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On Semiconductor 8-K Report, Financial Results (May 5, 2025)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 5, 2025
Period End
May 5, 2025
Security
ON
In the record · 2016–202610-K1110-Q338-K162

ON filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 162 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Oct ’18Oct ’18
  2. Leadership change8-K · Oct ’20Oct ’20
  3. Impairment8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed May 5, 2025. Cited figures are marked; the original filing is the authoritative source.

onsemi (Nasdaq: ON) reported first quarter 2025 results for the quarter ended April 4, 2025, with revenue of $1,445.7 milliona, down from $1,722.5 million in the fourth quarter of 2024 and $1,862.7 million in the first quarter of 2024.

GAAP gross margin was 20.3% and non-GAAP gross margin was 40.0%. GAAP operating margin was (39.7)% and non-GAAP operating margin was 18.3%. GAAP diluted loss per share was $(1.15), compared with non-GAAP diluted earnings per share of $0.55b.

The GAAP results include $539.3 millionc of restructuring, asset impairments and other charges, net, and $283.4 million of restructuring-related inventory and other charges in cost of revenue. Cash flow was a relative bright spot. Net cash provided by operating activities was $602.3 million and free cash flow was $454.7 million, which the company describes as 31% of revenue.

Management states that the company returned 66% of first quarter free cash flow to stockholders through share repurchases, with $300.1 milliond of common stock repurchased during the quarter. Revenue by segment was PSG $645.1 million, AMG $566.4 million and ISG $234.2 million. Cash and cash equivalents were $2,762.5 million at quarter end, against long-term debt of $3,348.3 million.

For the second quarter of 2025, the company projects revenue of $1,400 million to $1,500 million, non-GAAP gross margin of 36.5% to 38.5%, and non-GAAP diluted EPS of $0.48 to $0.58. The filing furnishes the earnings release under Item 2.02, so it is not deemed filed under Section 18 of the Exchange Act.

02—Key points

Key Highlights

  1. Revenue of $1,445.7 million, compared with $1,722.5 million in Q4 2024 and $1,862.7 million in Q1 2024
  2. GAAP diluted loss per share of $(1.15) versus non-GAAP diluted EPS of $0.55, driven by $539.3 million of restructuring, asset impairments and other charges, net
  3. GAAP gross margin of 20.3% versus non-GAAP gross margin of 40.0%, which excludes $283.4 million of restructuring-related inventory and other charges
  4. Operating cash flow of $602.3 million and free cash flow of $454.7 million, which management says is 31% of revenue
  5. Returned 66% of first quarter free cash flow to stockholders through $300.1 million of share repurchases
  6. Q2 2025 guidance: revenue of $1,400 to $1,500 million and non-GAAP diluted EPS of $0.48 to $0.58
  7. Segment revenue: PSG $645.1 million, AMG $566.4 million and ISG $234.2 million

03—Questions

Frequently Asked Questions

  1. Why was the GAAP loss so much larger than the non-GAAP result?

    The GAAP net loss attributable to ON Semiconductor Corporation was $(486.1) million. The non-GAAP figure of $231.6 million excludes special items, including $539.3 million of restructuring, asset impairments and other charges, net, $283.4 million of restructuring-related inventory and other charges, and $120.0 million of income tax adjustments, among others.

  2. How did free cash flow perform this quarter?

    Net cash provided by operating activities was $602.3 million, and payments for property, plant and equipment were $147.6 million, leaving free cash flow of $454.7 million. The filing states that free cash flow increased 72% year-over-year to 31% of revenue, and that $300.1 million of share repurchases equaled 66% of first quarter free cash flow.

  3. What does the company expect for the second quarter of 2025?

    The company expects revenue of $1,400 million to $1,500 million, GAAP gross margin of 36.4% to 38.4% and non-GAAP gross margin of 36.5% to 38.5%. It expects GAAP diluted EPS of $0.45 to $0.55 and non-GAAP diluted EPS of $0.48 to $0.58, on 419 million diluted shares.

  4. How did revenue trend across the company's business segments?

    Compared with the fourth quarter of 2024, PSG revenue fell 20% to $645.1 million, AMG fell 7% to $566.4 million, and ISG fell 23% to $234.2 million. Compared with the first quarter of 2024, PSG fell 26%, AMG fell 19% and ISG fell 20%.

  5. What was the company's balance sheet position at quarter end?

    At April 4, 2025, cash and cash equivalents were $2,762.5 million and short-term investments were $250.0 million. Long-term debt was $3,348.3 million, and total ON Semiconductor Corporation stockholders' equity was $8,029.9 million.

04—Continue

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