Tower Semiconductor Reports 2025 Second Quarter Financial Results
Tower Semiconductor (NASDAQ/TASE: TSEM) reported strong Q2 2025 financial results with revenues of $372 million, showing 6% year-over-year and 4% quarter-over-quarter growth. The company achieved a net profit of $47 million, or $0.41 diluted EPS, up from $40 million in Q1 2025.
Operating cash flow reached $123 million in Q2, with $111 million invested in property and equipment. The company provided optimistic guidance for Q3 2025, projecting revenues of $395 million (±5%), representing a 7% year-over-year and 6% quarter-over-quarter increase.
Tower's growth is particularly strong in RF infrastructure, driven by data centers and AI expansions, where it maintains a leading market position. Management expects an additional $40 million revenue increase targeted for Q4 2025.
Tower Semiconductor (NASDAQ/TASE: TSEM) ha comunicato solidi risultati finanziari per il secondo trimestre 2025, con ricavi pari a 372 milioni di dollari, registrando una crescita del 6% su base annua e del 4% rispetto al trimestre precedente. L'azienda ha ottenuto un utile netto di 47 milioni di dollari, ovvero 0,41 dollari per azione diluita, in aumento rispetto ai 40 milioni del primo trimestre 2025.
Il flusso di cassa operativo ha raggiunto i 123 milioni di dollari nel secondo trimestre, con 111 milioni di dollari investiti in immobili e attrezzature. La società ha fornito una previsione ottimistica per il terzo trimestre 2025, stimando ricavi di 395 milioni di dollari (±5%), che rappresentano un incremento del 7% su base annua e del 6% rispetto al trimestre precedente.
La crescita di Tower è particolarmente robusta nel settore delle infrastrutture RF, trainata dall'espansione dei data center e dell'intelligenza artificiale, dove mantiene una posizione di leadership nel mercato. La direzione prevede un ulteriore aumento dei ricavi di 40 milioni di dollari previsto per il quarto trimestre 2025.
Tower Semiconductor (NASDAQ/TASE: TSEM) reportó sólidos resultados financieros en el segundo trimestre de 2025, con ingresos de 372 millones de dólares, mostrando un crecimiento del 6% interanual y del 4% respecto al trimestre anterior. La compañía alcanzó un beneficio neto de 47 millones de dólares, o 0,41 dólares por acción diluida, superior a los 40 millones del primer trimestre de 2025.
El flujo de caja operativo llegó a 123 millones de dólares en el segundo trimestre, con 111 millones de dólares invertidos en propiedades y equipos. La empresa ofreció una guía optimista para el tercer trimestre de 2025, proyectando ingresos de 395 millones de dólares (±5%), lo que representa un aumento del 7% interanual y del 6% trimestral.
El crecimiento de Tower es especialmente fuerte en infraestructura RF, impulsado por centros de datos y expansiones en IA, donde mantiene una posición líder en el mercado. La dirección espera un aumento adicional de ingresos de 40 millones de dólares para el cuarto trimestre de 2025.
Tower Semiconductor (NASDAQ/TASE: TSEM)는 2025년 2분기 강력한 재무 실적을 발표했습니다. 매출은 3억 7,200만 달러로 전년 동기 대비 6%, 전분기 대비 4% 성장했습니다. 회사는 4,700만 달러의 순이익을 기록했으며, 희석주당순이익(EPS)은 0.41달러로 2025년 1분기의 4,000만 달러에서 증가했습니다.
영업 현금 흐름은 2분기에 1억 2,300만 달러에 달했으며, 1억 1,100만 달러가 부동산 및 장비에 투자되었습니다. 회사는 2025년 3분기에 대해 낙관적인 전망을 제시하며, 매출을 3억 9,500만 달러(±5%)로 예상했으며, 이는 전년 동기 대비 7%, 전분기 대비 6% 증가한 수치입니다.
Tower의 성장은 특히 데이터 센터 및 AI 확장에 힘입은 RF 인프라 부문에서 두드러지며, 시장에서 선도적인 위치를 유지하고 있습니다. 경영진은 2025년 4분기에 추가로 4,000만 달러의 매출 증가를 기대하고 있습니다.
