VANCOUVER, British Columbia, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Methanex Corporation (TSX:MX) (Nasdaq:MEOH), the world's largest producer and supplier of methanol, today announced new strategic partnerships in two of the world’s key fueling hubs—the ARA (Amsterdam–Rotterdam–Antwerp) region and South Korea. These agreements further advance Methanex’s leadership role in supporting the marine energy transition. In the ARA region, Methanex is partnering with TankMatch—a recognized regional expert in inland wate ...

Industry Overview - The analog/mixed signal semiconductor market is expected to continue growing in 2025, following a strong performance in 2024, despite macroeconomic and geopolitical uncertainties, particularly related to China [1][3] - The semiconductor market is projected to grow by 15.4% in 2025, with a significant increase in integrated circuit (IC) growth at 17.9%, driven by logic, memory, and microcontrollers [2][6] - The industry is cyclical, with players often serving multiple markets to offset individual seasonality [5] Growth Drivers - The industrial end market is expected to see excellent growth over the next 5-10 years due to the adoption of new technologies such as AI, smart cities, and IoT [3][11] - The automotive market is being driven by electrification and increased electronics usage in vehicles, with a projected compound annual growth rate (CAGR) of 10.8% for auto chip demand from 2024 to 2029 [9][8] - The demand for AI-driven applications is significantly contributing to the growth in data center infrastructure, which saw an 18.9% increase in the first half of the year [2][6] Company Insights - **Analog Devices, Inc. (ADI)**: Positioned for long-term growth with innovative product development and strong business model; recent earnings exceeded estimates by 6.2%, with revenue and earnings expected to grow by 14.9% and 20.5% in 2025, respectively [23][25] - **Magnachip Semiconductor Corp. (MX)**: Focused on power IC and discrete businesses for better revenue growth; management anticipates new product revenue generation starting by the end of 2025, with significant contributions expected in 2026 [28][33] Market Performance - The semiconductor industry is currently trading at a forward P/E ratio of 28.36X, which is a premium compared to the broader technology sector and S&P 500 [19] - The industry has underperformed over the past year, losing 0.5% in value while the broader sector gained 29.8% [15] Future Outlook - Despite macroeconomic challenges, the semiconductor market is expected to see strong growth, with Gartner estimating a revenue growth of 12.6% in 2025 [6] - The industry's earnings outlook has shown signs of stabilization, although estimates for 2025 and 2026 have decreased by 23.8% and 26.1%, respectively, over the past year [13]

PART I—FINANCIAL INFORMATION [Item 1. Interim Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Interim%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited interim consolidated financial statements and accompanying detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets, offset by a notable increase in inventories and property Consolidated Balance Sheet Highlights (in thousands of U.S. dollars) | Metric | June 30, 2025 | December 31, 2024 | Change | Percentage Change | | :-------------------------------- | :------------ | :---------------- | :----- | :------------------ | | Total Assets | $370,531 | $379,316 | $(8,785) | -2.3% | | Cash and cash equivalents | $113,326 | $138,610 | $(25,284) | -18.2% | | Inventories, net | $37,571 | $30,535 | $7,036 | 23.0% | | Property, plant and equipment, net | $94,262 | $81,463 | $12,799 | 15.7% | | Total Liabilities | $100,369 | $102,519 | $(2,150) | -2.1% | | Total Stockholders' Equity | $270,162 | $276,797 | $(6,635) | -2.4% | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The company returned to profitability in Q2 2025, driven by a significant foreign currency gain Consolidated Statements of Operations Highlights (in thousands of U.S. dollars, except share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $47,622 | $46,400 | $92,344 | $89,838 | | Gross profit | $9,712 | $9,786 | $19,074 | $16,145 | | Operating loss | $(7,438) | $(5,723) | $(13,726) | $(15,114) | | Foreign currency gain (loss), net | $10,810 | $(3,625) | $10,405 | $(8,613) | | Net income (loss) | $323 | $(12,997) | $(8,555) | $(28,414) | | Basic earnings (loss) per common share (Total) | $0.01 | $(0.34) | $(0.23) | $(0.74) | | Diluted earnings (loss) per common share (Total) | $0.01 | $(0.34) | $(0.23) | $(0.74) | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income improved significantly due to positive foreign currency and derivative adjustments Consolidated Statements of Comprehensive Income (Loss) Highlights (in thousands of U.S. dollars) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $323 | $(12,997) | $(8,555) | $(28,414) | | Foreign currency translation adjustments | $875 | $(1,591) | $1,630 | $(5,088) | | Derivative adjustments | $1,696 | $(280) | $2,357 | $(826) | | Total comprehensive income (loss) | $2,894 | $(14,868) | $(4,568) | $(34,328) | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity decreased due to net loss and treasury stock acquisitions, partially offset by other comprehensive income Changes in Stockholders' Equity (in thousands of U.S. dollars, except share data) | Metric | Balance at Dec 31, 2024 | Stock-based compensation | Acquisition of treasury stock | Other comprehensive income, net | Net loss | Balance at June 30, 2025 | | :-------------------------- | :---------------------- | :----------------------- | :-------------------------- | :------------------------------ | :------- | :--------------------- | | Total Stockholders' Equity | $276,797 | $1,492 | $(3,498) | $3,987 | $(8,555) | $270,162 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents decreased as higher cash used in operations was not fully offset by lower investing outflows Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands of U.S. dollars) | Cash Flow Activity | 2025 | 2024 | Change | | :-------------------------------- | :------- | :------- | :------- | | Net cash used in operating activities | $(29,801) | $(5,084) | $(24,717) | | Net cash used in investing activities | $(7,712) | $(33,128) | $25,416 | | Net cash provided by financing activities | $2,639 | $22,893 | $(20,254) | | Net decrease in cash and cash equivalents | $(25,284) | $(25,625) | $341 | | Cash and cash equivalents at end of period | $113,326 | $132,467 | $(19,141) | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Note 1. Business, Basis of Presentation and Significant Accounting Policies](index=9&type=section&id=1.%20Business%2C%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) The company designs power semiconductor solutions and is transitioning to a pure-play Power company by discontinuing its Display business - Company is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions for various applications, including industrial, automotive, communication, consumer and computing[24](index=24&type=chunk) - The company develops and manufactures Power discrete products (MOSFETs, IGBTs) and Power integrated circuit ("IC") products (AC-DC/DC-DC converters, LED drivers, PMICs)[25](index=25&type=chunk) - The company has reclassified certain prior year amounts to conform to the current year's presentation for discontinued operations to reflect a plan to **shut down the Company's Display business** and transition into a pure-play Power company[28](index=28&type=chunk) [Note 2. Discontinued Operations](index=11&type=section&id=2.%20Discontinued%20Operations) The company is shutting down its Display business, incurring impairment charges and liquidation costs - On April 6, 2025, the Board of Directors unanimously approved the plan to **shut down the Company's Display business**, including the liquidation of MMS, its indirect wholly owned subsidiary[34](index=34&type=chunk) - For the three and six months ended June 30, 2025, the Company recognized **impairment charges of $7,362 thousand**, primarily related to certain design tool software contracts in connection with the liquidation of MMS[35](index=35&type=chunk) - The sale of EOL Display products and potential monetization of intellectual property assets are expected to generate **approximately $20 million in cash inflow** over 2 years from the second half of 2025. The total estimated cash cost of liquidation is **approximately $12 to $15 million**[38](index=38&type=chunk)[39](index=39&type=chunk) [Note 3. Inventories](index=13&type=section&id=3.%20Inventories) Net inventories increased significantly due to a rise in semi-finished goods and work-in-process Inventories (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Finished goods | $6,747 | $7,802 | | Semi-finished goods and work-in-process | $34,517 | $26,797 | | Raw materials | $4,660 | $3,607 | | Materials in-transit | $142 | $61 | | Less: inventory reserve | $(8,495) | $(7,732) | | Inventories, net | $37,571 | $30,535 | [Note 4. Property, Plant and Equipment](index=14&type=section&id=4.%20Property%2C%20Plant%20and%20Equipment) Net property, plant and equipment increased, driven by investments in machinery and construction in progress Property, Plant and Equipment (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Buildings and related structures | $23,705 | $21,873 | | Machinery and equipment | $141,153 | $126,971 | | Construction in progress | $12,269 | $2,738 | | Property, plant and equipment, net | $94,262 | $81,463 | - Magnachip Semiconductor, Ltd. (MSK) pledged its real property and buildings in Gumi, Korea, as collateral for a Loan Agreement with Korea Development Bank (KDB)[44](index=44&type=chunk) - MSK amended the Kun-Pledge Agreement to include certain machinery and equipment in its fabrication facility in Gumi, Korea, as collateral for an Equipment Financing Credit Agreement with KDB[45](index=45&type=chunk) [Note 5. Intangible Assets](index=14&type=section&id=5.%20Intangible%20Assets) Net intangible assets, primarily intellectual property, remained stable with minimal amortization expense Intangible Assets (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Intellectual property assets (Net) | $500 | $507 | | Aggregate amortization expenses (Six Months Ended June 30) | $132 (2025) | $166 (2024) | [Note 6. Leases](index=15&type=section&id=6.