Wide-bandgap roadmap updates, including plans to sample more than 30 new GaN devices in 2026 across 40 to 1,200 volts , as well as a new foundry partnership to broaden supply options for lateral GaN (with revenue beginning in 2026). Management also said it expects first V-GaN revenue in 2027 .Automotive efforts tied to the industry’s shift to zonal architecture , including an automotive zonal design funnel that management said has already exceeded $400 million for products such as SmartFETs, eFuses, and 10B ...

Financial Data and Key Metrics Changes - In 2025, the company delivered $6 billion in revenue with a non-GAAP gross margin of 38.4%, reflecting disciplined execution and alignment with long-term strategy [7] - Free cash flow increased 17% year-over-year to $1.4 billion, achieving a record free cash flow margin of 24% [17][24] - For Q4, revenue was $1.53 billion, with a non-GAAP gross margin of 38.2% and earnings per share of $0.64, exceeding the midpoint of guidance [10][23] Business Line Data and Key Metrics Changes - Automotive revenue was $798 million, up approximately 1% quarter-over-quarter, indicating stabilization in the automotive market [21] - Industrial revenue was $442 million, up approximately 4% quarter-over-quarter, marking the first quarter of year-over-year growth in industrial revenue after eight quarters of declines [21] - AI data center revenue contributed more than $250 million for the full year, with growth in Q4 [12][21] Market Data and Key Metrics Changes - The aerospace, defense, and security segment saw a 70% year-over-year revenue increase, driven by North America and Europe [12] - The company is experiencing improving order trends across core markets, contributing to a positive outlook for 2026 [10][27] Company Strategy and Development Direction - The company has evolved from a manufacturing-centric to a product-centric model, focusing on high-margin product revenue and strategic investments in technology [8] - The introduction of the Treo Platform and expansion into high-growth markets like AI data centers and automotive zonal architecture are key strategic initiatives [7][11] - The company aims to achieve margin expansion through operational efficiency and a refined product mix, with a focus on differentiated products [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand conditions across automotive, industrial, and AI infrastructure markets [15][27] - The company anticipates that the groundwork laid over the past years will enable it to benefit from improving demand conditions [15] - Management highlighted the importance of aligning manufacturing capabilities with market demands to enhance gross margins [19][88] Other Important Information - The company announced a new $6 billion share repurchase program after returning approximately 100% of free cash flow to shareholders in 2025 [18][24] - The company is reducing fab capacity by 12% to improve operational efficiency, which is expected to lower depreciation costs in 2026 [19] Q&A Session Summary Question: What was going on in the other category? - Management noted that excluding exits, the company is above seasonal trends, and the decline in the other category was due to normal seasonality and $40 million in exits [30] Question: Can you discuss the AI data center market and its potential? - Management expressed confidence in the growth of the AI data center segment, highlighting the company's unique capabilities in high-voltage power supply and its broad product portfolio [32][33] Question: What is the expected run rate for non-core exits? - Management clarified that the $50 million exit in Q1 is part of a larger $300 million total for the year, with varying quarterly impacts [37] Question: How do you expect gross margins to progress? - Management indicated that gross margins are expected to improve due to increased utilization and ongoing FabRight initiatives, with a target of reaching low 40s% in the long term [88][90] Question: What is the outlook for the automotive market? - Management expects automotive revenue to be roughly flat in Q1 due to seasonal factors, but overall stabilization is anticipated [50]

ON Semiconductor (NasdaqGS:ON) Q4 2025 Earnings call February 09, 2026 05:00 PM ET Company ParticipantsBlayne Curtis - Managing DirectorChris Caso - Managing DirectorGary Mobley - Managing DirectorHarsh Kumar - Managing DirectorHassane El-Khoury - President and CEOJoe Moore - Managing DirectorJoshua Buchalter - Managing DirectorParag Agarwal - VP of Investor Relations and Corporate DevelopmentQuinn Bolton - Managing DirectorRoss Seymore - Managing DirectorThad Trent - CFOVijay Rakesh - Managing DirectorVive ...

Quarterly Investor Presentation Content to the Left of this line Content Below this line Content Fourth Quarter 2025 1 © onsemi 2026 | Confidential | © onsemi 2026 | Public Information Content to the Right of this line Content to the Left of this line Content to the Right of this line Above this line Content Below this line Content Above this line Color Swatches Safe Harbor Statement and Non-GAAP and Forecast Information This presentation includes "forward-looking statements," as that term is defined in Sec ...