Tower Semiconductor (NASDAQ/TASE : TSEM) a publié de solides résultats financiers pour le deuxième trimestre 2025, avec un chiffre d'affaires de 372 millions de dollars, affichant une croissance de 6 % en glissement annuel et de 4 % par rapport au trimestre précédent. La société a réalisé un bénéfice net de 47 millions de dollars, soit un BPA dilué de 0,41 dollar, en hausse par rapport aux 40 millions du premier trimestre 2025.
Le flux de trésorerie opérationnel a atteint 123 millions de dollars au deuxième trimestre, avec 111 millions de dollars investis dans les immobilisations corporelles. L'entreprise a donné des prévisions optimistes pour le troisième trimestre 2025, projetant un chiffre d'affaires de 395 millions de dollars (±5 %), soit une augmentation de 7 % en glissement annuel et de 6 % par rapport au trimestre précédent.
La croissance de Tower est particulièrement forte dans les infrastructures RF, portée par les centres de données et les expansions en IA, où elle conserve une position de leader sur le marché. La direction prévoit une augmentation supplémentaire des revenus de 40 millions de dollars pour le quatrième trimestre 2025.
Tower Semiconductor (NASDAQ/TASE: TSEM) meldete starke Finanzergebnisse für das zweite Quartal 2025 mit Umsätzen von 372 Millionen US-Dollar, was einem Wachstum von 6 % im Jahresvergleich und 4 % im Quartalsvergleich entspricht. Das Unternehmen erzielte einen Netto-Gewinn von 47 Millionen US-Dollar bzw. 0,41 US-Dollar verwässertes Ergebnis je Aktie, gegenüber 40 Millionen US-Dollar im ersten Quartal 2025.
Der operative Cashflow erreichte im zweiten Quartal 123 Millionen US-Dollar, wobei 111 Millionen US-Dollar in Sachanlagen investiert wurden. Das Unternehmen gab eine optimistische Prognose für das dritte Quartal 2025 ab und erwartet Umsätze von 395 Millionen US-Dollar (±5 %), was einem Anstieg von 7 % im Jahresvergleich und 6 % im Quartalsvergleich entspricht.
Das Wachstum von Tower ist besonders stark im Bereich der RF-Infrastruktur, angetrieben durch Rechenzentren und KI-Erweiterungen, wo es eine führende Marktposition innehat. Das Management erwartet für das vierte Quartal 2025 einen zusätzlichen Umsatzanstieg von 40 Millionen US-Dollar.
- Revenue growth of 6% YoY and 4% QoQ to $372 million
- Net profit increased to $47 million from $40 million in Q1 2025
- Strong operating cash flow of $123 million in Q2
- Projected Q3 revenue growth to $395 million (±5%)
- Leading market share position in RF infrastructure
- Additional $40 million revenue increase targeted for Q4 2025
- High capital expenditure with $111 million invested in property and equipment
- Gross profit margins remain challenged at 21.5% of revenue
Insights
Tower Semiconductor shows strong sequential growth with optimistic Q3 guidance, driven by RF infrastructure and AI-related demand.
Tower Semiconductor has delivered solid financial performance in Q2 2025, with
Profitability metrics show notable improvement, with gross profit increasing to
The company's strong cash flow position is noteworthy, with
The Q3 2025 guidance of
Tower's strategic focus on RF infrastructure tied to data centers and AI expansions appears well-timed. The company's claim of holding the number one market share position in this segment is significant as AI infrastructure buildout continues to drive semiconductor demand. The repurposing of factories toward RF infrastructure capacity indicates a deliberate pivot toward these high-growth segments.
This earnings report demonstrates Tower's ability to execute on its strategic initiatives while delivering consistent financial improvement, positioning the company to capitalize on semiconductor demand driven by AI and data center expansion.
Quarter-over-quarter and year-over-year revenue growth
Providing guidance for accelerated revenue growth in the third quarter
MIGDAL HAEMEK, Israel, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Tower Semiconductor (NASDAQ/TASE: TSEM) reports today its results for the second quarter ended June 30, 2025.