%20Leases) Total lease assets and liabilities decreased slightly, with a weighted average remaining lease term of 2.0 years Lease Information (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Total lease assets | $3,303 | $3,497 | | Total lease liabilities | $3,354 | $3,663 | | Weighted average remaining lease term (Operating leases) | 2.0 years | 2.5 years | | Total lease cost (Six Months Ended June 30) | $1,126 (2025) | $1,097 (2024) | [Note 7. Accrued Expenses](index=16&type=section&id=7.%20Accrued%20Expenses) Accrued expenses decreased slightly, mainly due to a reduction in withholding tax on intercompany interest income Accrued Expenses (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------------ | :------------ | :---------------- | | Payroll, benefits and related taxes | $6,077 | $5,518 | | Withholding tax attributable to intercompany interest income | $677 | $1,419 | | Outside service fees | $1,192 | $1,221 | | Others | $483 | $490 | | Accrued expenses | $8,429 | $8,648 | [Note 8. Derivative Financial Instruments](index=17&type=section&id=8.%20Derivative%20Financial%20Instruments) The company uses zero cost collar contracts to hedge foreign currency risk, resulting in a shift from net derivative liabilities to net assets - The Company's Korean subsidiary enters into zero cost collar contracts to hedge the risk of changes in functional-currency-equivalent cash flows attributable to currency rate changes on U.S. dollar denominated revenues[56](index=56&type=chunk) Fair Values of Derivative Contracts (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Derivative assets (Zero cost collars) | $354 | $0 | | Derivative liabilities (Zero cost collars) | $37 | $1,956 | | Hedge collateral (SC) | $0 | $1,000 | | Hedge collateral (NFIK) | $0 | $1,080 | - As of June 30, 2025, **$1,391 thousand is expected to be reclassified** from accumulated other comprehensive income into earnings within the next 12 months[60](index=60&type=chunk) [Note 9. Fair Value Measurements](index=19&type=section&id=9.%20Fair%20Value%20Measurements) Derivative financial instruments are measured at fair value using Level 2 inputs, while other financial instruments approximate carrying value Fair Value of Financial Instruments (in thousands) | Category | June 30, 2025 (Fair Value) | December 31, 2024 (Fair Value) | | :---------------------------------- | :------------------------- | :------------------------- | | Derivative assets (Level 2) | $354 | $0 | | Derivative liabilities (Level 2) | $37 | $1,956 | - The fair value of cash equivalents, accounts receivable, other receivables, accounts payable, and other accounts payable approximate carrying values due to their short-term nature[63](index=63&type=chunk) [Note 10. Accrued Severance Benefits](index=20&type=section&id=10.%20Accrued%20Severance%20Benefits) Net accrued severance benefits decreased significantly due to substantial severance payments made during the period Accrued Severance Benefits (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Accrued severance benefits, net | $14,248 | $17,094 | - Severance payments for the six months ended June 30, 2025, were **$9,843 thousand**, a significant increase from $1,362 thousand in the prior year[22](index=22&type=chunk)[66](index=66&type=chunk) - **96% of all employees** of the Company's Korean subsidiaries were eligible for severance benefits as of June 30, 2025[65](index=65&type=chunk) [Note 11. Long-Term Borrowings](index=21&type=section&id=11.%20Long-Term%20Borrowings) The company maintains outstanding Term and CAPEX loans secured by its assets in Gumi, Korea - Approximately **$29,490 thousand aggregate principal amount of the Term Loan** was outstanding as of June 30, 2025, bearing a variable interest rate and maturing on March 26, 2027[72](index=72&type=chunk)[73](index=73&type=chunk) - Approximately **$7,018 thousand aggregate principal amount of the CAPEX Loans** was outstanding as of June 30, 2025, bearing interest at 2.68% per annum and maturing on June 26, 2035[77](index=77&type=chunk) - All obligations under the Term Loan and CAPEX Loans are secured by the company's Fab 3 properties and certain machinery and equipment located in Gumi, Korea[72](index=72&type=chunk)[76](index=76&type=chunk) [Note 12. Foreign Currency Gain (Loss), Net](index=21&type=section&id=12.%20Foreign%20Currency%20Gain%20(Loss)%2C%20Net) The company reported a significant net foreign currency gain due to the appreciation of the Korean won against the U.S. dollar Foreign Currency Gain (Loss), Net (in thousands of U.S. dollars) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Foreign currency gain (loss), net | $10,405 | $(8,613) | - The net foreign currency gain for the six months ended June 30, 2025, was due to the **appreciation in value of the Korean won** relative to the U.S. dollar during the period[78](index=78&type=chunk) - A substantial portion of this gain/loss is non-cash translation gain/loss associated with intercompany long-term loans to the Korean subsidiary (MSK) denominated in U.S. dollars[78](index=78&type=chunk) [Note 13. Income Taxes](index=22&type=section&id=13.