.9 million a year earlier, and cash and short-term investments totaled approximately $2.8 billion.
Capital returns continued during the period, with 6.9 million shares repurchased for $303.0 milliond in the quarter and $605.6 million for the six months, leaving approximately $1,186.0 million authorized under the Share Repurchase Program through December 31, 2025. The company stated it was in compliance with its debt covenants and does not have meaningful debt maturing in the next 12 months. Management expects capital expenditures of approximately 5% of revenue for 2025.
02—Key points
Key Highlights
- Quarterly revenue of $1,468.7 million, down $266.5 million, or approximately 15%, year over year, driven by lower demand in automotive and industrial end-markets.
- Quarterly gross margin fell to 37.6% from 45.2%, and gross profit declined to $551.9 million from $784.0 million.
- Six-month operating loss of $(380.3) million, driven by $588.5 million of restructuring, asset impairments and other charges, including $472.1 million of non-cash impairments tied to held-for-sale manufacturing equipment.
- Excess and obsolete inventory charges of $235.8 million for the six months, of which $230.3 million related primarily to ISG work in process.
- Quarterly diluted EPS of $0.41 versus $0.78 a year earlier; six-month diluted EPS of $(0.76) versus $1.82.
- Repurchased 6.9 million shares for $303.0 million in the quarter; $1,186.0 million remained under the $3.0 billion Share Repurchase Program as of July 4, 2025.
- Cash and short-term investments of approximately $2.8 billion, with the Revolving Credit Facility having approximately $1.1 billion available.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, On Semiconductor kept $0.12.
- Revenue$1.47B100.0%
- Cost of revenue−$916.8M62.4%
- Gross profit$551.9M37.6%
- Operating costs−$358.5M24.4%
- Operating income$193.4M13.2%
- Interest, other & tax−$23.1M1.6%
- Net income$170.3M11.6%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed August 4, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $1.47B$1.76B | −16.6% |
| Cost of Revenue | $916.80M$962.50M | −4.7% |
| Gross Profit | $551.90M$799.40M | −31.0% |
| Operating Expenses | $358.50M$354.00M | +1.3% |
| Operating Income | $193.40M$445.40M | −56.6% |
| Net Income | $170.30M$401.70M | −57.6% |
| EPS (Basic) | $0.41$0.94 | −56.4% |
| EPS (Diluted) | $0.41$0.93 | −55.9% |
| Shares Outstanding (Basic) | 414.60M427.00M | −2.9% |
| Shares Outstanding (Diluted) | 414.90M431.70M | −3.9% |
05—Questions
Frequently Asked Questions
Why did ON Semiconductor report a net loss for the first half of 2025?
The six-month net loss attributable to ON Semiconductor Corporation of $315.8 million reflects $588.5 million of restructuring, asset impairments and other charges tied to the 2025 Manufacturing Realignment Program, including $472.1 million of non-cash impairments on manufacturing equipment and $235.8 million of excess and obsolete inventory charges. Lower sales volume also reduced gross profit.
What is driving the decline in revenue?
The filing attributes the revenue decline in each segment to continued decreases in demand in the automotive and industrial end-markets. Revenue from PSG fell $137.0 million, AMG fell $91.9 million and ISG fell $37.6 million in the second quarter.
What is the 2025 Manufacturing Realignment Program?
It is a restructuring program announced in the first quarter of 2025 to realign internal manufacturing capacity and capabilities with anticipated long-term needs. The company expects total severance costs of $64 million related to the termination of approximately 2,400 employees, and it has recorded impairments on manufacturing equipment and related charges.
How is the company returning capital to shareholders and how strong is its liquidity?
The company repurchased $605.6 million of common stock in the first six months of 2025 and had $1,186.0 million remaining under its Share Repurchase Program as of July 4, 2025. Cash and short-term investments were approximately $2.8 billion, and management believes cash on hand, operating cash flow and the Revolving Credit Facility are adequate for at least the next 12 months.
What are the company's debt obligations?
Gross long-term debt was $3,379.9 million as of July 4, 2025, including the 0% Notes due 2027, 0.50% Notes due 2029, 3.875% Notes due 2028 and a Revolving Credit Facility due 2028. The company reported it does not have meaningful debt maturing in the next 12 months and was in compliance with its covenants.
06—Continue