Tower Semiconductor (TSEM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $358 million, up 9% year-over-year from $327 million in Q1 2024, with net profit of $40 million and basic EPS of $0.36.

• Sequential revenue growth is guided for each quarter of 2025, with acceleration expected in the second half as capacity investments ramp.

• RF infrastructure and power management segments showed significant year-over-year revenue share gains, driven by data center, AI, and new handset-related markets.

• Silicon Photonics and Silicon Germanium technologies achieved record revenues, with strong growth expected to continue.

• Q2 2025 revenue guidance is $372 million (+/- 5%), representing a 6% year-over-year increase.

Financial highlights

• Q1 2025 revenue increased 9% year-over-year, up $31 million from Q1 2024.

• Gross profit for Q1 2025 was $73 million, flat year-over-year, as higher revenue was offset by fixed costs from new facilities.

• Operating profit was $33 million, slightly down from $34 million in Q1 2024.

• Adjusted net profit for Q1 2025 was $50.5 million, with adjusted diluted EPS of $0.45.

• Cash and cash equivalents at March 31, 2025, were $275 million.

Outlook and guidance

• Q2 2025 revenue is guided to a midpoint of $372 million, plus or minus 5%.

• Sequential revenue increases are expected throughout 2025, with strong acceleration in the second half.

• Silicon Photonics business is on track to double 2024 revenue of $105 million in 2025.

• RF Mobile business is expected to have bottomed in Q1 and to grow through the rest of the year.

• 2025 revenue target reaffirmed, with expectations for sequential quarter-over-quarter growth.