Corning(US:GLW)2026-01-28 12:05Financial Performance - Q4 2025 core sales reached $4.41 billion, a 14% increase year-over-year, while core EPS grew 26% to $0.72[3] - Full-year 2025 core sales totaled $16.41 billion, up 13% from the previous year, with core EPS increasing 29% to $2.52[3] - Management expects Q1 2026 core sales to grow approximately 15% to a range of $4.2 billion to $4.3 billion, with core EPS projected between $0.66 and $0.70[4] - The company's full-year 2025 net income attributable to Corning Incorporated was $1,596 million, up 215.4% from $506 million in 2024[30] - Net income for Q4 2025 was $587 million, a 72.6% increase from $340 million in Q4 2024[33] - Core net income for Q4 2025 reached $624 million, up 25.6% from $497 million in Q4 2024[35] - Basic earnings per share for Q4 2025 was $0.63, compared to $0.36 in Q4 2024, reflecting a 75% increase[34] - Diluted earnings per share for Q4 2025 was $0.62, up from $0.36 in Q4 2024, marking a 72.2% increase[34] Cash Flow and Expenditures - Adjusted free cash flow nearly doubled to $1.72 billion for full-year 2025 compared to full-year 2023[3] - Net cash provided by operating activities for the year ended December 31, 2025, was $2,695 million, a 39% increase from $1,939 million in 2024[33] - Capital expenditures for Q4 2025 totaled $432 million, compared to $254 million in Q4 2024, indicating a 70% increase[33] - Capital expenditures for the year ended December 31, 2025 totaled $1,282 million, compared to $965 million in 2024, marking a 33% rise[56] Margins and Returns - Core operating margin expanded by 390 basis points to 20.2%, and core ROIC increased by 540 basis points to 14.2%[4] - Gross margin for Q4 2025 was $1,495 million, representing a 24.9% increase compared to $1,197 million in Q4 2024[30] - For the three months ended December 31, 2025, the gross margin was $1,495 million, representing a margin percentage of 35.5%[52] - The core performance measures for the same period indicated a gross margin of $1,682 million, with a margin percentage of 38.1%[52] - For the year ended December 31, 2025, the gross margin reported was $5,621 million, with a margin percentage of 36.0%[54] - The core performance measures for 2025 indicated a gross margin of $6,293 million, with a margin percentage of 38.4%[54] - Core operating income for Q4 2025 was $891 million, an increase of 24% from $717 million in Q4 2024[57] - Core return on invested capital (ROIC) improved to 14.2% in Q4 2025, compared to 12.7% in Q4 2024[57] Assets and Liabilities - Total assets increased to $30,976 million in 2025, compared to $27,735 million in 2024, reflecting a growth of 8.1%[31] - Current liabilities rose to $5,628 million in 2025, up from $4,919 million in 2024, indicating a 14.4% increase[31] - Long-term debt increased to $7,630 million in 2025 from $6,885 million in 2024, a rise of 10.8%[31] - Corning's cash and cash equivalents decreased to $1,526 million in 2025 from $1,768 million in 2024, a decline of 13.7%[31] - Total equity as of December 31, 2025 was $12,307 million, up from $11,070 million in 2024, indicating a 11.2% increase[57] Strategic Initiatives - The upgraded Springboard plan now anticipates an additional $11 billion in incremental annualized sales by the end of 2028, up from the original $8 billion target[4] - Corning entered a multiyear agreement with Meta worth up to $6 billion to develop technologies for next-generation data centers[7] - Corning emphasizes its commitment to R&D, with sustained investments aimed at developing innovative products across various markets[28] Tax and Currency Adjustments - The effective tax rate for Q4 2025 was 13.4%, compared to 18.1% for core performance measures[42] - The company reported a constant-currency adjustment of $197 million for Q4 2025, contributing positively to net sales[42] - The company plans to continue utilizing constant-currency reporting to mitigate the impact of foreign exchange fluctuations on financial results[39] - The company updated its constant-currency rates effective January 1, 2025, impacting future revenue reporting[58] - The constant-currency adjustment for Q4 2025 primarily relates to Japanese yen exposure, reflecting management's strategy to mitigate currency volatility[58] Historical Comparisons - For the year ended December 31, 2025, net sales under GAAP were $15,629 million, with a net income of $1,596 million and an effective tax rate of 15.1%[47] - The core performance measures for 2025 indicated net sales of $16,408 million, net income of $2,199 million, and an effective tax rate of 19.1%[47] - In 2024, net sales reported under GAAP were $13,118 million, with a net income of $506 million and an effective tax rate of 27.2%[49] - The core performance measures for 2024 showed net sales of $14,469 million, net income of $1,699 million, and an effective tax rate of 20.3%[49] - For the three months ended December 31, 2024, net sales reported under GAAP were $3,501 million, with a net income of $310 million and an effective tax rate of 22.2%[44] - The core performance measures for the same period showed net sales of $3,874 million, net income of $497 million, and an effective tax rate of 20.1%[44] - The company reported a loss of $14 million related to the sale of a business for the year ended December 31, 2024[59]