Tower Semiconductor (TSEM) Q2 2025 earnings summary

Executive summary

• Achieved Q2 2025 revenue of $372 million, up 6% year-over-year and 4% sequentially, with net profit of $47 million and EPS of $0.42 basic, $0.41 diluted.

• Q3 2025 revenue guidance is $395 million ±5%, with Q4 expected to increase by $40+ million over Q3, targeting best-ever quarterly revenue above $435 million.

• Strategic focus on expanding RF infrastructure, silicon-germanium, and silicon photonics capacity, with significant progress in customer qualifications and production ramp.

• Strong demand and customer adoption in data center, AI, and optical transceiver markets, with leadership in silicon photonics and RF technologies.

Financial highlights

• Q2 2025 gross profit was $80 million and operating profit $40 million, both up $7 million sequentially.

• Adjusted net profit for Q2 2025 was $57.1 million, with adjusted diluted EPS at $0.45.

• Assets totaled $3.2 billion at June 2025, with $1.4 billion in fixed assets and $1.8 billion in current assets; current assets ratio about 7x.

• Shareholders' equity reached a record $2.8 billion.

• Cash and cash equivalents at June 30, 2025: $265 million.

Outlook and guidance

• Q3 2025 revenue guided at $395 million ±5%, with Q4 expected to exceed $435 million.

• Sequential quarter-over-quarter growth expected throughout 2025, with acceleration in the second half.

• End-state capacity by H2 2026 to be 33% higher in silicon-germanium and 2.2x larger in silicon photonics than Q4 2025 targets.

• Annual revenue target of $2.7 billion at full fab loading by 2028–2029.