[NXP Semiconductors Reports Second Quarter 2025 Results](index=1&type=section&id=NXP%20Semiconductors%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Financial & Strategic Highlights](index=1&type=section&id=Key%20Highlights%20for%20the%20Second%20Quarter%202025) NXP reported Q2 2025 revenue of $2.93 billion, a 6% YoY decrease, achieving a 32.0% non-GAAP operating margin and progressing strategic initiatives in autonomous driving and software-defined vehicles Q2 2025 Key Financial Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Revenue | $2.93 billion | -6% | | GAAP Gross Margin | 53.4% | | | Non-GAAP Gross Margin | 56.5% | | | GAAP Operating Margin | 23.5% | | | Non-GAAP Operating Margin | 32.0% | | | GAAP Diluted EPS | $1.75 | | | Non-GAAP Diluted EPS | $2.72 | | | Cash Flow from Operations | $779 million | | | Non-GAAP Free Cash Flow | $696 million | - Capital return to shareholders in Q2 2025 totaled **$461 million**, comprising **$204 million** in share buybacks and **$257 million** in dividends. This represents **66%** of the quarter's non-GAAP free cash flow[2](index=2&type=chunk) - Strategic initiatives in the quarter included[2](index=2&type=chunk) - **Autonomous Driving**: Announced third-generation S32R47 imaging radar processors for Level 2+ to Level 4 autonomous driving - **Software-Defined Vehicle (SDV)**: Partnered with Rimac Technology to co-develop an SDV architecture using NXP's S32E2 processors - **Acquisition**: Completed the acquisition of TTTech Auto, a leader in safety-critical systems for SDVs [Second Quarter 2025 Performance Analysis](index=2&type=section&id=Summary%20of%20Reported%20Second%20Quarter%202025) Total revenue for Q2 2025 was $2.926 billion, up 3% sequentially but down 6% year-over-year, with the Automotive segment flat and other segments experiencing declines, resulting in a 32.0% non-GAAP operating margin Q2 2025 Financial Performance vs. Prior Periods ($ millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | Q-Q Change | Y-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | **$2,926** | **$2,835** | **$3,127** | **3%** | **-6%** | | GAAP Gross Profit | $1,562 | $1,560 | $1,792 | —% | -13% | | Non-GAAP Gross Profit | $1,652 | $1,591 | $1,833 | 4% | -10% | | GAAP Operating Income | $687 | $723 | $896 | -5% | -23% | | Non-GAAP Operating Income | $935 | $904 | $1,071 | 3% | -13% | | GAAP Net Income | $445 | $490 | $658 | -9% | -32% | | Non-GAAP Net Income | $690 | $673 | $829 | 3% | -17% | Q2 2025 Revenue by End-Market ($ millions) | End-Market | Q2 2025 | Q1 2025 | Q2 2024 | Q-Q Change | Y-Y Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Automotive | $1,729 | $1,674 | $1,728 | 3% | —% | | Industrial & IoT | $546 | $508 | $616 | 7% | -11% | | Mobile | $331 | $338 | $345 | -2% | -4% | | Comm. Infra. & Other | $320 | $315 | $438 | 2% | -27% | - Channel inventory remained stable quarter-over-quarter at **9 weeks**, but this is higher than the **7 weeks** reported in the same period last year[4](index=4&type=chunk) [Third Quarter 2025 Guidance](index=3&type=section&id=Guidance%20for%20the%20Third%20Quarter%202025) [Q3 2025 Outlook](index=3&type=section&id=Guidance%20for%20the%20Third%20Quarter%202025) NXP projects Q3 2025 revenue between $3.05 billion and $3.25 billion, reflecting an 8% sequential growth and a 3% year-over-year decline at the midpoint, with an anticipated non-GAAP operating margin of 33.7% Q3 2025 Guidance (Midpoint) | Metric | GAAP (Midpoint) | Non-GAAP (Midpoint) | | :--- | :--- | :--- | | Total Revenue | $3,150 M | $3,150 M | | Revenue Growth (QoQ) | 8% | 8% | | Revenue Growth (YoY) | -3% | -3% | | Gross Margin | 56.0% | 57.0% | | Operating Margin | 28.0% | 33.7% | | Diluted EPS | $2.42 | $3.10 | - The guidance for Q3 2025 reflects a combination of emerging cyclical improvement in core end markets and the performance of company-specific growth drivers[1](index=1&type=chunk) - Key expected adjustments from GAAP to non-GAAP