GLOBALFOUNDRIES (GFS) 2025 Conference June 03, 2025 02:20 PM ET Speaker0 Good morning, everyone. Welcome to this session. I'm Vivek Arya from BofA's semiconductor and semi cap equipment team. I'm really happy that you could join us for the session and really excited to introduce the team from GlobalFoundries, Tim Green, CEO and Sam Franklin, the Senior Vice President of Finance, Operations and Investor Relations. And as usual, I'll go through a quick fireside format, my questions. But if you have anything y ...

Core Insights - GlobalFoundries (GF) has signed a Memorandum of Understanding (MOU) with the Agency for Science, Technology and Research (A*STAR) to enhance its advanced packaging capabilities in Singapore [1][3] - The collaboration aims to address the growing demand for advanced packaging in the semiconductor industry, driven by applications in artificial intelligence (AI) and data-intensive technologies [2][4] - A*STAR will provide GF with access to R&D facilities and technical support, while GF will supply critical equipment to A*STAR, facilitating mutual growth in advanced packaging technologies [3][5] Company Developments - The partnership will enable skills enhancement initiatives for GF employees, focusing on developing expertise in advanced packaging [4][6] - This collaboration aligns with GF's global advanced packaging roadmap and its commitment to producing energy-efficient chips essential for AI applications [4][6] - GF's strategic roadmap includes the establishment of an Advanced Packaging and Photonics Center in New York, complementing the efforts in Singapore [6] Industry Context - Advanced packaging is a key R&D priority for the semiconductor industry, essential for delivering compact, high-performance, and energy-efficient solutions [2] - Singapore is positioning itself as a critical node in the global semiconductor supply chain, emphasizing the importance of R&D collaboration between public research and industry [5][6] - The partnership reflects a broader trend of nurturing high technology talent and continuous upskilling in response to evolving industry needs [4][5]

GLOBALFOUNDRIES (GFS) FY Conference May 13, 2025 11:30 AM ET Speaker0 All right. Good morning and welcome to JPMorgan's fifty third Annual Technology Media and Communications Conference. Again, my name is Harlan Sur. I'm the semiconductor and semiconductor capital equipment analyst for the firm. Very pleased to have John Hollister, Chief Financial Officer at GlobalFoundries. For those of you that don't know, GlobalFoundries, third or fourth largest semiconductor foundry in the world, leader in specialty and ...

Core Viewpoint - GlobalFoundries is expected to rebound after hitting a bottom in early Q2 2025, driven by a return to growth as indicated by Q1 results and positive forecasts for acceleration [1] Financial Performance - GlobalFoundries reported Q1 revenue of $1.59 billion, marking a 2.6% year-over-year growth, the first increase in eight quarters, surpassing MarketBeat's consensus by 60 basis points [5] - Net income increased by 57%, with adjusted earnings exceeding consensus forecasts, indicating a healthy financial condition [7] - The automotive segment grew by 10%, while the communications segment surged by 45% [6] Guidance and Forecast - The company provided guidance for a 2.75% year-over-year growth, aligning with analyst consensus, with potential for outperformance [8] - The 12-month stock price forecast is set at $48.33, representing a 32.82% upside from the current price of $36.39 [5] Market Position and Trends - GlobalFoundries is well-positioned to benefit from the semiconductor market's search for alternative sources, with fabs located in Singapore, Europe, and the U.S., and ongoing expansion in the U.S. [9] - The stock is currently rated as a Moderate Buy, but there is a tepid initial analyst reaction with some price targets being lowered [2][10] Technical Outlook - The technical analysis suggests that GFS stock reached its bottom in early April and is beginning to rebound, although it remains below critical resistance levels [12] - A price movement above $37.50 could signal a bullish trend, potentially pushing the stock into the $40 to $45 range [13]

