ON
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XBRL · SEC EDGAR2009–2025(17yr)| Metric | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.8B | $2.3B | $3.4B | $2.9B | $2.8B | $3.2B | $3.5B | $3.9B | $5.5B | $5.9B | $5.5B | $5.3B | $6.7B | $8.3B | $8.3B | $7.1B | $6.0B | -15.3% |
| Gross Profit | $620.7M | $956.0M | $1.0B | $951.9M | $938.4M | $1.1B | $1.2B | $1.3B | $2.0B | $2.2B | $2.0B | $1.7B | $2.7B | $4.1B | $3.9B | $3.2B | $2.0B | -38.3% |
| Gross Margin | 35.1% | 41.3% | 29.3% | 32.9% | 33.7% | 34.3% | 34.1% | 33.2% | 36.7% | 38.1% | 35.8% | 32.7% | 40.3% | 49.0% | 47.1% | 45.4% | 33.1% | -12.3pp |
| Operating Income | $142.6M | $374.2M | $113.4M | -$16.3M | $218.2M | $228.9M | $261.1M | $236.1M | $680.9M | $847.2M | $432.7M | $348.7M | $1.3B | $2.4B | $2.5B | $1.8B | $84.2M | -95.2% |
| Operating Margin | 8.1% | 16.2% | 3.3% | -0.6% | 7.8% | 7.2% | 7.5% | 6.0% | 12.3% | 14.4% | 7.8% | 6.6% | 19.1% | 28.3% | 30.8% | 25.0% | 1.4% | -23.6pp |
| Net Income | $61.0M | $290.5M | $11.6M | -$90.6M | $150.8M | $189.7M | $206.2M | $182.1M | $810.7M | $627.4M | $211.7M | $234.2M | $1.0B | $1.9B | $2.2B | $1.6B | $121.0M | -92.3% |
| Net Margin | 3.4% | 12.6% | 0.3% | -3.1% | 5.4% | 6.0% | 5.9% | 4.7% | 14.6% | 10.7% | 3.8% | 4.5% | 15.0% | 22.8% | 26.5% | 22.2% | 2.0% | -20.2pp |
| Free Cash Flow | $221.6M | $362.9M | $229.1M | $19.7M | $172.1M | $277.0M | $199.8M | $370.5M | $706.7M | $759.4M | $160.1M | $500.7M | $1.3B | $1.6B | $401.9M | $1.2B | $1.4B | +17.0% |
| FCF Margin | 12.5% | 15.7% | 6.7% | 0.7% | 6.2% | 8.8% | 5.7% | 9.5% | 12.7% | 12.9% | 2.9% | 9.5% | 19.8% | 19.6% | 4.9% | 17.1% | 23.7% | +6.5pp |
| EPS (Diluted) | $0.14 | $0.65 | $0.03 | $-0.20 | $0.33 | $0.43 | $0.48 | $0.43 | $1.89 | $1.44 | $0.51 | $0.56 | $2.27 | $4.25 | $4.89 | $3.63 | $0.29 | -92.0% |
1. THE BIG PICTURE
ON Semiconductor is currently a business in transition, aggressively returning capital to shareholders to offset a significant cyclical downturn in its primary markets. While management is positioning ON Semiconductor as a specialized leader in "intelligent power" for AI and electric vehicles, the current reality is a shrinking top line and a heavy reliance on a manufacturing footprint that is undergoing a painful 2025 realignment.
2. WHERE THE RISKS HIT HARDEST
The strategy of vertical integration for Silicon Carbide (SiC) is intended to provide "cost competitiveness and supply assurance" (10-K Item 1), but this strength is directly threatened by manufacturing interdependence. Because ON Semiconductor operates a network where a disruption at a single site can disproportionately impact the production of many products, any operational hiccup in its specialized SiC facilities could negate the very "supply assurance" it claims as a competitive advantage.
Furthermore, the focus on AI data centers and automotive electrification is threatened by end-market concentration. With 79% of 2025 revenue tied to the automotive and industrial sectors (Risks), ON Semiconductor’s "comprehensive portfolio" (10-K Item 1) provides little protection if these specific cycles remain depressed. The recent 17% revenue drop in the Intelligent Sensing Group (8-K) demonstrates that even "leading-edge" sensing technology cannot outrun a broader sector slowdown.
