ON Semiconductor announced its first quarter 2025 results on May 5, 2025, reporting revenue of $1,445.7 million. This represents a significant decrease of approximately 22% compared to $1.86 billion in the first quarter of 2024.
The company posted a GAAP net loss attributable to ON Semiconductor Corporation of $486.1 million, or $1.15 per diluted share. This loss was primarily driven by substantial restructuring, asset impairments, and other charges totaling $539.3 million, alongside $237.7 million in excess and obsolete inventory charges.
Despite the GAAP loss, non-GAAP diluted earnings per share was $0.55, exceeding guidance midpoints. ON Semiconductor generated strong free cash flow of $455 million, representing 31% of revenue, and increased its share repurchase target to 100% of free cash flow for 2025. However, the company's guidance for Q2 2025 anticipates revenue between $1.4 billion and $1.5 billion, with non-GAAP gross margin expected to decline sequentially to 36.5% to 38.5% due to increased non-cash under-absorption charges.
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