Core Insights - GlobalFoundries Inc. reported revenue of $1.59 billion for the quarter ended March 2025, reflecting a 2.3% increase year-over-year, with EPS at $0.34 compared to $0.31 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.58 billion, resulting in a surprise of +0.46%, while the EPS surpassed the consensus estimate of $0.28 by +21.43% [1] Financial Performance Metrics - Wafer shipment volume reached 543, surpassing the average estimate of 523 based on four analysts [4] - Net revenue from wafer fabrication was $1.40 billion, slightly below the average estimate of $1.42 billion from five analysts [4] - Revenue from smart mobile devices was $586 million, lower than the estimated $632.51 million [4] - Non-wafer revenue and other generated $188 million, exceeding the average estimate of $161.26 million [4] - Revenue from home and industrial IoT was $328 million, above the estimated $295.75 million [4] - Automotive revenue was $309 million, below the average estimate of $339.69 million [4] - Revenue from communications infrastructure and datacenter was $174 million, exceeding the average estimate of $149.40 million [4] Stock Performance - Shares of GlobalFoundries have returned +11.4% over the past month, closely aligning with the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

GLOBALFOUNDRIES (GFS) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Company Participants Sam Franklin - SVP of Business Finance & OperationsTim Breen - CEONiels Anderskouv - President & Chief Operating OfficerJohn Hollister - Chief Financial OfficerMark Lipacis - Senior Managing DirectorCJ Muse - Senior Managing DirectorVivek Arya - Managing DirectorRoss Seymore - Managing DirectorChris Caso - Managing DirectorKrish Sankar - Managing DirectorBastien Faucon-Morin - Senior Equity Research Associate Conferenc ...

Group 1: Earnings Performance - GlobalFoundries Inc. reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 21.43% [1] - The company posted revenues of $1.59 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.46%, and compared to year-ago revenues of $1.55 billion [2] - Over the last four quarters, GlobalFoundries has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - GlobalFoundries shares have declined approximately 16.4% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.35 on revenues of $1.67 billion, and for the current fiscal year, it is $1.67 on revenues of $6.95 billion [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which GlobalFoundries belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Data and Key Metrics Changes - First quarter revenue was $1,585 million, representing a 13% decrease sequentially but a 2% increase year over year [26] - Gross profit for the first quarter was $379 million, translating to a gross margin of approximately 23.9% [29] - Net income for the first quarter was $189 million, an increase of $15 million from the previous year [30] Business Line Data and Key Metrics Changes - Automotive revenue represented approximately 19% of total revenue, decreasing 25% sequentially but increasing 16% year over year [28] - Smart mobile devices accounted for approximately 37% of total revenue, with a 21% sequential decrease and a 14% year-over-year decrease [27] - Communications infrastructure and data center revenue increased approximately 2% sequentially and 45% year over year, representing about 11% of total revenue [29] Market Data and Key Metrics Changes - Revenue from home and industrial IoT markets represented approximately 21% of total revenue, decreasing 8% sequentially but increasing 6% year over year [28] - The automotive market is expected to see meaningful year-over-year revenue growth in 2025 despite current soft demand [15] - The IoT segment returned to year-over-year growth in Q1, but caution is advised for the second half of the year due to tariff uncertainties [20] Company Strategy and Development Direction - The company is focused on free cash flow generation as a key objective, with $165 million of non-IFRS adjusted free cash flow reported for Q1 [7] - Investments exceeding $7 billion have been made in U.S., Germany, and Singapore facilities since 2021 to enhance manufacturing scale and technology diversity [10] - The serviceable addressable market is anticipated to grow at approximately 10% per annum through the end of the decade, with the company positioned to grow at or faster than market rates [11] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing geopolitical tensions and trade uncertainties impacting the global economy, but expressed confidence in the company's long-term growth opportunities [7] - The company is monitoring supply chain dynamics closely and diversifying sourcing strategies to mitigate potential impacts on costs [9] - Despite uncertainties, the long-term demand for essential chip technologies remains strong, with a robust financial profile and declining leverage [13] Other Important Information - The company expects total revenue for Q2 2025 to be approximately $1,675 million, with gross margin guidance in the range of 25% [32] - Operating expenses for Q1 were approximately 10% of total revenue, with R&D expenses at $114 million [29] - The company has a strong liquidity position with $4.7 billion in cash and marketable securities [13] Q&A Session Summary Question: Impact of tariffs on revenue - Management indicated no significant short-term impacts from tariffs on orders, but remains cautious about potential medium-term effects on consumer and industrial demand [41] Question: ASP outlook for the year - ASPs are expected to decline mid-single digits due to product mix and underutilization payments, but gross margins are expected to be supported by better utilization and structural cost improvements [47][49] Question: Growth expectations for communication infrastructure and data center - Management anticipates high teens growth for the communication infrastructure and data center segment in 2025, driven by substantial investments in data centers [55] Question: Recovery in automotive market - The automotive segment is expected to continue growing, with strong design wins and increasing semiconductor content in vehicles [67] Question: Inorganic growth strategy - The company is open to inorganic growth opportunities that align with its strategy, particularly in enhancing its differentiated chip portfolio [90]

