Tower Semiconductor Delivers Impressive Q2 Results and Outlook

Tower Semiconductor's Strong Q2 2025 Performance

Migdal HaEmek, Israel — Tower Semiconductor (NASDAQ/TASE: TSEM) has announced its financial performance for the second quarter of 2025, showcasing notable revenue growth.

Financial Highlights for Q2 2025

The company reported revenues of $372 million for the second quarter. This figure represents a 6% increase year-over-year and a 4% rise from the previous quarter, indicating a solid upward trend.

Gross profit for this period reached $80 million, a notable improvement from $73 million reported in the first quarter of 2025.

Net profit stood at $47 million for Q2 2025, translating into earnings per share of $0.42 (basic) and $0.41 (diluted). This marks a significant increase over the $40 million net profit and earnings per share of $0.36 (basic) and $0.35 (diluted) from Q1 2025.

Operating Activities and Investments

The cash flow generated from operating activities in the second quarter was $123 million. Additionally, investments in property and equipment were reported at $111 million, same as in the preceding quarter.

Projected Q3 Revenue Growth

Looking ahead, Tower Semiconductor has provided guidance for Q3 2025 revenues to reach approximately $395 million. This forecast includes a possible variation of plus or minus 5%, implying a projected 7% increase on a year-over-year basis and a 6% increase quarter-over-quarter.

Strategic Initiatives by the Company

Russell Ellwanger, the Chief Executive Officer, expressed confidence in the strong quarterly results, emphasizing the company's strategic initiatives aimed at expanding capacity for RF infrastructure. The momentum in the RF sector is bolstered by increasing demands driven by data centers and advancements in artificial intelligence.

The company’s ability to maintain a leading market share in RF infrastructure is seen as beneficial for future growth, with committed customer forecasts on the rise.

Ellwanger emphasized the ongoing development of partnerships that enhance innovation and trust among clients, positioning Tower Semiconductor favorably for long-term revenue growth.

Upcoming Investor Conference Call

Tower Semiconductor will host an investor conference call to discuss these results, along with its future outlook. This teleconference aims to provide detailed insights and respond to shareholder questions.

About Tower Semiconductor

Tower Semiconductor Ltd. (NASDAQ/TASE: TSEM) stands as a pioneering foundry in high-value analog semiconductor solutions, catering to various markets including consumer electronics, automotive, industrial applications, and more. The company's mission is to create sustainable impact through innovative partnerships and technology offerings.

Its diverse range of customizable process platforms includes technologies like SiPho, SiGe, and RF CMOS, focusing on high-quality design enablement and process transfer services.

Contact Information

For investor relations, please reach out to:
Liat Avraham | Investor Relations | +972-4-6506154 | liatavra@towersemi.com

Frequently Asked Questions

What financial results did Tower Semiconductor report for Q2 2025?

The company reported revenues of $372 million, gross profit of $80 million, and a net profit of $47 million for Q2 2025.

How does Q2 2025 revenue compare to previous quarters?

The revenue in Q2 2025 represents a 6% increase year-over-year and a 4% increase from Q1 2025.

What is Tower Semiconductor's revenue guidance for Q3 2025?

The company forecasts approximately $395 million in revenue for Q3 2025, indicating a year-over-year increase of 7%.

Who is the CEO of Tower Semiconductor?

Russell Ellwanger is the Chief Executive Officer of Tower Semiconductor.

What markets does Tower Semiconductor serve?

The company provides semiconductor solutions for consumer electronics, industrial, automotive, mobile, and medical markets.

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