Second Quarter of 2025 Results Overview
Revenues for the second quarter of 2025 were
Gross profit for the second quarter of 2025 was
Net profit for the second quarter of 2025 was
Cash flow generated from operating activities in the second quarter of 2025 was
Business Outlook
The company guides revenues for the third quarter of 2025 to be
Russell Ellwanger, Chief Executive Officer of Tower Semiconductor, stated:
“We have reported strong financial results for the second quarter of 2025, demonstrating both quarter-over-quarter and year-over-year revenue growth. Our strategic initiatives, backed by the repurposing of multiple factories towards higher capacity for RF infrastructure, are well underway, and have contributed and will contribute more strongly in the following quarters to our expected growth. The momentum we have gained in our RF infrastructure business, driven by data centers and AI expansions, is particularly noteworthy, with customer forecasts continuing to increase. We are well poised to benefit in this market, as evidenced by our number one market share position.”
Ellwanger added: “As we look ahead, we are confident in our ability to continue this positive trajectory, with 2025 third-quarter revenue mid-range guidance set at
Teleconference and Webcast
Tower Semiconductor will host an investor conference call today, Monday, August 4, 2025, at 10:00 a.m. Eastern time (9:00 a.m. Central time, 8:00 a.m. Mountain time, 7:00 a.m. Pacific time and 5:00 p.m. Israel time) to discuss the Company’s financial results for the second quarter of 2025 and its business outlook.
The call will be webcast and available through the Investor Relations section of Tower Semiconductor’s website at ir.towersemi.com. The pre-registration form required for dial-in participation is accessible here. Upon completing the registration, participants will receive the dial-in details, a unique PIN, and a confirmation email with all necessary information. To access the webcast, click here. The teleconference will be available for replay for 90 days.
Non-GAAP Financial Measures
The Company presents its financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”). The financial information included in the tables below includes unaudited condensed financial data. Some of the financial information, which may be used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, which we may describe as adjusted financial measures and/or reconciled financial measures, are non-GAAP financial measures as defined in Regulation G and related reporting requirements promulgated by the Securities and Exchange Commission (the “SEC”) as they apply to our Company. These adjusted financial measures are calculated excluding the following: (i) amortization of acquired intangible assets as included in our costs and expenses, (ii) compensation expenses in respect of equity grants to directors, officers, and employees as included in our costs and expenses, (iii) merger contract termination fees received from Intel, net of associated cost and taxes following the previously announced Intel contract termination as included in net profit in 2023 and (iv) restructuring income, net, which includes income, net of cost and taxes associated with the reorganization and restructure of our operations in Japan including the cessation of operations of the Arai facility, which occurred during 2022, as included in net profit. These adjusted financial measures should be evaluated in conjunction with, and are not a substitute for, GAAP financial measures. The tables also present the GAAP financial measures, which are most comparable to the adjusted financial measures used and/or presented in this release, as well as a reconciliation between the adjusted financial measures and the comparable GAAP financial measures. As used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, as well as may be included and calculated in the tables herein, the term Earnings Before Interest Taxes, Depreciation and Amortization which we define as EBITDA consists of operating profit in accordance with GAAP, excluding (i) depreciation expenses, which include depreciation recorded in cost of revenues and in operating cost and expenses lines (e.g., research and development related equipment and/or fixed other assets depreciation), (ii) stock-based compensation expense, (iii) amortization of acquired intangible assets, (iv) merger contract termination fees received from Intel, net of associated cost following the previously announced Intel contract termination, as included in operating profit and (v) restructuring income, net in relation to the reorganization and restructure of our operations in Japan including the cessation of operations of the Arai facility, as included in operating profit. EBITDA is reconciled in the tables below and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company from GAAP operating profit. EBITDA and the adjusted financial information presented herein and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, are not a required GAAP financial measure and may not be comparable to a similarly titled measure employed by other companies. EBITDA and the adjusted financial information presented herein and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, should not be considered in isolation or as a substitute for operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Net Cash, as may be used and/or presented in this release and/or prior earnings-related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, is comprised of cash, cash equivalents, short-term deposits, and marketable