Financial Data and Key Metrics Changes - First quarter revenue was $1,585 million, representing a 13% decrease quarter-over-quarter but a 2% increase year-over-year [25] - Non-IFRS adjusted free cash flow was $165 million, translating to a free cash margin of approximately 10% [8][30] - Gross profit for the first quarter was $379 million, resulting in a gross margin of approximately 23.9% [28] Business Line Data and Key Metrics Changes - Automotive revenue represented approximately 19% of total revenue, decreasing 25% sequentially but increasing 16% year-over-year [27] - Smart mobile devices accounted for approximately 37% of total revenue, with a 21% sequential decrease and a 14% year-over-year decrease [26] - Communication infrastructure and data center revenue increased approximately 2% sequentially and 45% year-over-year, representing about 11% of total revenue [28] Market Data and Key Metrics Changes - The automotive market is expected to see meaningful year-over-year revenue growth in 2025, driven by increasing silicon content in vehicles [15] - The IoT market returned to year-over-year growth in Q1, but uncertainty remains for the second half of the year due to tariffs [19] - The communication infrastructure and data center market is projected to grow in the high teens for the full year 2025 [54] Company Strategy and Development Direction - The company is focused on free cash flow generation and has invested over $7 billion in facilities since 2021 to support growth [10][11] - The serviceable addressable market is anticipated to grow at approximately 10% per annum through the end of the decade [11] - The company aims to leverage its differentiated technologies and global footprint to gain market share in critical end markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing trade and tariff disputes impacting the semiconductor supply chain and end market demand dynamics [9] - Despite uncertainties, the long-term demand for essential chip technologies remains strong, with a robust financial profile and declining leverage [13] - The company is monitoring the changing landscape closely and diversifying sourcing strategies to mitigate potential impacts [9][10] Other Important Information - The company expects total revenue for Q2 2025 to be approximately $1,675 million, with gross margin guidance of around 25% [31] - The company has a strong balance sheet with $4.7 billion in liquidity and a total debt of $1.1 billion [13][30] Q&A Session Summary Question: Impact of tariffs on revenue and manufacturing flexibility - Management noted no significant short-term impacts from tariffs on orders, but they are closely monitoring the situation for potential medium-term effects [38][40] Question: ASP trends and gross margin maintenance - ASPs are expected to decline mid-single digits due to product mix changes, but gross margins can be maintained through better utilization and structural cost improvements [42][46] Question: Growth expectations in communication infrastructure and data center - Management expects high teens growth in the communication infrastructure and data center segment for 2025, driven by substantial investments in data centers [54][56] Question: Outlook for automotive and smart mobile devices - The automotive segment is expected to continue growing, while the smart mobile device market is anticipated to remain flattish in 2025 [61][66] Question: Long-term margin targets - The company aims to exit 2025 with a gross margin of 30%, supported by improved utilization and product mix [70][78]

First Quarter 2025 Financial Results Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as ...