ON Semiconductor’s stock crashed over 15% on Monday, becoming the worst performer in the S&P 500, after its CEO warned clients to "order cautiously" and sales declines sparked panic.
Q2 earnings: Adjusted EPS of $0.53 matched expectations; revenue of $1.47 billion (-15% YoY) slightly beat forecasts. Q3 outlook: Adjusted EPS projected at $0.54–$0.64, revenue $1.465–$1.565 billion.
Q2 revenue rose 2% QoQ to $1.47 billion; gross margin dropped 240 bps to 37.6%; operating margin fell 90 bps to 17.3%; diluted EPS stood at $0.53. By segment: Automotive revenue $733 million (+4% QoQ); Industrial $406 million (+2% QoQ); "Other" $329 million (+16% QoQ). Long-term free cash flow margin was 20.1% (-90 bps QoQ).
All sub-groups saw YoY revenue declines: PSG -16%, AMG -14%, ISG -15%, reflecting industry pricing pressures.
Q2 highlights: China SiC revenue doubled; Treo product shipments exceeded 5 million units; 107% of free cash flow returned to shareholders YTD.
The CEO noted stabilizing end markets but uncertainty in automotive, with cautious client orders. The company targets a $44 billion market, aiming for 35–40% SiC share; Treo platform gross margin hits 70%. ON Semiconductor’s stock is down over 20% in 2025.
ICgoodFind: ON Semiconductor’s plunge reflects industry volatility, with future performance to watch.
