Semiconductor Manufacturing International (981) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $2,247.2 million, up 1.8% sequentially and 28.4% year-over-year, with gross margin at 22.5% and profit attributable to the company at $188 million, a 74.8% sequential and 161.9% year-over-year increase.

• EBITDA was $1,292 million, with a margin of 57.5%, up from $1,280 million in Q4 2024 and $887 million in Q1 2024.

• Wafer revenue grew nearly 5% sequentially, driven by increased shipments and demand in industrial and automotive sectors; shipments rose 15% sequentially to 2,292,000 wafers.

• Revenue by region: China 84.3%, America 12.6–13%, Eurasia/New Asia 3–3.1%; industrial and automotive revenue contribution increased from 8% to 10%.

• Quarterly revenue fell short of original guidance, with the impact expected to extend into Q2.

Financial highlights

• Gross margin was 22.5%, stable sequentially and up from 13.7% a year ago; EBITDA margin was 57.5%.

• Profit from operations was $310 million, up 44.3% sequentially and over 12,000% year-over-year.

• Total assets at quarter-end were $48 billion, with cash on hand of $12.7 billion and total equity of $32.2 billion.

• Debt to equity ratio was 34.9%, net debt to equity ratio was negative 4.5%.

• Net cash used in operating activities was $160 million; investing activities used $1,328 million; financing activities used $354 million.

Outlook and guidance

• Q2 2025 revenue expected to decrease by 4% to 6% sequentially; gross margin guidance is 18% to 20%.

• Shipment units expected to remain stable, but blended ASP is expected to decrease.

• Equipment depreciation will continue to rise, impacting gross margin.

• Visibility for the second half of the year is limited, with both opportunities and challenges anticipated.