NXP Semiconductors reported third-quarter 2025 revenue of $3.17 billion, exceeding the midpoint of guidance and reflecting sequential improvement across regions and end markets. Management said the outlook benefits from company-specific growth drivers alongside early signs of a cyclical recovery, with continued emphasis on disciplined investment and portfolio focus.

Financial highlights
• Revenue: $3.17 billion, down 2% year over year
• GAAP profitability: gross margin 56.3%, operating margin 28.1%, diluted EPS $2.48
• Non-GAAP profitability: gross margin 57.0%, operating margin 33.8%, diluted EPS $3.11
• Cash generation: $585 million from operations; $76 million in net capex; non-GAAP free cash flow of $509 million
• Capital returns: $310 million returned during the quarter (about 61% of non-GAAP free cash flow), including $54 million in buybacks and $256 million in dividends; an additional $100 million of repurchases executed after quarter-end under a 10b5-1 plan

Operational and strategic updates
• Product leadership: Introduced the BMx7318/7518 family, an 18-channel Li-ion battery cell controller platform designed for high-voltage EV battery management, industrial energy storage, and 48-volt systems. The devices target both automotive ASIL C and industrial SIL 2 functional safety requirements.
• Portfolio shaping: Reached a definitive agreement to sell the MEMS sensors business line to STMicroelectronics for up to $950 million in cash, including $900 million at closing and up to $50 million tied to technical milestones; closing anticipated in the first half of 2026.
• Balance sheet: Priced $1.5 billion aggregate principal of senior unsecured notes across 2028, 2032, and 2035 maturities, at coupons of 4.300%, 4.850%, and 5.250% respectively.
• Shareholder returns: The board approved a third-quarter interim dividend of $1.014 per ordinary share, paid October 8 to shareholders of record as of September 17.
• M&A execution: Closed the acquisition of Aviva Links for $243 million in cash before closing adjustments. The business adds Automotive SerDes Alliance–compliant in-vehicle connectivity solutions, expanding NXP’s automotive networking portfolio across automotive and industrial & IoT markets.
• AI acceleration: Received all required regulatory approvals for the acquisition of Kinara, a provider of high-performance, energy-efficient, programmable neural processing units. The parties are working to complete remaining closing conditions.

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