Core Insights - ON Semiconductor Corp. reported a revenue of $1.45 billion for Q1 2025, reflecting a year-over-year decline of 22.4% and an EPS of $0.55 compared to $1.08 a year ago, with a revenue surprise of +2.88% over estimates [1] - The company’s stock has returned +24.4% over the past month, outperforming the Zacks S&P 500 composite's +0.4% change, but currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Revenue Breakdown - Revenue from the Market- Others segment was $283.80 million, exceeding the estimated $275.77 million, but down 23.2% year-over-year [4] - Revenue from the Market- Industrial segment was $400 million, surpassing the average estimate of $387.81 million, yet reflecting a year-over-year decline of 16% [4] - Revenue from the Market- Automotive segment was $761.90 million, below the estimated $813.98 million, with a year-over-year decrease of 25.1% [4] - Revenue from the Product- Intelligent Sensing Group was $234.20 million, compared to the estimated $264.42 million, marking a year-over-year decline of 19.7% [4] - Revenue from the Product- Analog & Mixed-Signal Group was $566.40 million, falling short of the estimated $615.92 million [4] - Revenue from the Product- Power Solutions Group was $645.10 million, compared to the estimated $786.05 million [4]

分组1 - ON Semiconductor Corp. reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, but down from $1.08 per share a year ago, representing an earnings surprise of 7.84% [1] - The company posted revenues of $1.45 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.88%, but down from $1.86 billion year-over-year [2] - Over the last four quarters, ON Semiconductor has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] 分组2 - The stock has underperformed, losing about 33.5% since the beginning of the year compared to the S&P 500's decline of 3.3% [3] - The current consensus EPS estimate for the coming quarter is $0.53 on revenues of $1.43 billion, and for the current fiscal year, it is $2.47 on revenues of $5.9 billion [7] - The Zacks Industry Rank for Semiconductor - Analog and Mixed is currently in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced news journalists who produce independent content across various financial markets [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content includes insights into sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance its content creation and workflow processes [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all published content is edited and authored by humans [5]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $1,450 million and non-GAAP earnings per share of $0.55, both exceeding the midpoint of guidance, with a non-GAAP gross margin of 40% [5][16] - Free cash flow increased by 72% year over year to $455 million, representing 31% of revenue [24][16] - GAAP gross margin was 20.3%, while non-GAAP gross margin was down 530 basis points sequentially and 590 basis points year over year [21][24] Business Line Data and Key Metrics Changes - Automotive revenue was $762 million, a sequential decline of 26%, while industrial revenue was $400 million, down only 4% sequentially [19][20] - Revenue for the Power Solutions Group (PSG) was $645 million, a decrease of 20% quarter over quarter, and for the Analog and Mixed Signal Group (AMG) it was $566 million, down 7% quarter over quarter [20] - The Intelligent Sensing Group (ISG) revenue was $234 million, a 23% decrease quarter over quarter [20] Market Data and Key Metrics Changes - The company noted early signs of stabilization in certain parts of the industrial market, with traditional industrial segments starting to recover [6][60] - Medical and Aerospace and Defense revenues increased sequentially, while AI data center revenue more than doubled year over year [8][19] Company Strategy and Development Direction - The company is focused on streamlining operations through a "fab right" approach and investing in R&D to deliver differentiated products [5][6] - The company aims to increase share repurchase to 100% of free cash flow for 2025, with approximately $1.5 billion remaining on the repurchase authorization [17][16] - The company is committed to building a solid foundation for future growth, particularly in the silicon carbide market, which is expected to ramp significantly in the coming years [9][91] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in the semiconductor market, particularly in automotive and industrial sectors [6][60] - The geopolitical environment remains uncertain, but the company expects minimal direct impact from current tariff policies [6][100] - Management anticipates Q2 revenue in the range of $1,400 million to $1,500 million, with non-GAAP gross margin expected between 36.5% and 38.5% [27][28] Other Important Information - The company reduced internal fab capacity by 12% as part of its manufacturing realignment program, which is expected to lower ongoing depreciation costs by approximately $22 million annually [18][19] - A company-wide restructuring initiative led to a 9% reduction in the global workforce, expected to generate approximately $25 million in savings in Q2 [18][19] Q&A Session Summary Question: Why is ON Semiconductor's revenue guidance flat compared to peers? - Management indicated that the difference is due to the specific end markets ON is exposed to, particularly in automotive EVs, which have not yet seen recovery outside of China [30][31] Question: What metrics should be used to think about gross margin moving forward? - Management stated that for every point of utilization increase, gross margin improves by 25 to 30 basis points, with expectations for improvement as the market recovers [32][34] Question: What has changed regarding pricing? - Management noted that the extended downturn has necessitated a more opportunistic pricing approach to defend and increase market share, rather than a return to previous pricing strategies [39][40] Question: Update on the non-core business exit plan? - Management confirmed the plan to exit the non-core business remains, with approximately $300 million expected to be exited this year, depending on market conditions [47][50] Question: Expectations for demand within the automotive segment by geography? - Management highlighted strength in the Chinese automotive market, particularly driven by EVs, with expectations for new models ramping in the second half of 2025 [76][78] Question: What is the outlook for silicon carbide growth? - Management remains bullish on silicon carbide, expecting to maintain and increase market share, particularly in the growing EV market in China [52][91]

