onsemi Reports Fourth Quarter and Full Year 2025 Results

Core Viewpoint - onsemi reported its fourth quarter and fiscal year 2025 results, highlighting a disciplined execution and a focus on intelligent power and sensing technologies to drive long-term shareholder returns [2][3]. Financial Performance - Fourth quarter revenue was $1,530.1 million, a decrease of 1% sequentially and 11% year-over-year [4][10]. - GAAP gross margin for Q4 2025 was 36.0%, down from 37.9% in Q3 2025 and 45.2% in Q4 2024 [4][6]. - GAAP operating margin was 13.1%, compared to 17.0% in Q3 2025 and 23.7% in Q4 2024 [4][6]. - Net income attributable to onsemi was $181.8 million, down from $255.0 million in Q3 2025 and $379.9 million in Q4 2024 [4][6]. - Diluted earnings per share (EPS) for Q4 2025 was $0.45, compared to $0.63 in Q3 2025 and $0.88 in Q4 2024 [4][6]. Annual Results - For the fiscal year 2025, total revenue was $5,995.4 million, a decline of 15% from $7,082.3 million in 2024 [8][10]. - The gross margin for 2025 was 33.1%, down from 45.4% in 2024 [8][10]. - Operating margin for 2025 was 1.4%, compared to 25.0% in 2024 [8][10]. - Net income attributable to onsemi for 2025 was $121.0 million, significantly lower than $1,572.8 million in 2024 [8][10]. - Diluted EPS for 2025 was $0.29, down from $3.63 in 2024 [8][10]. Cash Flow and Shareholder Returns - The company generated $1.4 billion in free cash flow in 2025, returning 100% of this amount to shareholders through share repurchases [2][6]. - Cash from operations for 2025 was $1.8 billion, achieving a record high free cash flow margin of 24% [6][8]. Strategic Initiatives - onsemi announced a new share repurchase program of up to $6 billion over the next three years [7]. - The company introduced vertical gallium nitride (vGaN) power semiconductors, aiming to set new benchmarks in power density and efficiency [7]. - A memorandum of understanding was signed with Innoscience to explore expanding production of gallium nitride (GaN) power devices [7]. - A collaboration agreement was established with GlobalFoundries to develop next-generation GaN power devices [7].