ON Semiconductor Corporation ( (ON) ) has released its Q1 earnings. Here is a breakdown of the information ON Semiconductor Corporation presented to its investors.
ON Semiconductor Corporation, known as onsemi, is a leading provider of intelligent power and sensing technologies, primarily serving the automotive and industrial sectors. The company is recognized for its innovative solutions that address complex challenges in vehicle electrification, sustainable energy, and industrial automation.
In its first quarter of 2025 earnings report, onsemi reported a revenue of $1,445.7 million, reflecting a decline from previous quarters. Despite the downturn, the company emphasized its disciplined approach to managing costs and optimizing its manufacturing footprint, which contributed to a significant increase in free cash flow.
Key financial metrics for the quarter included a GAAP gross margin of 20.3% and a non-GAAP gross margin of 40.0%. The company reported a GAAP operating margin of -39.7% and a non-GAAP operating margin of 18.3%. On a per-share basis, onsemi posted a GAAP loss of $1.15 and a non-GAAP earnings of $0.55. The company’s cash from operations reached $602 million, with free cash flow rising by 72% year-over-year to $455 million.
Looking ahead, onsemi remains focused on long-term value creation, with plans to accelerate capital returns to shareholders and invest in future growth. The company continues to secure key design wins across major global customers, driven by the strong performance of its product portfolio.
Overall, onsemi’s management maintains a positive outlook, projecting revenue between $1,400 and $1,500 million for the second quarter of 2025, along with a non-GAAP gross margin of 36.5% to 38.5%. The company is committed to navigating the current market challenges while positioning itself for future opportunities.