onsemi reported fourth quarter revenue of $1,530 million, alongside strong cash generation and continued investment in intelligent power and sensing technologies.

For the fourth quarter, GAAP gross margin was 36.0%, with non-GAAP gross margin at 38.2%. GAAP operating margin came in at 13.1%, while non-GAAP operating margin reached 19.8%. GAAP diluted earnings per share were $0.45, compared with non-GAAP diluted EPS of $0.64.

For full-year 2025, onsemi generated $1.8 billion in cash from operations and $1.4 billion in free cash flow, achieving a record free cash flow margin of 24%.

“We remained disciplined in our execution and met expectations in the fourth quarter as we saw increasing signs of stabilization in our key markets,” said Hassane El-Khoury, President and CEO of onsemi. “We continue to invest in intelligent power and sensing technologies that position us to win in the most critical technology transitions shaping our industry. Our strategy is clear: lead in automotive, industrial, and AI data center power with innovation that delivers higher-value solutions for our customers and long-term returns for our shareholders.”

Thad Trent, EVP and CFO of onsemi, added that the company returned 100% of its annual free cash flow to shareholders through share repurchases in 2025. He noted that with major investment cycles largely complete and new technologies ramping, the company is focused on cost structure improvements, operational excellence and margin expansion as market conditions recover.

During the quarter, onsemi authorized a new share repurchase program of up to $6 billion over the next three years. The company also introduced vertical gallium nitride (vGaN) power semiconductors, targeting higher power density, improved efficiency and enhanced ruggedness.

In addition, onsemi signed a memorandum of understanding with Innoscience to explore expanded production of GaN power devices using Innoscience’s 200 mm GaN-on-silicon process. The company further strengthened its GaN roadmap by establishing a collaboration agreement with GlobalFoundries (GF) to develop and manufacture next-generation GaN power devices, beginning with 650 V products.

Original – onsemi