ON Semiconductor Corp.

Revenue Decline and Q1 Guidance: ON Semiconductor reported Q4 2024 revenue of $1.72 billion, down sequentially as demand weakened, particularly due to inventory digestion and geopolitical uncertainties. For Q1 2025, they anticipate revenue in the range of $1.35 billion to $1.45 billion, indicating a substantial decline, especially in the automotive segment, which is expected to drop over 25%.

Gross Margin Pressure: The company reported a non-GAAP gross margin of 45.3% for Q4 2024, a slight decline from the previous quarter. For Q1 2025, they expect gross margins to dip further to between 39% and 41%, driven by lower utilization rates and an unfavorable product mix, which will impact profitability.

Automotive Segment Resilience vs. Weakness: Automotive revenue increased by 8% sequentially in Q4 2024, spurred by gains in China and North America. However, the overall outlook for Q1 shows a significant decline due to reduced demand and extended shutdowns around Chinese New Year, raising concerns about the sustainability of recent growth.