Financial Data and Key Metrics Changes - The company reported Q1 revenue of $1.45 billion and non-GAAP earnings per share of $0.55, both exceeding the midpoint of guidance with a non-GAAP gross margin of 40% [6][7][18] - Free cash flow increased by 72% year over year to $455 million, representing 31% of revenue [18][26] - GAAP gross margin was 20.3%, while non-GAAP gross margin was down 530 basis points sequentially and 590 basis points year over year [24][26] Business Line Data and Key Metrics Changes - Automotive revenue was $762 million, a 26% sequential decline, while industrial revenue was $400 million, down 4% sequentially [21][22] - Revenue for the Power Solutions Group (PSG) was $645 million, a decrease of 20% quarter over quarter, and for the Analog and Mixed Signal Group (AMG) it was $566 million, down 7% quarter over quarter [23] - The Intelligent Sensing Group (ISG) revenue was $234 million, a 23% decrease quarter over quarter [23] Market Data and Key Metrics Changes - The company noted early signs of stabilization in the industrial market, particularly in traditional industrial sectors [8][64] - In the automotive sector, leading OEMs are adopting silicon carbide technology, with expectations of significant growth in the Chinese EV market [11][80] Company Strategy and Development Direction - The company is focused on streamlining operations through a "fab right" approach and investing in R&D to enhance gross margins as the market recovers [7][17] - A restructuring initiative led to a 9% reduction in the global workforce, expected to generate approximately $25 million in savings [20] - The company aims to increase share repurchase to 100% of free cash flow for 2025, with $1.5 billion remaining on the repurchase authorization [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in certain markets, particularly industrial, while acknowledging ongoing inventory digestion and customer caution [8][9][64] - The geopolitical environment and tariff policies were highlighted as potential risks, but management expects minimal direct impact on the business [8][105] Other Important Information - The company anticipates Q2 revenue in the range of $1.4 billion to $1.5 billion, with non-GAAP gross margin expected between 36.5% and 38.5% [29] - Capital expenditures for Q1 were $147 million, with inventory down by $164 million quarter over quarter [27] Q&A Session Summary Question: Why is the revenue guidance flat compared to peers? - Management indicated that the difference is due to exposure to different end markets, particularly the automotive sector, which has not yet seen recovery outside of China [33][34] Question: What metrics should be used to think about gross margin? - Management stated that for every point of utilization increase, gross margin improves by 25 to 30 basis points, with expectations for improvement as the market recovers [35][36] Question: What has changed regarding pricing? - Management noted that pricing is being used as a tool to defend market share amid a prolonged downturn, with expectations of low single-digit pricing declines [42][43] Question: Update on the non-core business exit? - Management confirmed plans to exit the non-core business, with approximately $50 million already walked away from in Q1, expecting to exit around $300 million by year-end [52][55] Question: What is the outlook for silicon carbide growth? - Management remains bullish on silicon carbide, expecting to maintain and increase market share, particularly in the EV market in China [56][92] Question: What is the status of inventory management? - Management indicated a disciplined approach to channel inventory, with no significant changes expected in distribution inventory levels [68][70]

Quarterly Investor Presentation First Quarter 2025 © onsemi 2025 | Public Information | 1 © onsemi 2025 | Public Information Safe Harbor Statement and Non-GAAP and Forecast Information This presentation includes "forward-looking statements," as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this presentation could be deemed ...

