ON Semiconductor ON reported first-quarter 2025 non-GAAP earnings of 55 cents per share, which outpaced the Zacks Consensus Estimate by 7.8% but declined 49.1% year over year.

Revenues of $1.45 billion missed the Zacks Consensus Estimate by 2.9% and declined 22.4% on a year-over-year basis. 

In terms of end markets, Automotive (52.7% of revenues) revenues were $761.9 million, down 25.1% year over year. Industrial (27.7% of revenues) end-market (including military, aerospace, and medical) revenues declined 16% year over year to $400 million. Others (19.6% of revenues) end-market revenues declined 23.2% year over year to $283.8 million. 

ON Semiconductor Corporation Price, Consensus and EPS Surprise

ON’s Quarter Details

Power Solutions Group revenues of $645.1 million (contributed 44.6% to revenues) fell 26.2% year over year. Analog & Mixed Group revenues of $566.4 million (39.2% of revenues) declined 18.7% on a year-over-year basis. Intelligent Sensing Group revenues of $234.2 million (16.2% of revenues) fell 19.7% year over year. 

Non-GAAP gross margin contracted 590 basis points (bps) year over year to 40%. 

Non-GAAP operating expenses increased 0.1% year over year to $314.5 million. As a percentage of revenues, operating expenses increased 490 bps year over year.

Non-GAAP operating margin was 18.3% compared with 29% reported in the year-ago quarter.

ON’s Balance Sheet & Cash Flow

As of April 4, 2025, ON had cash and cash equivalents of $3.01 billion compared with $2.69 billion as of Dec. 31, 2024. 

Total debt (including the current portion), as of April 4, 2025, was $3.35 billion, unchanged sequentially.

First-quarter 2025 cash flow from operations amounted to $602.3 million compared with the previous quarter’s reported figure of $579.7 million.

Free cash flow amounted to $454.7 million compared with free cash flow of $264.8 million in the previous quarter. 

ON Offers Q2 Guidance

For the second quarter of 2025, onsemi expects revenues between $1.40 billion and $1.50 billion.

Non-GAAP gross margin is projected to be in the range of 36.5-38.5%. 

Non-GAAP operating expenses are expected to be in the range of $285-$300 million.

Non-GAAP earnings are envisioned between 48 cents per share and 58 cents per share. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

ON’s Zacks Rank & Stocks to Consider

ON Semiconductor currently has a Zacks Rank #4 (Sell).

Affirm AFRM, Compass COMP and StoneCo STNE are some better-ranked stocks in the broader Zacks Computer & Technology sector. While Affirm and StoneCo sport a Zacks Rank #1 (Strong Buy) each, Compass carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Affirm, Compass and StoneCo are scheduled to report their respective first-quarter 2025 results on May 8.

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