securities less debt amounts as presented in the balance sheets included herein. The term Net Cash is not a required GAAP financial measure, may not be comparable to a similarly titled measure employed by other companies and should not be considered in isolation or as a substitute for cash, debt, operating profit, net profit or loss, cash flows provided by operating, investing and financing activities, per share data or other profit or cash flow statement data prepared in accordance with GAAP. The term Free Cash Flow, as used and/or presented in this release and/or prior earnings related filings and/or in related public disclosures or filings with respect to the financial statements and/or results of the Company, is calculated to be net cash provided by operating activities (in the amounts of $123 million, $94 million and $113 million for the three months periods ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively and in the amounts of
About Tower Semiconductor
Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM), the leading foundry of high-value analog semiconductor solutions, provides technology, development, and process platforms for its customers in growing markets such as consumer, industrial, automotive, mobile, infrastructure, medical and aerospace and defense. Tower Semiconductor focuses on creating a positive and sustainable impact on the world through long-term partnerships and its advanced and innovative analog technology offering, comprised of a broad range of customizable process platforms such as SiPho, SiGe, BiCMOS, mixed-signal/CMOS, RF CMOS, CMOS image sensor, non-imaging sensors, displays, integrated power management (BCD and 700V), and MEMS. Tower Semiconductor also provides world-class design enablement for a quick and accurate design cycle as well as process transfer services including development, transfer, and optimization, to IDMs and fabless companies. To provide multi-fab sourcing and extended capacity for its customers, Tower Semiconductor owns one operating facility in Israel (200mm), two in the U.S. (200mm), and two in Japan (200mm and 300mm) which it owns through its
CONTACT:
Liat Avraham | Investor Relations | +972-4-6506154 | liatavra@towersemi.com
Forward-Looking Statements
This release, as well as other statements and reports filed, stated and published in relation to this quarter’s results, include certain “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among others, projections and statements with respect to our future business, financial performance and activities. The use of words such as “projects”, “expects”, “may”, “targets”, “plans”, “intends”, “committed to”, “tracking”, or words of similar import, identifies a statement as “forward-looking.” Actual results may vary from those projected or implied by such forward-looking statements and you should not place any undue reliance on such forward-looking statements, which describe information known to us only as of the date of this release. Factors that could cause actual results to differ materially from those projected or implied by such forward-looking statements include, without limitation, risks and uncertainties associated with: (i) demand in our customers’ end markets, (ii) reliance on acquisitions and/or gaining additional capacity for growth, (iii) difficulties in achieving acceptable operational metrics and indices as a result of operational, technological or process-related problems, (iv) identifying and negotiating with third-party buyers for the sale of any excess and/or unused equipment, inventory and/or other assets, (v) maintaining current key customers and attracting new key customers, (vi) over demand for our foundry services resulting in high utilization and its effect on cycle time, yield and on schedule delivery, as well as customers potentially being placed on allocation, which may cause customers to transfer their business to other vendors, (vii) financial results may fluctuate from quarter to quarter, (viii) our debt and other liabilities may impact our financial position and operations, (ix) our ability to successfully execute acquisitions, integrate them into our business, utilize our expanded capacity and find new business, (x) fluctuations in cash flow, (xi) our ability to satisfy the covenants stipulated in our agreements with our debt holders, (xii) pending litigation, (xiii) meeting the conditions set in approval certificates and other regulations under which we received grants and/or royalties and/or any type of funding from the Israeli, US and/or Japan governmental agencies, (xiv) receipt of orders that are lower than the customer purchase commitments or forecast and/or failure to receive customer orders currently expected, (xv) possible incurrence of additional indebtedness, (xvi) the effects of global recession, credit crisis and/or unfavorable macro-economic conditions, such as the imposition of regulatory requirements, tariffs, import and export restrictions and other trade barriers and restrictions, including the timing and availability of export licenses and permits, (xvii) our ability to accurately forecast financial performance, which is affected by limited order backlog and lengthy sales cycles which may cause financial results to fluctuate from quarter to quarter, (xviii) possible situations of obsolete inventory if forecasted demand exceeds actual demand when we create inventory before receipt of customer orders, (xix) the cyclical nature of the semiconductor industry and the resulting periodic overcapacity, fluctuations in operating results and future average selling