%20Income%20Taxes) The company recorded an income tax benefit primarily due to estimated taxable losses in its Korean subsidiary Income Tax Benefit, Net (in thousands of U.S. dollars) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :----------------------------- | :----------------------------- | | Income tax benefit, net | $4,537 | $3,480 | - The income tax benefit for the six months ended June 30, 2025, was primarily related to the estimated taxable loss in the Korean subsidiary, including loss recognized in connection with the shutdown of the discontinued Display business[81](index=81&type=chunk) - The company is currently evaluating the potential impacts of the One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, on its consolidated financial statements[83](index=83&type=chunk) [Note 14. Geographic and Other Information](index=23&type=section&id=14.%20Geographic%20and%20Other%20Information) The company operates in a single Power solutions segment, with Korea and Asia Pacific as its largest markets - The Company operates within a single operating segment, Power solutions business, which includes Power Analog Solutions and Power IC[85](index=85&type=chunk)[86](index=86&type=chunk) Power Solutions Business Revenues by Geographic Region (Six Months Ended June 30, in thousands of U.S. dollars) | Region | 2025 Amount | 2025 % of Total | 2024 Amount | 2024 % of Total | | :-------------------------- | :------------ | :-------------- | :------------ | :-------------- | | Korea | $44,437 | 48.1% | $36,974 | 44.0% | | Asia Pacific (other than Korea) | $43,437 | 47.0% | $43,690 | 52.0% | | United States | $2,652 | 2.9% | $646 | 0.8% | | Europe | $1,818 | 2.0% | $2,666 | 3.2% | | Total Power solutions business | $92,344 | 100.0% | $83,976 | 100.0% | - Net sales from the Company's top ten largest customers in the Power solutions business accounted for **74.0%** for the six months ended June 30, 2025[90](index=90&type=chunk) [Note 15. Accumulated Other Comprehensive Loss](index=25&type=section&id=15.%20Accumulated%20Other%20Comprehensive%20Loss) Accumulated other comprehensive loss decreased due to positive foreign currency and derivative adjustments Accumulated Other Comprehensive Loss (in thousands) | Category | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Foreign currency translation adjustments | $(19,297) | $(20,927) | | Derivative adjustments | $1,391 | $(966) | | Total | $(17,906) | $(21,893) | - During the three and six months ended June 30, 2025, the Company reclassified **$615 thousand** of cumulative translation adjustment from accumulated other comprehensive loss into loss in connection with the liquidation of MMS[94](index=94&type=chunk) [Note 16. Stock Repurchase](index=26&type=section&id=16.%20Stock%20Repurchase) The company continued its stock buyback program, repurchasing over one million shares in the first half of 2025 - On July 19, 2023, the Board of Directors authorized a **$50 million stock buyback program**[95](index=95&type=chunk) - During the first half of 2025, the Company repurchased **1,025,669 shares** of its common stock for an aggregate purchase price of **$3.4 million**, at a weighted average price per share of $3.32[97](index=97&type=chunk) [Note 17. Earnings (Loss) Per Share](index=27&type=section&id=17.%20Earnings%20(Loss)%20Per%20Share) Earnings per share improved significantly year-over-year, reflecting the company's return to net income in Q2 2025 Earnings (Loss) Per Share (in U.S. dollars, except share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS (Total) | $0.01 | $(0.34) | $(0.23) | $(0.74) | | Diluted EPS (Total) | $0.01 | $(0.34) | $(0.23) | $(0.74) | | Basic weighted average common stock outstanding | 36,083,703 | 38,174,920 | 36,483,551 | 38,359,851 | [Note 18. Commitments and Contingencies](index=28&type=section&id=18.%20Commitments%20and%20Contingencies) The company's advances to suppliers decreased substantially compared to the end of the previous fiscal year Advances to Suppliers (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Advances to Suppliers | $565 | $2,294 | [Note 19. Subsequent Events](index=28&type=section&id=19.%20Subsequent%20Events) Subsequent to the quarter end, the company entered into new derivative contracts and continued its stock repurchase program - In July 2025, the Company and NFIK entered into derivative contracts of zero cost collars for the period from April 2026 to September 2026, with total notional amounts of **$18,000 thousand**[101](index=101&type=chunk) - In July 2025, the Company repurchased **30,005 shares** of its common stock for an aggregate purchase price of **$0.1 million**[102](index=102&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes financial performance, strategic developments, macroeconomic conditions, and critical accounting policies [Overview](index=30&type=section&id=Overview) Magnachip is transitioning to a pure-play Power company by shutting down its Display business and focusing on its core competencies - The company is a designer and manufacturer of analog and mixed-signal power semiconductor platform solutions with approximately **45 years of operating history** and **1,000 registered patents**[109](index=109&type=chunk) - On March 7, 2025, the Board of Directors authorized a strategy to **transition into a pure-play Power company**, focusing investments on the Power Analog Solutions and Power IC businesses[112](index=112&type=chunk) - The company's internal manufacturing capacity provides greater control over costs, delivery, quality, and intellectual property, while outsourcing Power IC products allows dynamic adaptation to changing customer requirements without substantial capital investments[119](index=119&type=chunk)[121](index=121&type=chunk) [Recent Developments](index=32&type=section&id=Recent%20Developments) The company approved the shutdown of its Display business and secured new CAPEX loans for capital expenditures - On April 6, 2025, the Board of Directors unanimously approved the plan to **shut down the Display business** by the end of the second quarter of 2025[125](index=125&type=chunk) - The sale of 'end of life' (EOL) Display products and potential monetization of intellectual property assets are expected to generate **approximately $20 million in cash inflow** over 2 years from the second half of 2025[126](index=126&type=chunk) - MSK executed an Equipment Financing Credit Agreement with KDB for **CAPEX Loans up to KRW 38 billion (approximately $26.5 million)**, with approximately $7.0 million outstanding as of June 30, 2025[129](index=129&type=chunk)[131](index=131&type=chunk) [Macroeconomic Industry Conditions](index=33&type=section&id=Macroeconomic%20Industry%20Conditions) The semiconductor industry faces macroeconomic challenges that may cause volatility in the supply chain and market - The semiconductor industry faces macroeconomic challenges such as rising inflation, increased interest rates, supply chain disruptions, inventory corrections, and geopolitical tensions[133](index=133&type=chunk) - These conditions may cause volatility and unpredictability in the supply chain or market for semiconductor products and end-user demand[133](index=133&type=chunk) [Developments in Export Control Regulations](index=33&type=section&id=Developments%20in%20Export%20Control%20Regulations) The company is monitoring expanded U.S. export control regulations but does not currently anticipate a material impact on its business - The Bureau of Industry and Security (BIS) of the U.S. Department of Commerce published changes to U.S. export control regulations, including new restrictions on Chinese entities' ability to obtain advanced computing chips and manufacture advanced semiconductors[134](index=134&type=chunk) - New rules and clarifications went into effect in October 2022, October 2023, April 2024, and January 2025, significantly expanding the scope of items subject to export control[134](index=134&type=chunk) - Based on current understanding, the company **does not anticipate a material impact** on its current business but continues to review and assess these rules and regulations[134](index=134&type=chunk) [Explanation and Reconciliation of Non-U.S. GAAP Measures](index=34&type=section&id=Explanation%20and%20Reconciliation%20of%20Non-U.S.%20GAAP%20Measures) The company uses non-U.S. GAAP measures to provide a comparable view of its core operating performance - The company uses Adjusted EBITDA, Adjusted Operating Income (Loss), and Adjusted Net Income (Loss) as supplemental measures to assess core ongoing operating performance[136](index=136&type=chunk)[141](index=141&type=chunk)[145](index=145&type=chunk) - These non-U.S. GAAP measures exclude items such as equity-based compensation expense, foreign currency loss (gain), net, derivative valuation loss (gain), net, and other charges[136](index=136&type=chunk)[142](index=142&type=chunk)[145](index=145&type=chunk) Adjusted Non-GAAP Measures (Six Months Ended June 30, in millions of U.S. dollars) | Metric | 2025 | 2024 | | :-------------------------------------- | :----- | :----- | | Adjusted EBITDA from continuing operations | $(4.2) | $(5.8) | | Adjusted Operating Loss | $(11.0) | $(13.2) | | Adjusted Income (Loss) from continuing operations | $(6.5) | $(7.3) | [Factors Affecting Our Results of Operations](index=39&type=section&id=Factors%20Affecting%20Our%20Results%20of%20Operations) Financial performance is influenced by net sales, gross profit fluctuations, operating expenses, and foreign currency exchange rates - Net sales are primarily derived from the Power solutions business, with sales to the **top ten largest customers representing 74%** for the six months ended June 30, 2025[150](index=150&type=chunk)[151](index=151&type=chunk) - Gross profit fluctuates due to changes in sales volumes, average selling prices (ASP), product mix, manufacturing utilization, yields, material/labor costs, and depreciation expense[152](index=152&type=chunk) - A substantial portion of operating expenses is denominated in non-U.S. currencies, principally the Korean won, making reported results sensitive to exchange rate