Semiconductor Manufacturing International (981) Q2 2025 earnings summary

Executive summary

• First half 2025 revenue reached $4,456.3 million, up 22% year-over-year, with Q2 revenue at $2,209 million, down 1.7% sequentially but up 16.2% year-over-year.

• Gross margin improved to 21.4% for H1 2025 (up from 13.8% year-over-year), with Q2 gross margin at 20.4%, a sequential decrease.

• Net profit attributable to owners was $320.5 million for H1 2025, up 35.6% year-over-year; Q2 profit attributable was $132 million.

• EBITDA for H1 2025 was $2,421.2 million (margin 54.3%); Q2 EBITDA was $1,129 million (margin 51.1%).

• Maintained position as the world’s second-largest pure-play wafer foundry and leading foundry in Chinese Mainland.

Financial highlights

• Wafer revenue for H1 2025 was $4,228.6 million, up 24.6% year-over-year.

• Net cash from operating activities rose 85.8% to $909.3 million for H1 2025; Q2 net cash from operating activities was $1,450 million.

• Basic and diluted EPS for H1 2025 were $0.04, up 33.3% year-over-year.

• R&D expenses for H1 2025 decreased 10.3% to $330.8 million; R&D as a percentage of revenue fell to 7.4%.

• Total assets at quarter-end were $49.4 billion, with cash and equivalents at $5,082.7 million; outstanding debt was $11,943.9 million.

Outlook and guidance

• Q3 2025 revenue is expected to increase 5% to 7% sequentially, with gross margin guidance of 18% to 20%.

• Full-year revenue growth is targeted to exceed the industry average, assuming a stable external environment.

• Q4 is expected to follow seasonal patterns, with high capacity utilization anticipated to persist.

• Ongoing monitoring of U.S. tariff/geopolitical risks and demand recovery in emerging markets.

• Focus areas include capacity expansion, new application scenarios, and industry-academia collaboration.