ON Semiconductor Corp. (NASDAQ: ON) reported its fiscal second-quarter 2025 results on Monday.
The stock dropped after the company reported a quarterly revenue 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 line with the analyst consensus estimate.
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Revenue from Power Solutions Group (PSG) declined 16% Y/Y to $698.2 million, Analog and Mixed-Signal Group (AMG) decreased 14% Y/Y to $555.9 million, and Intelligent Sensing Group (ISG) fell 15% Y/Y to $214.6 million.
The adjusted gross margin declined by 770 bps to 37.6%, while the adjusted operating margin decreased by 1,020 bps to 17.3%, implying semiconductor industry pricing pressures.
Onsemi generated $106.1 million in free cash flow and held $2.83 billion in cash and equivalents as of June 30, 2025.
Onsemi CEO Hassane El-Khoury said he noted early signs of stabilization in key end markets and emphasized that Onsemi is well-positioned to capitalize on a market recovery. As the company executes its near-term priorities, it continues investing in next-generation technologies to drive future growth and strengthen its market leadership, he added.
In a strategic development, Onsemi announced that select Xiaomi (OTC:XIACY) YU7 electric SUV models now feature its advanced 800V drive platform powered by the company's EliteSiC M3e technology.
By integrating this high-efficiency silicon carbide platform into the vehicle's traction inverter, Xiaomi benefits from enhanced performance, greater power density, and longer driving range, all while lowering system costs and enabling smaller, lighter, and more durable traction systems.
Simon Keeton, group president of the Power Solutions Group at Onsemi, noted that EliteSiC's industry-leading efficiency, power density, and thermal performance are redefining what's possible in next-generation electric vehicles, positioning Onsemi at the forefront of EV innovation as the shift to electrification accelerates.
Outlook
Onsemi expects third-quarter adjusted revenue of $1.465 billion-$1.565 billion, compared to the analyst consensus estimate of $1.490 billion.
The company expects quarterly adjusted EPS of 54 cents to 64 cents (compared to the analyst consensus estimate of 58 cents) and an adjusted gross margin of 36.5%-38.5%.
Price Action: ON stock is trading lower by 7.69% to $52.47 at last check Monday.
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