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a stark contrast between operational performance and shareholder treatment. While revenue fell 15.3% and net income dropped from $379.9 million to $181.8 million year-over-year (8-K), ON Semiconductor maintained a Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin of 19.7%—ranking 3rd among its peers (XBRL). This cash generation allowed ON Semiconductor to return 100% of its annual FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders to shareholders, leading the peer group with a 4.7% buyback yield.
This aggressive buyback program appears to be a defensive maneuver during a period of structural realignment. The 15.3% revenue contraction is the worst in the peer group, diverging sharply from competitors like Texas Instruments (+13.0%) and Analog Devices (+16.9%). This gap is likely driven by ON Semiconductor’s specific "2025 Manufacturing Realignment Program," which involves workforce reductions and asset impairments as it shifts away from legacy manufacturing toward the Treo and EliteSiC platforms. Short interest of 14.7% of the float suggests a significant portion of the market remains skeptical that this stabilization has truly taken hold.
4. IS IT WORTH IT AT THIS PRICE?
At a 14.8x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, the market is pricing in ~6.2% long-term growth (CAPM analysis). This represents a modest discount to the peer median of 24.7x. This discount is justified by ON Semiconductor's current negative growth trajectory (-15.3%) and its 5.3% operating margin, which is the lowest in its peer group.
For the current price to be right, ON Semiconductor must prove that its "major investment cycle" is truly over, as the CFO claims (8-K). If growth were to slow to a GDP-pace of 2.5%, the justified multiple would fall to 9.6x, representing roughly 35% downside. The primary risk that could force this lower valuation is the $3,004.9 million in debt; if cash flow weakens further during the realignment, the cost of servicing this debt could limit the R&DR&DResearch & Development — spending on creating new products or technologies spending necessary to secure future "design wins."
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if short interest continues to climb above 15% or if the first quarter 2026 gross margin falls below the guided floor of 37.4% (8-K).
- Constructive if the Power Solutions Group (PSG) returns to positive year-over-year growth, signaling that the EliteSiC and SiC JFET technologies are successfully gaining market share in the AI data center "power tree."
6. BOTTOM LINE
Structural Advantage: Vertical integration in Silicon Carbide manufacturing combined with a "complete power tree" portfolio for AI data centers.
Bottom Line: ON Semiconductor is a high-risk recovery play where aggressive share buybacks are currently masking a deep cyclical contraction and a complex manufacturing overhaul.
1. Top 5 Material Risks
- Manufacturing Interdependence: ON Semiconductor operates a network of owned and third-party facilities where a disruption at a single site can disproportionately impact the production of many products, potentially leading to a loss of future revenues.
- End-Market Concentration: With 79% of 2025 revenue derived from the automotive and industrial sectors, ON Semiconductor is highly exposed to cyclical demand fluctuations, inflationary pressures, and interest rate changes within these specific markets.
- Debt Obligations: ON Semiconductor maintains $3,004.9 million in outstanding principal debt; failure to meet these obligations or restrictive covenants could limit operational flexibility and trigger cross-defaults across its credit facilities.
- Supply Chain and Forecasting: ON Semiconductor relies on limited, specialized third-party suppliers and must commit to purchase goods based on forecasts; inaccurate forecasting can lead to excess or obsolete inventory charges or higher unit costs if capacity is underutilized.
- Research and Development: ON Semiconductor must make substantial, ongoing investments in R&DR&DResearch & Development — spending on creating new products or technologies to remain competitive; failure to win "design wins" or successfully commercialize new technologies can result in a failure to recover capital expenditures and achieve expected gross margins.
2. Company-Specific Risks
- Note Hedge and Warrant Dilution: ON Semiconductor entered into note hedge and warrant transactions related to its 0% and 0.50% Notes; these could have a dilutive effect on common stock if the market price exceeds $74.34 or $156.78, respectively.
- ERP System Transition: The implementation of a new enterprise resource planning system in the third quarter of 2025 introduces risks of operational disruption, data loss, and increased costs that could adversely affect business operations.
- Leshan-Phoenix Joint Venture: ON Semiconductor owns an 80% interest in this Chinese assembly and test facility, which is subject to heightened geopolitical risks, potential trade restrictions, and export licensing requirements between the U.S. and China.