price erosion, (xx) financing capacity acquisition related transactions, strategic and/or other growth or M&A opportunities, including funding Agrate fab’s significant 300mm capacity investments and acquisition or funding of equipment and other fixed assets associated with the capacity corridor transaction with Intel as announced in September 2023, in addition to other capacity and capability expansion plans, such as announced for SiPho and SiGe, and the possible unavailability of such financing and/or the availability of such financing on unfavorable terms, (xxi) operating our facilities at sufficient utilization rates necessary to generate and maintain positive and sustainable gross, operating and net profit, (xxii) the purchase of equipment and/or raw material (including purchases under committed contracts), the timely completion of the equipment installation, technology transfer and raising the funds therefor, (xxiii) product returns and defective products, (xxiv) our ability to maintain and develop our technology processes and services to keep pace with new technology, including artificial intelligence, evolving standards, changing customer and end-user requirements, new product introductions and short product life cycles, (xxv) competing effectively, (xxvi) the use of outsourced foundry services by both fabless semiconductor companies and integrated device manufacturers, (xxvii) our dependence on intellectual property rights of others, our ability to operate our business without infringing others’ intellectual property rights and our ability to enforce our intellectual property against infringement, (xxviii) the Fab 3 landlord’s alleged claims regarding noise abatement and request for judicial declaration of material non-curable breach of the lease that may entitle the landlord to terminate the lease and/or may result in additional contingencies, as well as uncertainties associated with the ability to extend such lease or acquire the real estate and/or agree on extension terms with the landlord and/or obtain the required local, state and/or other approvals required to be able to continue operations beyond the current lease term, (xxix) retention of key employees and recruitment and retention of skilled qualified personnel, (xxx) exposure to inflation, currency rates (mainly the Israeli Shekel, the Japanese Yen and the Euro) and interest rate fluctuations and risks associated with doing business locally and internationally, as well as fluctuations in the market price of our traded securities, (xxxi) meeting regulatory requirements worldwide, including export, environmental and governmental regulations, as well as risks related to international operations, (xxxii) potential engagement for fab establishment, joint venture and/or capital lease transactions for capacity enhancement in advanced technologies, including risks and uncertainties associated with the Agrate fab and the capacity corridor transaction with Intel as announced in September 2023, such as their qualification schedule, technology, equipment and process qualification, facility operational ramp-up, customer engagements, cost structure, required investments and other terms, which may require additional funding to cover significant capacity investment needs and other payments, the availability of which cannot be assured on favorable terms, if at all, (xxxiii) potential liabilities, cost and other impact due to reorganization and consolidation of fabrication facilities, or cessation of operations, including with regard to our 6 inch facility, (xxxiv) potential security, cyber and privacy breaches, (xxxv) workforce that is not unionized which may become unionized, and/or workforce that is unionized and may take action such as strikes that may create increased cost and operational risks, (xxxvi) the issuance of ordinary shares as a result of exercise and/or vesting of any of our employee equity, as well as any sale of shares by any of our shareholders, or any market expectation thereof, as well as the issuance of additional employee stock options and/or restricted stock units, or any market expectation thereof, which may depress the market value of the Company and the price of the Company’s ordinary shares, and in addition may impair our ability to raise future capital, and (xxxvii) climate change, business interruptions due to floods, fires, pandemics, earthquakes and other natural disasters, the security situation in Israel, global trade “war” and the current war in Israel, including the potential inability to continue uninterrupted operations of the Israeli fab, impact on global supply chain to and from the Israeli fab, power interruptions, chemicals or other leaks or damages as a result of the war, absence of workforce due to military service as well as risk that certain countries will restrict doing business with Israeli companies, including imposing restrictions due to hostilities in Israel or political instability in the region that may continue or exacerbate, and other events beyond our control. With respect to the current war in Israel, due to instability in neighboring states, Israel could be subject to additional political, economic, and military confines, and our Israeli facility’s operations could be materially adversely affected. Any current or future hostilities involving Israel or the interruption or curtailment of trade between Israel and its present trading partners, or a significant downturn in the economic or financial condition of Israel, could have a material adverse effect on our business, financial condition and results of operations.
