ON Semiconductor Corp. (NASDAQ: ON) reported its fiscal second-quarter 2025 outcomes on Monday.
The inventory dropped after the corporate reported a quarterly income decline of 15.36% year-on-year (Y/Y) to $1.47 billion, topping the analyst consensus estimate of $1.45 billion.
The adjusted EPS of 53 cents is in keeping with the analyst consensus estimate.
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Income from Energy Options Group (PSG) declined 16% Y/Y to $698.2 million, Analog and Combined-Sign Group (AMG) decreased 14% Y/Y to $555.9 million, and Clever Sensing Group (ISG) fell 15% Y/Y to $214.6 million.
The adjusted gross margin declined by 770 bps to 37.6%, whereas the adjusted working margin decreased by 1,020 bps to 17.3%, implying semiconductor {industry} pricing pressures.
Onsemi generated $106.1 million in free money circulation and held $2.83 billion in money and equivalents as of June 30, 2025.
Onsemi CEO Hassane El-Khoury stated he famous early indicators of stabilization in key finish markets and emphasised that Onsemi is well-positioned to capitalize on a market restoration. As the corporate executes its near-term priorities, it continues investing in next-generation applied sciences to drive future progress and strengthen its market management, he added.
In a strategic growth, Onsemi introduced that choose Xiaomi (OTC:XIACY) YU7 electrical SUV fashions now function its superior 800V drive platform powered by the corporate’s EliteSiC M3e know-how.
By integrating this high-efficiency silicon carbide platform into the car’s traction inverter, Xiaomi advantages from enhanced efficiency, better energy density, and longer driving vary, all whereas decreasing system prices and enabling smaller, lighter, and extra sturdy traction programs.
Simon Keeton, group president of the Energy Options Group at Onsemi, famous that EliteSiC’s industry-leading effectivity, energy density, and thermal efficiency are redefining what’s attainable in next-generation electrical autos, positioning Onsemi on the forefront of EV innovation because the shift to electrification accelerates.
Onsemi expects third-quarter adjusted income of $1.465 billion-$1.565 billion, in comparison with the analyst consensus estimate of $1.490 billion.
The corporate expects quarterly adjusted EPS of 54 cents to 64 cents (in comparison with the analyst consensus estimate of 58 cents) and an adjusted gross margin of 36.5%-38.5%.
Value Motion: ON inventory is buying and selling decrease by 7.69% to $52.47 at final verify Monday.