in Q3 2025 include[11](index=11&type=chunk) - PPA effects: **$(40) million** impact on Operating Income - Share-based Compensation: **$(116) million** impact on Operating Income - Restructuring and Other Incidentals: **$(24) million** impact on Operating Income [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Operations](index=5&type=section&id=Table%201%3A%20Condensed%20consolidated%20statement%20of%20operations%20%28unaudited%29) NXP reported Q2 2025 revenue of $2.926 billion, resulting in $687 million operating income and $445 million net income attributable to stockholders, or $1.75 per diluted share Q2 2025 Statement of Operations Highlights ($ millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Revenue | 2,926 | 2,835 | 3,127 | | Gross Profit | 1,562 | 1,560 | 1,792 | | Operating Income | 687 | 723 | 896 | | Net Income Attributable to Stockholders | 445 | 490 | 658 | | Diluted EPS ($) | 1.75 | 1.92 | 2.54 | [Condensed Consolidated Balance Sheet](index=6&type=section&id=Table%202%3A%20Condensed%20consolidated%20balance%20sheet%20%28unaudited%29) As of June 29, 2025, NXP's total assets were $25.25 billion, with cash and equivalents at $3.17 billion, total liabilities at $15.31 billion, and stockholders' equity at $9.57 billion Balance Sheet Highlights as of June 29, 2025 ($ millions) | Account | June 29, 2025 | March 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 3,170 | 3,988 | 2,859 | | Total current assets | 7,686 | 8,025 | 6,880 | | Total assets | 25,250 | 25,180 | 23,196 | | Long-term debt | 9,479 | 10,226 | 9,681 | | Total liabilities | 15,314 | 15,503 | 13,851 | | Total stockholders' equity | 9,569 | 9,322 | 9,018 | [Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Table%203%3A%20Condensed%20consolidated%20statement%20of%20cash%20flows%20%28unaudited%29) In Q2 2025, NXP generated $779 million in operating cash flow, while investing activities used $892 million and financing activities used $709 million, resulting in an $818 million decrease in cash Q2 2025 Cash Flow Summary ($ millions) | Cash Flow Activity | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 779 | 565 | 761 | | Net cash from investing activities | (892) | (216) | (239) | | Net cash from financing activities | (709) | 345 | (567) | | **Increase (decrease) in cash** | **(818)** | **696** | **(49)** | [Reconciliation of GAAP to Non-GAAP Results](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) [Key Metrics Reconciliation](index=8&type=section&id=Table%204%3A%20Financial%20Reconciliation%20of%20GAAP%20to%20non-GAAP%20Results%20%28unaudited%29) For Q2 2025, non-GAAP gross profit was $1.652 billion (56.5% margin) and non-GAAP operating income was $935 million (32.0% margin), with non-GAAP diluted EPS at $2.72, reflecting adjustments from GAAP figures Q2 2025 GAAP to Non-GAAP Reconciliation ($ millions) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $1,562 | $90 | $1,652 | | Operating Income | $687 | $248 | $935 | | Net Income Attributable to Stockholders | $445 | $245 | $690 | Q2 2025 GAAP to Non-GAAP Diluted EPS Reconciliation ($) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Diluted EPS | $1.75 | $0.97 | $2.72 | [Adjusted EBITDA and Free Cash Flow](index=10&type=section&id=Table%208%3A%20Adjusted%20EBITDA%20and%20Free%20Cash%20Flow%20%28unaudited%29) NXP reported Q2 2025 Adjusted EBITDA of $1.103 billion and strong non-GAAP free cash flow of $696 million, derived from $779 million in cash from operations Adjusted EBITDA Calculation for Q2 2025 ($ millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | GAAP Net income | 457 | 497 | 664 | | EBITDA (Non-GAAP) | 866 | 928 | 1,106 | | **Adjusted EBITDA (Non-GAAP)** | **1,103** | **1,073** | **1,243** | Free Cash Flow Calculation for Q2 2025 ($ millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 779 | 565 | 761 | | Net capital expenditures | (83) | (138) | (184) | | **Non-GAAP free cash flow** | **696** | **427** | **577** |