A more complete discussion of risks and uncertainties that may affect the accuracy of forward-looking statements included in this release or which may otherwise affect our business is included under the heading "Risk Factors" in the Company’s most recent filings on Forms 20-F and 6-K, as were filed with the SEC and the Israel Securities Authority. Future results may differ materially from those previously reported. The Company does not intend to update, and expressly disclaims any obligation to update, the information contained in this release.
(Financial tables follow)
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
| (dollars in thousands) | ||||||
| June 30, | December 31, | |||||
| 2025 | 2024 | |||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 265,293 | $ | 271,894 | ||
| Short-term deposits | 942,310 | 946,351 | ||||
| Trade accounts receivable | 215,316 | 211,932 | ||||
| Inventories | 286,747 | 268,295 | ||||
| Other current assets | 53,652 | 61,817 | ||||
| Total current assets | 1,763,318 | 1,760,289 | ||||
| PROPERTY AND EQUIPMENT, NET | 1,402,715 | 1,286,622 | ||||
| GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 9,426 | 10,196 | ||||
| OTHER LONG-TERM ASSETS, NET | 27,951 | 23,378 | ||||
| TOTAL ASSETS | $ | 3,203,410 | $ | 3,080,485 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Short-term debt | $ | 33,079 | $ | 48,376 | ||
| Trade accounts payable | 135,686 | 130,624 | ||||
| Deferred revenues and customers' advances | 15,592 | 21,655 | ||||
| Other current liabilities | 83,964 | 84,409 | ||||
| Total current liabilities | 268,321 | 285,064 | ||||
| LONG-TERM DEBT | 143,018 | 132,437 | ||||
| OTHER LONG-TERM LIABILITIES | 17,634 | 22,804 | ||||
| TOTAL LIABILITIES | 428,973 | 440,305 | ||||
| TOTAL SHAREHOLDERS' EQUITY | 2,774,437 | 2,640,180 | ||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 3,203,410 | $ | 3,080,485 | ||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||
| (dollars and share count in thousands, except per share data) | |||||||||||
| Three months ended | |||||||||||
| June 30, | March 31, | June 30, | |||||||||
| 2025 | 2025 | 2024 | |||||||||
| REVENUES | $ | 372,061 | $ | 358,170 | $ | 351,181 | |||||
| COST OF REVENUES | 292,035 | 284,999 | 264,259 | ||||||||
| GROSS PROFIT | 80,026 | 73,171 | 86,922 | ||||||||
| OPERATING COSTS AND EXPENSES: | |||||||||||
| Research and development | 19,418 | 20,172 | 18,994 | ||||||||
| Marketing, general and administrative | 20,743 | 20,101 | 19,050 | ||||||||
| Restructuring income, net * | -- | -- | (6,270 | ) | |||||||
| 40,161 | 40,273 | 31,774 | |||||||||
| OPERATING PROFIT | 39,865 | 32,898 | 55,148 | ||||||||
| FINANCING AND OTHER INCOME, NET | 14,387 | 10,598 | 7,710 | ||||||||
| PROFIT BEFORE INCOME TAX | 54,252 | 43,496 | 62,858 | ||||||||
| INCOME TAX EXPENSE, NET | (8,660 | ) | (3,779 | ) | (6,108 | ) | |||||
| NET PROFIT | 45,592 | 39,717 | 56,750 | ||||||||
| Net loss (profit) attributable to non-controlling interest | 959 | 425 | (3,305 | ) | |||||||
| NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 46,551 | $ | 40,142 | $ | 53,445 | |||||
| BASIC EARNINGS PER SHARE | $ | 0.42 | $ | 0.36 | $ | 0.48 | |||||
| Weighted average number of shares | 111,810 | 111,575 | 111,037 | ||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.41 | $ | 0.35 | $ | 0.48 | |||||
| Weighted average number of shares | 113,282 | 113,152 | 111,979 | ||||||||
| * Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations. | |||||||||||