Financial Performance - Revenue for Q1 2025 was $1,445.7 million, a decrease of 16% sequentially and 22% year-over-year[2]. - Operating loss was $573.7 million, with a GAAP operating margin of (39.7)% compared to 23.7% in Q4 2024[2]. - Net loss attributable to ON Semiconductor Corporation was $486.1 million, resulting in a diluted loss per share of $(1.15)[3]. - Net income for the quarter was a loss of $485.2 million, compared to a profit of $379.8 million in the same quarter last year[20]. - GAAP net income for the quarter ended April 4, 2025, was $(486.1) million, compared to $379.9 million for the previous quarter[25]. - Non-GAAP net income attributable to ON Semiconductor Corporation for the quarter ended April 4, 2025, was $231.6 million, a decrease from $404.2 million in the previous quarter[25]. Margins and Profitability - GAAP gross margin was 20.3%, down from 45.2% in Q4 2024 and 45.8% in Q1 2024; non-GAAP gross margin was 40.0%[3]. - Non-GAAP gross profit was $578.5 million, down from $780.7 million, reflecting a decrease of 26% year-over-year[22]. - Non-GAAP operating income was $264.0 million, down from $459.4 million, indicating a decline of approximately 42.5% year-over-year[22]. - Total special items impacting GAAP net income for the quarter included $717.7 million in restructuring-related charges[25]. Cash Flow and Shareholder Returns - Free cash flow increased by 72% year-over-year to $455 million, representing 31% of revenue[3]. - The company returned 66% of its first quarter free cash flow to stockholders through share repurchases[1]. - Free cash flow for the quarter ended April 4, 2025, was $454.7 million, up from $422.4 million in the previous quarter[29]. - Cash flows from operating activities generated $602.3 million, an increase from $579.7 million in the previous year[20]. - Net cash provided by operating activities for the quarter ended April 4, 2025, was $602.3 million, an increase from $579.7 million in the previous quarter[29]. Assets and Liabilities - Total assets decreased to $13,253.9 million from $14,089.8 million, a decline of approximately 5.9% year-over-year[18]. - Total liabilities decreased to $5,205.0 million from $5,275.3 million, a reduction of approximately 1.3% year-over-year[18]. - Ending cash, cash equivalents, and restricted cash increased to $2,765.2 million from $2,693.4 million, marking a rise of 2.7%[20]. Future Projections - Projected revenue for Q2 2025 is expected to be between $1,400 million and $1,500 million[6]. - Projected GAAP gross margin for Q2 2025 is estimated to be between 36.4% and 38.4%[6]. - The company expects to maintain a normalized non-GAAP effective tax rate of 16% through 2025[36]. Strategic Focus - The company continues to see strong design win momentum with major global customers across all end-markets[1]. - onsemi is focused on long-term value creation while investing in future growth opportunities[1]. Stock Repurchase and Compensation - The company repurchased common stock worth $300.1 million during the quarter, compared to $204.1 million in the same quarter last year[20]. - Share-based compensation totaled $33.9 million for the quarter ended April 4, 2025, compared to $38.1 million in the previous quarter[28].

Group 1 - ON Semiconductor Corporation is set to release its first-quarter earnings results on May 5, with analysts expecting earnings of 50 cents per share, a decrease from $1.08 per share in the same period last year [1] - The projected quarterly revenue for ON Semiconductor is $1.4 billion, down from $1.86 billion a year earlier [1] - ON Semiconductor has ceased its acquisition efforts for Allegro MicroSystems, withdrawing its cash proposal of $35.10 per share due to the lack of an actionable path forward [2] Group 2 - ON Semiconductor shares increased by 5.8%, closing at $41.91 on the last trading day [2] - Analysts have provided various ratings and price target adjustments for ON Semiconductor, with Stifel lowering its target from $52 to $42, Citigroup from $52 to $40, Keybanc from $60 to $55, Mizuho from $71 to $62, and Needham maintaining a target of $57 [8]

On Semiconductor (ON) is slated to release its first-quarter 2025 results on May 5.For first-quarter 2025, ON expects revenues between $1.35 billion and $1.45 billion. Earnings are expected to be in the range of 45-55 cents per share.The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 51 cents per share, unchanged in the past 30 days. This indicates a decline of 52.78% from the figure reported in the year-ago quarter.The consensus mark for revenues is pegged at $1.41 billion, suggestin ...

Analysts on Wall Street project that ON Semiconductor Corp. (ON) will announce quarterly earnings of $0.51 per share in its forthcoming report, representing a decline of 52.8% year over year. Revenues are projected to reach $1.41 billion, declining 24.6% from the same quarter last year.Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.Be ...