Tower Semiconductor reported strong financial results for the second quarter ended June 30, 2025, with revenues reaching $372 million. This represents a 6% year-over-year revenue growth and a 4% quarter-over-quarter increase. Gross profit for the quarter was $80 million, an increase from $73 million in the first quarter of 2025. Net profit for Q2 2025 was $47 million, translating to $0.42 basic and $0.41 diluted earnings per share, up from $40 million and $0.36 EPS in Q1 2025.
Cash flow generated from operating activities in the second quarter of 2025 was $123 million, demonstrating robust operational performance. Investments in property and equipment, net, amounted to $111 million during the quarter, indicating continued capital expenditure to support growth. These figures highlight the company's ability to generate cash while investing in its future capabilities.
The company provided optimistic guidance for the third quarter of 2025, projecting revenues of $395 million, with a potential range of plus or minus 5%. This guidance reflects an anticipated 7% year-over-year and 6% quarter-over-quarter revenue increase. Furthermore, Tower Semiconductor targets an additional $40 million revenue increase for the fourth quarter of 2025 over Q3, signaling an acceleration in growth.
Russell Ellwanger, CEO of Tower Semiconductor, emphasized the strong momentum in the RF infrastructure business, driven by data centers and AI expansions, with customer forecasts continuing to increase. He stated that strategic initiatives, backed by the repurposing of multiple factories towards higher capacity for RF infrastructure, are well underway and will contribute more strongly to expected growth in subsequent quarters. The company is well-positioned to benefit in this market, evidenced by its number one market share position.
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