| RECONCILIATION FROM GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY TO ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY: | |||||||||||
| GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 46,551 | $ | 40,142 | $ | 53,445 | |||||
| Stock based compensation and amortization of acquired intangible assets | 10,595 | 10,335 | 8,229 | ||||||||
| Restructuring income, net ** | -- | -- | (2,634 | ) | |||||||
| ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 57,146 | $ | 50,477 | $ | 59,040 | |||||
| ADJUSTED EARNINGS PER SHARE: | |||||||||||
| Basic | $ | 0.51 | $ | 0.45 | $ | 0.53 | |||||
| Diluted | $ | 0.50 | $ | 0.45 | $ | 0.53 | |||||
| ** Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations, net of tax. | |||||||||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
| (dollars and share count in thousands, except per share data) | |||||||
| Six months ended | |||||||
| June 30, | |||||||
| 2025 | 2024 | ||||||
| REVENUES | $ | 730,231 | $ | 678,419 | |||
| COST OF REVENUES | 577,034 | 518,891 | |||||
| GROSS PROFIT | 153,197 | 159,528 | |||||
| OPERATING COSTS AND EXPENSES: | |||||||
| Research and development | 39,590 | 38,945 | |||||
| Marketing, general and administrative | 40,844 | 37,720 | |||||
| Restructuring income, net * | -- | (6,270 | ) | ||||
| 80,434 | 70,395 | ||||||
| OPERATING PROFIT | 72,763 | 89,133 | |||||
| FINANCING AND OTHER INCOME , NET | 24,985 | 11,694 | |||||
| PROFIT BEFORE INCOME TAX | 97,748 | 100,827 | |||||
| INCOME TAX EXPENSE, NET | (12,439 | ) | (1,030 | ) | |||
| NET PROFIT | 85,309 | 99,797 | |||||
| Net loss (profit) attributable to non-controlling interest | 1,384 | (1,718 | ) | ||||
| NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 86,693 | $ | 98,079 | |||
| BASIC EARNINGS PER SHARE | $ | 0.78 | $ | 0.88 | |||
| Weighted average number of shares | 111,693 | 110,938 | |||||
| DILUTED EARNINGS PER SHARE | $ | 0.77 | $ | 0.88 | |||
| Weighted average number of shares | 113,218 | 111,964 | |||||
| * Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations. | |||||||
| RECONCILIATION FROM GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY TO ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY: | |||||||
| GAAP NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 86,693 | $ | 98,079 | |||
| Stock based compensation and amortization of acquired intangible assets | 20,930 | 15,438 | |||||
| Restructuring income, net ** | -- | (2,634 | ) | ||||
| ADJUSTED NET PROFIT ATTRIBUTABLE TO THE COMPANY | $ | 107,623 | $ | 110,883 | |||
| ADJUSTED EARNINGS PER SHARE: | |||||||
| Basic | $ | 0.96 | $ | 1.00 | |||
| Diluted | $ | 0.95 | $ | 0.99 | |||
| ** Restructuring income, net resulted from the previously disclosed reorganization and restructure of our Japan operations, net of tax. | |||||||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||
| CONSOLIDATED SOURCES AND USES REPORT (UNAUDITED) | |||||||
| (dollars in thousands) | |||||||
| Three months ended | |||||||
| June 30, | June 30, | ||||||
| 2025 | 2024 | ||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ | 274,818 | $ | 260,497 | |||
| Net cash provided by operating activities | 122,599 | 113,085 | |||||
| Investments in property and equipment, net | (110,682 | ) | (112,615 | ) | |||
| Debt received (repaid), net | 5,104 | (10,439 | ) | ||||
| Effect of Japanese Yen exchange rate change over cash balance | 1,454 | (2,658 | ) | ||||
| Proceeds from (investments in) deposits, marketable securities and other assets, net | (28,000 | ) | 17,443 | ||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 265,293 | $ | 265,313 | |||