fluctuations. The company engages in hedging activities to mitigate this impact[160](index=160&type=chunk)[161](index=161&type=chunk) [Results of Operations – Comparison of Three Months Ended June 30, 2025 and 2024](index=41&type=section&id=Results%20of%20Operations%20%E2%80%93%20Comparison%20of%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Net income improved significantly due to a large foreign currency gain, despite a slight decrease in gross profit Key Financial Results (Three Months Ended June 30, in millions of U.S. dollars) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Total Revenues | $47.6 | $46.4 | $1.2 | 2.6% | | Net sales – Power solutions business | $47.6 | $44.1 | $3.6 | 8.1% | | Gross profit | $9.7 | $9.8 | $(0.1) | -0.8% | | Gross profit as % of net sales | 20.4% | 21.1% | -0.7% | - | | Operating loss | $(7.4) | $(5.7) | $(1.7) | 29.8% | | Foreign currency gain (loss), net | $10.8 | $(3.6) | $14.4 | - | | Net income (loss) | $0.3 | $(13.0) | $13.3 | - | | R&D expenses | $7.0 | $5.8 | $1.2 | 20.9% | - Net sales – Power solutions business in Korea **increased by 14.3% to $22.7 million**, driven by higher demand for MOSFETs and Power IC products for smartphone, LED television, and OLED IT device applications[174](index=174&type=chunk) [Results of Operations – Comparison of Six Months Ended June 30, 2025 and 2024](index=45&type=section&id=Results%20of%20Operations%20%E2%80%93%20Comparison%20of%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Net loss narrowed significantly due to increased gross profit and a substantial foreign currency gain Key Financial Results (Six Months Ended June 30, in millions of U.S. dollars) | Metric | 2025 | 2024 | Change | % Change | | :-------------------------------- | :----- | :----- | :----- | :------- | | Total Revenues | $92.3 | $89.8 | $2.5 | 2.8% | | Net sales – Power solutions business | $92.3 | $84.0 | $8.4 | 10.0% | | Gross profit | $19.1 | $16.1 | $2.9 | 18.1% | | Gross profit as % of net sales | 20.7% | 18.0% | 2.7% | - | | Operating loss | $(13.7) | $(15.1) | $1.4 | -9.3% | | Foreign currency gain (loss), net | $10.4 | $(8.6) | $19.0 | - | | Net loss | $(8.6) | $(28.4) | $19.9 | - | | R&D expenses | $12.9 | $12.0 | $0.9 | 7.8% | - Net sales – Power solutions business in Korea **increased by 20.2% to $44.4 million**, primarily due to higher demand for MOSFETs in communication applications and Power IC products for LED televisions and OLED IT devices[196](index=196&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital and cash decreased, with projected capital expenditures of $32-34 million for 2025 Liquidity and Capital Resources Highlights (in millions of U.S. dollars) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Working Capital | $156.5 | $173.0 | | Cash and cash equivalents (MSK) | $102.5 | - | | Net cash used in operating activities (6 months) | $(29.8) | $(5.1) | | Net cash used in investing activities (6 months) | $(7.7) | $(33.1) | | Net cash provided by financing activities (6 months) | $2.6 | $22.9 | | Capital expenditures (6 months) | $12.1 | $1.6 | - Projected capital expenditures for the year ending December 31, 2025, are in the range of **$32 to $34 million**, with $12.1 million incurred through June 30, 2025. These will be partially funded by the $26.5 million Equipment Financing Credit Agreement[222](index=222&type=chunk) [Critical Accounting Policies and Estimates](index=51&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies, which involve significant management judgment, remain unchanged from the 2024 Form 10-K - Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets, liabilities, revenues, expenses, and disclosures[224](index=224&type=chunk) - Critical accounting policies involve a high degree of judgment and estimates about inherently uncertain matters, based on historical experience, current conditions, and other reasonable assumptions[225](index=225&type=chunk) - There have been **no material changes** to the critical accounting policies and estimates as compared to those included in the company's 2024 Form 10-K[226](index=226&type=chunk) [Item 3. [Reserved]](index=52&type=section&id=Item%203.%20%5BReserved%5D) This item is reserved and contains no information [Item 4. Controls and Procedures](index=52&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective** as of June 30, 2025[228](index=228&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal control over financial reporting[229](index=229&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) There are no new material legal proceedings to report in this quarterly report - For a discussion of legal proceedings, refer to "Part I, Item 3. Legal Proceedings" of the company's 2024 Form 10-K[231](index=231&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Form 10-K - There have been **no material changes** to the risk factors disclosed in Part I, Item 1A of the company's 2024 Form 10-K[235](index=235&type=chunk) - The Company is subject to risks and uncertainties, any of which could have a significant or material adverse effect on its business, financial condition, liquidity or consolidated