Group 1 - NXP Semiconductors' Q3 revenue outlook of $3.05 billion to $3.25 billion did not meet some investors' optimistic expectations, leading to a more than 5% drop in after-hours trading [1] - The company's revenue forecast reflects ongoing challenges in the industry, particularly due to the impact of tariffs from the Trump administration, which have disrupted global supply chains and created uncertainties in customer orders [1][2] - Despite the disappointing guidance, NXP's adjusted earnings per share forecast of $2.89 to $3.30 exceeds analysts' average prediction of $3.06, indicating a potential positive outlook for core markets [2] Group 2 - The automotive and industrial sectors are experiencing weakened demand, affecting NXP and its competitors like Infineon Technologies and STMicroelectronics [2] - Analysts warn that automotive chip manufacturers may face increased pricing pressure as Renault has lowered its outlook, and European customers' restocking demand to avoid tariffs is expected to end soon [3] - The oversupply of electric vehicle chips, particularly due to weak demand outside of China, has been suppressing industry sales for 18 months [2][3]

Group 1 - The Nasdaq and S&P 500 indices reached new highs as investors await upcoming earnings reports [1] - U.S. Treasury yields increased, while the dollar declined, and gold prices rose nearly 1.5% to a more than one-month high [1] - NXP Semiconductors reported weak Q2 automotive chip sales, with Q3 revenue expected to decline further, resulting in a post-market drop of over 5% [1] Group 2 - The U.S. Treasury Secretary emphasized the need for a "comprehensive institutional review" by the Federal Reserve, prioritizing quality over timelines in trade negotiations [1] - The outlook for a U.S.-EU trade agreement appears bleak, with the EU considering a "nuclear option" for countermeasures [1] - China announced new housing rental regulations aimed at increasing the supply of rental housing through multiple channels, effective from September 15 [1] Group 3 - GPT-5 is expected to be released within two weeks, and GPT-6 may already be in training, with significant GPU resources allocated [1] - Alibaba launched an upgraded version of Qwen3, outperforming leading closed-source models like Kimi-K2 [1]

Core Insights - NXP Semiconductors reported a revenue of $2.93 billion for the quarter ended June 2025, reflecting a year-over-year decline of 6.4% [1] - The earnings per share (EPS) for the quarter was $2.72, down from $3.20 in the same quarter last year, but exceeded the consensus estimate of $2.66 by 2.26% [1][3] - The revenue surpassed the Zacks Consensus Estimate of $2.9 billion by 0.9% [1] Revenue Breakdown - Automotive revenue reached $1.73 billion, slightly above the estimated $1.71 billion, marking a year-over-year increase of 0.1% [4] - Communications Infrastructure & Other revenue was $320 million, below the estimated $324.62 million, showing a significant decline of 26.9% year-over-year [4] - Industrial & IoT revenue totaled $546 million, exceeding the average estimate of $537.76 million, but represented an 11.4% decrease compared to the previous year [4] - Mobile revenue was reported at $331 million, slightly above the estimated $324.9 million, indicating a year-over-year decline of 4.1% [4] Stock Performance - NXP shares have returned +8.1% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Insights - NXP Semiconductors reported quarterly earnings of $2.72 per share, exceeding the Zacks Consensus Estimate of $2.66 per share, but down from $3.2 per share a year ago, indicating an earnings surprise of +2.26% [1] - The company achieved revenues of $2.93 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.90%, although this is a decline from $3.13 billion in the same quarter last year [2] - NXP has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of NXP's stock will largely depend on management's commentary during the earnings call and the revisions of earnings estimates [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.02, with expected revenues of $3.07 billion, while the estimate for the current fiscal year is $11.51 on $11.97 billion in revenues [7] Industry Context - The Semiconductor - Analog and Mixed industry, to which NXP belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Microchip Technology, a competitor in the same industry, is expected to report a significant decline in earnings and revenues for the quarter ended June 2025, with an anticipated EPS of $0.23, down 56.6% year-over-year, and revenues of $1.05 billion, down 15.2% [9][10]

NXP shares slid in late trading after the chipmaker posted a second-quarter sales decline, hurt by a sluggish automotive market https://t.co/jPDf3dZurk ...