| Six months ended | |||||||
| June 30, | June 30, | ||||||
| 2025 | 2024 | ||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | $ | 271,894 | $ | 260,664 | |||
| Net cash provided by operating activities | 216,521 | 223,123 | |||||
| Investments in property and equipment, net | (222,093 | ) | (210,633 | ) | |||
| Debt repaid, net | (21,770 | ) | (18,848 | ) | |||
| Effect of Japanese Yen exchange rate change over cash balance | 4,271 | (5,323 | ) | ||||
| Proceeds from deposits, marketable securities and other assets, net | 16,470 | 16,330 | |||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 265,293 | $ | 265,313 | |||
| TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||||||||||
| (dollars in thousands) | |||||||||||||||
| Three months ended | Six months ended | ||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| CASH FLOWS - OPERATING ACTIVITIES | |||||||||||||||
| Net profit for the period | $ | 45,592 | $ | 56,750 | $ | 85,309 | $ | 99,797 | |||||||
| Adjustments to reconcile net profit for the period | |||||||||||||||
| to net cash provided by operating activities: | |||||||||||||||
| Income and expense items not involving cash flows: | |||||||||||||||
| Depreciation and amortization * | 74,636 | 65,567 | 148,864 | 125,111 | |||||||||||
| Other expense, net | 3,559 | -- | 4,117 | 5,993 | |||||||||||
| Changes in assets and liabilities: | |||||||||||||||
| Trade accounts receivable | 4,972 | (6,602 | ) | (1,382 | ) | (13,091 | ) | ||||||||
| Other current assets | (5,002 | ) | 3,141 | 620 | (10,313 | ) | |||||||||
| Inventories | (7,745 | ) | 17,744 | (11,873 | ) | (5,959 | ) | ||||||||
| Trade accounts payable | 8,218 | (19,741 | ) | (2,896 | ) | 12,818 | |||||||||
| Deferred revenues and customers' advances | (7,297 | ) | (2,091 | ) | (11,729 | ) | (4,022 | ) | |||||||
| Other current liabilities | 5,580 | 274 | 9,298 | 17,142 | |||||||||||
| Other long-term liabilities | 86 | (1,957 | ) | (3,807 | ) | (4,353 | ) | ||||||||
| Net cash provided by operating activities | 122,599 | 113,085 | 216,521 | 223,123 | |||||||||||
| CASH FLOWS - INVESTING ACTIVITIES | |||||||||||||||
| Investments in property and equipment, net | (110,682 | ) | (112,615 | ) | (222,093 | ) | (210,633 | ) | |||||||
| Proceeds from (investments in) deposits, marketable securities and other assets, net | (28,000 | ) | 17,443 | 16,470 | 16,330 | ||||||||||
| Net cash used in investing activities | (138,682 | ) | (95,172 | ) | (205,623 | ) | (194,303 | ) | |||||||
| CASH FLOWS - FINANCING ACTIVITIES | |||||||||||||||
| Debt received (repaid), net | 5,104 | (10,439 | ) | (21,770 | ) | (18,848 | ) | ||||||||
| Net cash provided by (used in) financing activities | 5,104 | (10,439 | ) | (21,770 | ) | (18,848 | ) | ||||||||
| EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE | 1,454 | (2,658 | ) | 4,271 | (5,323 | ) | |||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (9,525 | ) | 4,816 | (6,601 | ) | 4,649 | |||||||||
| CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 274,818 | 260,497 | 271,894 | 260,664 | |||||||||||
| CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 265,293 | $ | 265,313 | $ | 265,293 | $ | 265,313 | |||||||
| * Includes stock based compensation and amortization of acquired intangible assets in the amounts of | |||||||||||||||
| and | |||||||||||||||
| includes stock based compensation and amortization of acquired intangible assets in the amounts of | |||||||||||||||
| and | |||||||||||||||
FAQ
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