financial statements[233](index=233&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=54&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 731,557 shares during the quarter, with approximately $21.2 million remaining under its buyback program Common Stock Repurchases (Quarter Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate dollar value of Shares that may yet be Purchased under the Plans or Programs (in thousands) | | :-------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------------- | | April 2025 | 612,184 | $3.02 | $21,639 | | May 2025 | 2,723 | $3.28 | $21,639 | | June 2025 | 116,650 | $3.87 | $21,188 | | Total | 731,557 | $3.16 | $21,188 | - The repurchases were made under a **$50 million stock buyback program** authorized on July 19, 2023[238](index=238&type=chunk) [Item 3. Defaults Upon Senior Securities](index=54&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the company for the reported period [Item 4. Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company for the reported period [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) The company announced a voluntary resignation program as a cost reduction initiative, expected to save $2-3 million annually - No director or officer adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" during the last fiscal quarter[241](index=241&type=chunk) - A **voluntary resignation program** was announced as of August 1, 2025, as part of cost reduction initiatives to align spending with the strategy to become a pure-play power company[242](index=242&type=chunk) - The program is expected to result in estimated annual savings in operating expenses of **$2 to $3 million** with a payback period of 1.5 years[242](index=242&type=chunk) [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various agreements, policies, and certifications - The exhibits include amendments to employment agreements, an amended and restated executive service agreement, an amended and restated director compensation policy, and various certifications (e.g., Rule 13a-14(a), 18 U.S.C. Section 1350) and XBRL documents[244](index=244&type=chunk)

Group 1 - Magnachip Semiconductor Corporation, a South Korean producer of analog and mixed-signal power semiconductor solutions, has faced challenges [1] - The company was previously part of the Hynix Semiconductor Group [1]

Financial Data and Key Metrics Changes - Consolidated revenue from continuing operations for Q2 2025 was $47.6 million, up 8.1% year over year and above the midpoint of guidance [6][18] - Gross profit margin from continuing operations was 20.4%, down 2.1 percentage points from a year ago and slightly down from Q1 2025 [6][19] - Operating loss for Q2 was $7.4 million, compared to an operating loss of $5.7 million in Q2 2024 [21] - Q2 GAAP diluted earnings per share was $0.23, compared to a diluted loss per share of $0.06 in Q2 2024 [22] Business Line Data and Key Metrics Changes - Power Analog Solutions (PAS) revenue was $42.3 million, up 10.7% year over year and 6% quarter over quarter, representing nearly 90% of total revenue [9][18] - Revenue from Power IC was $5.4 million, up 11.1% year over year and 10.2% sequentially [19] - Design wins in Q2 totaled 71, up 61% from 44 design wins in Q2 2024, with 32% of wins for new products [10][11] Market Data and Key Metrics Changes - Communications segment revenue grew nearly 47% year over year, driven by flagship and mass market smartphone models [15] - Automotive segment revenue declined 25% year over year due to slower demand from EV makers [16] - The company expects automotive markets to represent over 10% of revenue by 2028, up from less than 5% in 2024 [11] Company Strategy and Development Direction - The company is executing a strategic pivot to become a pure play power semiconductor company [6] - The goal is to achieve $300 million in revenue and 30% gross margin in three years, with a focus on new generation products [7] - The company is targeting more than 50 new generation products by 2025 to drive higher revenue and margins [8] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macro challenges and pricing pressure in China affecting older generation products [6][17] - The company anticipates a softer second half of the year due to tariff uncertainties and competitive pricing pressures [33] - Management remains committed to maximizing shareholder value and prioritizing a return to profitability [33] Other Important Information - The company has begun to provide limited support for remaining customer obligations related to the discontinued display business, expecting cash inflow of approximately $20 million over two years [25] - The company is targeting annual OpEx savings of $2 million to $3 million through headcount reduction initiatives [29] Q&A Session Summary Question: Impact of pull-ins and tariff on revenue - Management indicated that the pull-ins from customers have already been accounted for in Q2, particularly in the TV-related area [36] Question: Gross margin decline reasons - The decline in gross margin is attributed to pricing pressure and lower utilization rates due to older generation products [38] Question: Strength in communications applications - Growth in communications is driven by design wins in mid-range to flagship AI smartphones and new AI portable phones [42] Question: OpEx reduction and EBITDA breakeven target - Management targets to achieve close to adjusted EBITDA breakeven by Q4 2025, with expected OpEx reduction of $2 million to $3 million annually [46]

