ON Semiconductor (ON) Q1 2025 Earnings
How Did ON Stock React to Q1 2025 Earnings?
S&P 500 over the same 30 days: +5.24%.
Did ON Beat Earnings? Q1 2025 Results
Yes. ON Semiconductor reported Q1 2025 earnings of $0.55 a share on May 5, 2025, beating the $0.50 consensus estimate by 9.6%. Revenue was $1.4B against a $1.4B estimate.
ON Semiconductor navigated a bruising cyclical downturn with better-than-feared results in Q1 2025, posting non-GAAP EPS of $0.55 against a consensus estimate of $0.50, a beat of 9.58%, while revenue of $1.45 billion topped the $1.40 billion analyst forecast by 3.13%, even as sales fell 22.4% year-over-year. The headline numbers masked significant GAAP charges, with $539.30 million in restructuring and asset impairment costs helping push GAAP gross margin to just 20.3%, though non-GAAP gross margin held at 40.0%, reflecting the company's disciplined cost management through the downturn. A genuine standout was free cash flow of $454.70 million, representing 31% of revenue and rising 72% year-over-year, with the company returning $300.10 million to shareholders via buybacks. Despite the earnings beat, shares fell sharply in pre-market trading, underscoring investor unease over a 26% sequential drop in automotive revenue. Looking ahead, onsemi guided Q2 revenue of $1.40 billion to $1.50 billion, with non-GAAP EPS of $0.48 to $0.58, signaling relatively stable sequential performance.
- Disciplined cost structure management through industry downturn
- Manufacturing footprint right-sizing
- Portfolio rationalization
- Strong design win momentum across all end-markets
- Free cash flow increased 72% year-over-year to 31% of revenue
“Our results in the first quarter reflect the disciplined approach we have maintained through this downturn – managing our cost structure, right-sizing our manufacturing footprint, and rationalizing our portfolio – enabling us to generate increased free cash flow. We are committed to long-term value creation and we are accelerating our capital return to shareholders while investing in our future growth.”
ON Semiconductor CEO, on the earnings call
What Was ON Semiconductor's Outlook in Q1 2025?
For Q2 2025, onsemi expects revenue of $1,400 million to $1,500 million, GAAP gross margin of 36.4% to 38.4%, non-GAAP gross margin of 36.5% to 38.5%, GAAP diluted EPS of $0.45 to $0.55, non-GAAP diluted EPS of $0.48 to $0.58, GAAP operating expenses of $300 million to $315 million, and non-GAAP operating expenses of $285 million to $300 million. Diluted shares outstanding are expected to be approximately 419 million.
ON YoY Financials
| Metric | Q1 2025 | Q1 2024 | Year over year |
|---|---|---|---|
| Revenue | $1.4B | $1.9B | −22.4% |
| Gross Profit | $293.8M | $853.6M | −65.6% |
ON Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.