Semiconductor Manufacturing International (981) Q1 2025 earnings summary

Executive summary

• Revenue reached $2,247 million in Q1 2025, up 1.8% sequentially and 28.4% year-over-year.

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

• Profit attributable to owners was $188 million, up 74.8% sequentially and 161.9% year-over-year.

• EBITDA was $1,292 million with a margin of 57.5%.

• Capacity utilization rose to 89.6%, offsetting ASP declines and higher depreciation.

Financial highlights

• Operating profit increased to $310 million, up 44.3% sequentially and over 12,000% year-over-year.

• Operating expenses dropped 31% sequentially to $196.3 million, mainly due to lower R&D and G&A costs.

• Net cash generated from operating activities was negative $160 million, compared to $1,450 million in Q4 2024.

• Capital expenditure was $1,416 million in Q1 2025, down from $1,660 million in Q4 2024.

• Total assets at quarter-end were $48 billion; cash on hand was $12.7 billion.

Outlook and guidance

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

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

• Capital expenditure for 2025 projected to be roughly flat year-over-year.