Amkor Technology (AMKR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $1.32 billion, with EPS of $0.09, reflecting mixed end-market performance and higher R&D costs for accelerated technology development.

• Communications revenue declined, while computing and consumer segments grew year-over-year; management focused on technology leadership, geographic expansion, and customer partnerships.

• Gross margin fell to 11.9% due to lower sales, factory utilization, and ramp-up costs at the Vietnam Facility.

• Operating income margin dropped to 2.4%, with net income at $21 million.

• Management emphasized agility amid evolving tariffs, trade regulations, and supply chain complexities.

Financial highlights

• Q1 2025 revenue declined 3% year-over-year to $1.32 billion; communications revenue fell 19% YoY, computing rose 21% YoY, automotive/industrial declined 6% YoY, and consumer increased 23% YoY.

• Gross profit was $158 million, gross margin 11.9%, operating income $32 million (2.4% margin), net income $21 million, and EBITDA $197 million (14.9% margin).

• Cash and short-term investments totaled $1.56 billion, with total liquidity of $2.2 billion and total debt of $1.15 billion (debt/EBITDA ratio 1.1x).

• Net cash provided by operating activities was $24 million, down from $162 million year-over-year.

• Free cash flow was negative $50 million, compared to $74 million in Q1 2024.

Outlook and guidance

• Q2 2025 revenue expected between $1.375 billion and $1.475 billion, up 8% sequentially at the midpoint.

• Q2 gross margin projected at 11.5%-13.5%, operating expenses around $125 million, and net income between $17 million and $57 million (EPS $0.07-$0.23).

• CapEx for 2025 remains at $850 million, with 5%-10% allocated to the new Arizona facility.

• Liquidity is expected to be sufficient for at least the next 12 months, supported by cash, investments, and credit facilities.

• Management expects to continue paying quarterly cash dividends, subject to board approval and financial performance.