Companies /Technology

ON Semiconductor Corp

NASDAQ: ON Semiconductors
$70.02
▲ $0.04 (+0.05%) today
Markets open · 10:39am ET

Q1 2025 Earnings

Reported May 5, 2025, 8:05am ET · SEC source
$0.55
Beat +9.58%
EPS · est. $0.50
$1.4B
Beat +3.13%
Revenue · est. $1.4B
+23.7%
Beating market
ON vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0May 5May 6report 8:05am ETearnings−0.6%−10.5%
−10%−5%0May 5May 6earnings−0.6%−10.5%
ON −10.5%S&P 500 −0.6%
−10%−5%0May 5May 6report 8:05am ETearnings−0.6%−10.5%
−10%−5%0May 5May 6earnings−0.6%−10.5%
ON −10.5%NASDAQ −0.6%
−12%−6%0+6%May 5May 13report 8:05am ETearnings+4.0%+7.9%
−12%−6%0+6%May 5May 13earnings+4.0%+7.9%
ON +7.9%S&P 500 +4.0%
−12%−6%0+6%May 5May 13report 8:05am ETearnings+5.7%+7.9%
−12%−6%0+6%May 5May 13earnings+5.7%+7.9%
ON +7.9%NASDAQ +5.7%
−8.35%
Day of report
+0.26%
Next session
+16.17%
One week
+28.98%
30 days

S&P 500 over the same 30 days: +5.24%.

Did ON Beat Earnings? Q1 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$600.0M$1.2B$1.8B$1.9B$1.4BRevenue$853.6M$293.8MGross Profit
$0$600.0M$1.2B$1.8BRevenueGross Profit

ON Revenue by Segment

Power Solutions Group$645.1M−26.0%
Analog and Mixed-Signal Group$566.4M−19.0%
Intelligent Sensing Group$234.2M−20.0%

Figures from SEC filings and company reports. Not investment advice.