预计三季度营收30.5亿-32.5亿美元，分析师预期30.7亿美元。 恩智浦二季度营收29.3亿美元，分析师预期29亿美元。 ...

EINDHOVEN, The Netherlands, July 21, 2025 (GLOBE NEWSWIRE) -- NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter, which ended June 29, 2025. “NXP delivered quarterly revenue of $2.93 billion, above the midpoint of our guidance, with all our focus end-markets performing above expectations. Our guidance for the third quarter reflects the combination of an emerging cyclical improvement in NXP's core end markets as well as the performance of our company specific growt ...

从行业整体表现来看，已披露财报的半导体企业呈现分化：美光科技(MU.US)二季度营收同比增长36.6%超预期4.9%，但股价仍下跌 1.2%;企鹅解决方案(PENG.US)营收增长7.9%不及预期1.4%，股价却逆势上涨10.6%。 当前半导体板块情绪回暖，过去一个月行业股价平均涨幅达10.4%，恩智浦股价同期上涨8.1%至225.9美元，距离分析师平均目标价 247.22美元尚有约9%空间。 恩智浦在汽车电子业务方面提出"软件定义汽车"战略，通过软硬件整合应对整车销量波动，中长期受益于电气化升级;在工业与物联网 方面，虽短期承压，但公司通过低功耗处理器、无线连接方案绑定云服务商与系统集成商，往智慧楼宇、工业机器人等场景拓展;而在 新兴领域，恩智浦则布局移动支付、超宽带定位技术，培育新的增长点。 智通财经APP获悉，芯片制造商恩智浦半导体(NXPI.US)将于本周一盘后发布最新财报，市场正密切关注其业绩表现。本季度分析师普 遍预计营收将同比收窄降幅至7.2%，对应29亿美元规模，调整后每股收益则看至2.66美元，分析师平均目标价为247.22美元。 上季度公司营收达28.4亿美元，同比下降9.3%，与华尔街预 ...

Core Insights - China's new energy vehicle production has significantly increased, reaching 5.699 million units from January to May 2025, a year-on-year growth of 45.2% [2] - The demand for high-performance automotive semiconductor chips is rising due to the trends of electrification, intelligence, and connectivity in new energy vehicles [2] - NXP Semiconductors has established a new "China Division" to enhance its commitment to the Chinese market, integrating sales, R&D, operations, quality, and technical support [2][4] Industry Growth - The automotive chip market in China is projected to reach 90.54 billion yuan in 2024, a 6.52% increase from the previous year, and is expected to rise to 95.07 billion yuan in 2025 [2] - The industrial market in China has a compound annual growth rate (CAGR) of 8%, while the automotive market exceeds 10% [5] Market Characteristics - China accounts for approximately 70% of global electric vehicle production and sales, and 76% of global battery production [5] - The unique advantages of the Chinese market include rapid innovation, quick development cycles, aggressive market entry speeds, and a focus on cost-effectiveness [5] Challenges and Strategies - Challenges in the Chinese market include the integration of artificial intelligence, increased safety and security requirements, and the need for scalability [5] - Successful foreign semiconductor companies in China must integrate into the local ecosystem and develop cost-competitive products that meet local standards [6] Collaboration and Localization - NXP has announced collaborations with Chinese new energy vehicle companies such as Leap Motor, Geely, Deep Blue, and Great Wall Motors [7] - There is a trend among international semiconductor giants to localize supply chains to mitigate geopolitical risks and enhance supply chain resilience [7] - NXP aims to maximize its "in China for China" and "in China for global" strategies to support the evolving needs of Chinese automotive companies [6][7] Investment Outlook - China is projected to remain the top destination for semiconductor equipment investment, with an estimated $38 billion in 2025 [7]