ON Semiconductor

ON Q1 2025 Earnings

Reported May 5, 2025 at 8:05 AM ET · SEC Source

Q1 25 EPS

$0.55

BEAT +9.58%

Est. $0.50

Q1 25 Revenue

$1.45B

BEAT +3.13%

Est. $1.40B

vs S&P Since Q1 25

+139.0%

BEATING MARKET

ON +168.0% vs S&P +29.0%

Market Reaction

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 … Read more 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
24/7 Wall St

ON YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

24/7 Wall St

ON Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“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.”

— Hassane El-Khoury, Q1 2025 Earnings Press Release