- AI Infrastructure Exposure: While ON Semiconductor expects growth in power technologies for AI data centers, it faces risks of reputational harm or regulatory scrutiny due to its association with AI infrastructure, even if it does not control the final use of the systems.
3. Regulatory/Legal Risks
- Anti-Corruption Compliance: ON Semiconductor is subject to the Foreign Corrupt Practices Act (FCPA); any investigation into potential violations could harm ON Semiconductor's reputation and result in significant criminal or civil penalties.
- Environmental Regulations: ON Semiconductor faces increasing regulation regarding the use of per- and polyfluoroalkyl substances (PFAS) and conflict minerals, which may restrict the availability of materials or increase compliance costs.
- Corporate Alternative Minimum Tax (CAMT): While currently not liable, future changes in financial results or interpretations of the One Big Beautiful Bill Act (OBBBA) could result in a CAMT liability.
- Data Privacy Laws: ON Semiconductor collects Personally Identifiable Information (PII) and is subject to evolving global privacy frameworks, including those in the European Union and various U.S. states, where non-compliance could lead to substantial monetary fines.
4. Financial Impact Map
Manufacturing Interdependence → Revenue → Potential loss of future revenues due to production delays or cessation. End-Market Concentration → Revenue → Fluctuations in demand for automotive and industrial products directly impact total revenue. Debt Obligations → Cash Flow / Liquidity → Inability to meet debt service obligations could lead to foreclosure on collateral or the need to issue dilutive common stock. Supply Chain and Forecasting → Gross Profit → Inaccurate demand forecasting leads to excess or obsolete inventory charges and higher average unit costs. Research and Development → Gross Margin → Failure to achieve expected gross margins on new products if design wins do not generate sufficient sales to recover development costs.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Nov 2025 | Oct 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
ON Semiconductor modules selected by Sineng Electric for utility-scale solar and storage systems
- ▸Sineng Electric to use FS7 IGBT and EliteSiC modules in 430kW storage systems
- ▸Modules improve inverter power-to-weight performance by approximately 33%
- ▸Design win supports long-term shift toward high-margin SiC and power solutions
- ▸Company projects $7.5B revenue and $1.9B earnings by 2028
- ▸Near-term margin pressure persists from low factory utilization and legacy business exits
Navitas Launches 5th Generation GeneSiC MOSFETs Targeting AI Data Center Power Efficiency
- ▸Launched 5th generation GeneSiC silicon carbide (SiC) MOSFETs
- ▸Targeting high-power AI data center and energy infrastructure markets
- ▸SiC technology improves energy efficiency and handles higher voltages/temperatures
- ▸Trading volume reached 44.8 million shares, 105% above 3-month average
- ▸Stock closed up 3.86% following product announcement
ON Semiconductor Power Solutions Group President Simon Keeton to Resign by June 2026
- ▸Simon Keeton, Power Solutions Group President, resigned from all officer roles
- ▸Keeton to remain with company until June 30, 2026 for transition
- ▸Power Solutions Group is core to automotive and energy-efficient product strategy
- ▸2025 revenue reported at $5.995 billion with $121 million net income
- ▸Long-term 2028 targets project $7.5 billion revenue and $1.9 billion earnings
Navitas Semiconductor surges 25% on launch of AI-focused power semiconductor platforms
- ▸Launched new SiC MOSFET and AI-focused power semiconductor platforms
- ▸Shares rose 25.23% to $10.84 on high trading volume
- ▸Trading volume 54.7 million shares, 161% above 3-month average
- ▸New platforms target AI data centers and energy infrastructure efficiency
- ▸Maintains strategic partnership with Nvidia for AI data center support
ON Semiconductor Q4 revenue $1.53B misses estimates, EPS $0.64 beats by 3.23%
- ▸Q4 revenue $1.53B, down 11.2% YoY, missed estimates by 0.19%
- ▸Non-GAAP EPS $0.64, down 32.6% YoY, beat estimates by 3.23%
- ▸Non-GAAP gross margin contracted to 38.2% from 45.3% YoY
- ▸Q1 revenue guidance $1.44B–$1.54B; EPS guidance $0.56–$0.66
- ▸Free cash flow increased to $485.4M from $372.4M sequentially