NXP(US:NXPI)2025-10-28 10:41Financial Performance - NXP reported quarterly revenue of $3.17 billion, down 2% year-on-year, but up 8% from the previous quarter[3][4]. - NXP Semiconductors reported Q3 2025 revenue of $3.173 billion, a 8.4% increase from $2.926 billion in Q2 2025 but a decrease of 2.4% from $3.250 billion in Q3 2024[22]. - Non-GAAP diluted net income per share for Q3 2025 was $3.11, down 10% year-on-year[3][4]. - Net income attributable to stockholders for Q3 2025 was $631 million, compared to $445 million in Q2 2025 and $718 million in Q3 2024, with diluted earnings per share of $2.48[22]. - NXP's diluted GAAP net income per share was $2.48, down from $2.79 in the same quarter of the previous year, representing a decrease of 11.1%[26]. - NXP Semiconductors reported a net income of $646 million for the three months ended September 28, 2025, compared to $729 million for the same period in 2024, reflecting a decrease of 11.4%[24]. Margins and Profitability - GAAP gross margin was 56.3%, while non-GAAP gross margin was 57.0%[3][4]. - Gross profit for Q3 2025 was $1.787 billion, up from $1.562 billion in Q2 2025 but down from $1.866 billion in Q3 2024, resulting in a gross margin of 56.2%[22]. - The company's GAAP gross profit for the same period was $1,787 million, with a GAAP gross margin of 56.3%, compared to $1,866 million and 57.4% in the prior year[25]. - Non-GAAP gross profit increased to $1,810 million, with a non-GAAP gross margin of 57.0%, compared to $1,892 million and 58.2% in the same quarter last year[25]. - The adjusted EBITDA (Non-GAAP) for the latest quarter was $1,232 million, up from $1,103 million in the previous quarter, representing an increase of about 11.7%[30]. - The trailing twelve-month adjusted EBITDA (Non-GAAP) was $4,648 million, a decrease from $5,235 million year-over-year, reflecting a decline of approximately 11.2%[30]. Cash Flow and Investments - Cash flow from operations was $585 million, resulting in non-GAAP free cash flow of $509 million, with capital return of $310 million[3][4]. - Operating cash flow for the quarter was $585 million, down from $779 million in the previous quarter, indicating a decline of 25%[24]. - Non-GAAP free cash flow for the three months ended September 28, 2025, was $509 million, a decrease from $593 million in the same quarter of 2024, indicating a decline of approximately 14.2%[31]. - The trailing twelve-month non-GAAP free cash flow was $1,924 million, down from $2,759 million year-over-year, which is a decrease of about 30.3%[31]. - The trailing twelve-month non-GAAP free cash flow as a percentage of revenue was 16% for the latest quarter, compared to 21% in the same period last year[31]. - The company incurred $76 million in net capital expenditures on property, plant, and equipment for the latest quarter, down from $186 million in the same quarter of 2024[31]. Assets and Liabilities - Total current assets increased to $8.509 billion as of September 28, 2025, up from $7.686 billion in Q2 2025 and $7.026 billion in Q3 2024[23]. - Cash and cash equivalents rose to $3.454 billion, compared to $3.170 billion in Q2 2025 and $2.748 billion in Q3 2024[23]. - Total liabilities increased to $15.927 billion as of September 28, 2025, up from $15.314 billion in Q2 2025 and $13.925 billion in Q3 2024[23]. Strategic Moves - NXP announced the sale of its MEMS sensors business line for up to $950 million, expected to close in the first half of 2026[3][4]. - The company closed the acquisition of Aviva Links for $243 million, enhancing its automotive networking solutions[3][4]. - The company has received all regulatory approvals for the acquisition of Kinara, focusing on high-performance neural processing units[3][4]. Future Outlook - Guidance for Q4 2025 projects total revenue between $3.2 billion and $3.4 billion, reflecting a year-on-year growth of 3% to 9%[8][10]. - NXP's forward-looking statements highlight potential risks including market demand fluctuations and global trade disputes, which could impact future performance[19]. - The company is focused on developing innovative solutions in automotive, industrial & IoT, mobile, and communications infrastructure markets[18]. - NXP plans to host a conference call on October 28, 2025, to discuss Q3 2025 results in detail[17]. Operational Metrics - NXP's cash conversion cycle increased to 134 days, compared to 119 days in Q3 2024[5][4]. - Financial expenses increased to $98 million in the latest quarter from $82 million in the same quarter of 2024, marking a rise of about 19.5%[30]. - The provision for income taxes was $148 million for the latest quarter, compared to $173 million in the same quarter of 2024, indicating a decrease of approximately 14.5%[30]. - Share-based compensation remained relatively stable at $118 million for the latest quarter, compared to $115 million in the same quarter of 2024[30].