ON SEMICONDUCTOR CORP has recently released its 10-K report, providing a detailed look at its financial performance for the year ended December 31, 2025. The company operates through three segments: Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group, offering a range of semiconductor products for various end-markets.
In 2025, ON SEMICONDUCTOR reported a revenue of $5,995.4 million, representing a 15.3% decrease from the previous year's $7,082.3 million. The net income attributable to ON SEMICONDUCTOR was $121.0 million in 2025, a significant drop from $1,572.8 million in 2024. The operating income also saw a substantial decline, totaling $84.2 million in 2025 compared to $1,767.7 million in 2024. The gross margin decreased by approximately 1,230 basis points to 33.1% in 2025 from 45.4% in 2024, primarily due to restructuring, asset impairment, and other charges resulting from the 2025 Manufacturing Realignment Program.
The semiconductor industry continued to experience softening demand and uncertainty in 2025 due to macroeconomic factors and the geopolitical environment. Consequently, ON SEMICONDUCTOR focused on operational excellence and cash flow generation, actively managing and taking corrective actions in manufacturing capacity and spending to align with forecasted demand. The company also implemented cost-saving initiatives to align its overall cost structure, capital investments, and other expenditures with expected revenue, spending, and capacity levels, offsetting softening demand and increased manufacturing and operating costs.
The company's segment results for 2025 revealed a decrease in revenue across all segments. Revenue from the Power Solutions Group (PSG) decreased by approximately 16.2%, the Analog and Mixed-Signal Group (AMG) by 13.3%, and the Intelligent Sensing Group (ISG) by 17.5% compared to 2024. Additionally, the geographic breakdown of revenue showed declines across all major regions, including Hong Kong, the United Kingdom, Singapore, and the United States.
ON SEMICONDUCTOR's gross profit for 2025 decreased by approximately 38.3% compared to 2024, mainly due to excess and obsolete inventory charges and a decline in sales volume across end-markets. The company's operating expenses also saw reductions, with research and development, selling and marketing, and general and administrative expenses decreasing by approximately 5%, 6%, and 7% year-over-year, respectively.
The market has reacted to these announcements by moving the company's shares 0.08% to a price of $60.33. If you want to know more, read the company's complete 10-K report here.