Q2 2025 Financial Performance - Revenue from continuing operations was $47.6 million, up 6.5% quarter-over-quarter and up 8.1% year-over-year[5] - Gross profit margin from continuing operations was 20.4%, down 0.5 percentage points quarter-over-quarter and down 2.1 percentage points year-over-year[5] - GAAP diluted earnings per share was $0.23, compared to a loss of $0.14 in Q1 2025 and a loss of $0.06 in Q2 2024[5] - Non-GAAP diluted earnings per share was $0.07, compared to a loss of $0.10 in Q1 2025 and a loss of $0.08 in Q2 2024[5] Business Segment Performance - Power Analog Solutions (PAS) revenue was $42.3 million, representing approximately 90% of Q2 consolidated revenue, up 6.0% quarter-over-quarter and up 7.7% year-over-year[6] - Power IC (PIC) revenue was $5.4 million, representing 11% of Q2 consolidated revenue, up 10.2% quarter-over-quarter and up 11.1% year-over-year[6] Q3 2025 Outlook - Revenue from continuing operations is expected to be in the range of $44 million to $48 million, down 3.5% sequentially and down 13.2% year-over-year at the mid-point[9] - Gross profit margin from continuing operations is expected to be in the range of 18.5% to 20.5%[9] Full Year 2025 Outlook - Consolidated revenue from continuing operations is now expected to be flattish compared to the previous forecast of mid-to-high single digit growth year-over-year, compared with equivalent revenue of $185.8 million in 2024[9] - Consolidated gross profit margin from continuing operations is expected to be between 19% to 20%, compared to the previous forecast of 19.5% to 21.5%, and compared to 21.5% in 2024[9]

Exhibit 99.1 Magnachip Reports Results for Second Quarter 2025 Q2 Results Summary Q2 2025 Highlights SEOUL, South Korea, July 31, 2025 – Magnachip Semiconductor Corporation (NYSE: MX) ("Magnachip" or the "Company") today announced financial results for the second quarter 2025. Y.J. Kim, Magnachip's CEO said, "In Q2, Magnachip delivered our fifth consecutive quarter of year-over-year revenue growth from continuing operations, driven primarily by strong performances in our communications and computing applica ...

Core Points - Methanex Corporation has completed the acquisition of OCI Global's international methanol business, which was first announced in September 2024 [1][2] - The acquisition includes two world-scale methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business, and an idled methanol facility in the Netherlands [2] - The total transaction consideration is approximately $1.2 billion in cash, the issuance of about 9.9 million common shares, and the assumption of around $450 million in debt and leases [2] Company Overview - Methanex is the world's largest producer and supplier of methanol, based in Vancouver, Canada, and is publicly traded on the Toronto Stock Exchange and Nasdaq [4] - The company aims to ensure a smooth integration of the acquired business, maintain safe operations, and deliver strategic benefits from the acquisition [3]

Core Viewpoint - Methanex Corporation has received all necessary regulatory approvals to proceed with the acquisition of OCI Global's international methanol business, with the transaction expected to close on June 27, 2025 [1][2]. Group 1: Acquisition Details - The regulatory review period under the U.S. Hart-Scott-Rodino Antitrust Act has lapsed, allowing Methanex to finalize the acquisition [1]. - The acquisition is anticipated to close on June 27, 2025, pending customary closing conditions [1]. - Methanex's President and CEO, Rich Sumner, expressed optimism about the integration planning and the strategic benefits expected from the acquisition [2]. Group 2: Company Overview - Methanex is the world's largest producer and supplier of methanol, headquartered in Vancouver, Canada [2]. - The company's shares are traded on the Toronto Stock Exchange under the symbol "MX" and on the Nasdaq under "MEOH" [2].

Core Viewpoint - Magnachip Semiconductor Corp (NYSE: MX) was previously rated as a sell opportunity at $5.60 per share, but is now considered a buy at approximately $3.45 per share [1]. Company Summary - The company has seen a significant price drop from the previous rating, indicating a potential turnaround opportunity for investors [1]. - The current stock price of $3.45 suggests a favorable entry point for retail value investors looking to take calculated risks [1]. Analyst Background - The analyst has extensive experience in teaching and consulting, with a background in business and political activism, which may provide valuable insights into market trends [1]. - The analyst co-manages an investment firm and has a history of founding and managing businesses, indicating a strong understanding of the investment landscape [1].