NXP Semiconductors reports Q2 revenue of $2.93 bln, down 6% YoY.

• NXP Semiconductors reports Q2 2025 revenue of $2.93 bln, down 6% YoY • All focus end-markets perform above expectations • Q3 guidance reflects cyclical improvement and growth drivers • Company drives solid profitability and earnings through competitive portfolio and hybrid manufacturing strategy

NXP Semiconductors N.V. (NASDAQ: NXPI) reported its financial results for the second quarter, ending June 29, 2025. The company's revenue for the period was $2.93 billion, a 6% year-over-year (YoY) decline. Despite the decrease, all focus end-markets performed above expectations, reflecting strong market demand.

Kurt Sievers, NXP's Chief Executive Officer, commented, "NXP delivered quarterly revenue of $2.93 billion, above the midpoint of our guidance, with all our focus end-markets performing above expectations. Our guidance for the third quarter reflects the combination of an emerging cyclical improvement in NXP's core end markets as well as the performance of our company-specific growth drivers. We continue to drive solid profitability and earnings by strengthening our competitive portfolio and by aligning our wafer fabrication footprint consistent with our hybrid manufacturing strategy."

Key highlights for the second quarter 2025 include:
- Revenue: $2.93 billion, down 6% YoY
- GAAP Gross Margin: 53.4%
- GAAP Operating Margin: 23.5%
- GAAP Diluted Net Income per Share: $1.75
- Non-GAAP Gross Margin: 56.5%
- Non-GAAP Operating Margin: 32.0%
- Non-GAAP Diluted Net Income per Share: $2.72

NXP also reported strong cash flow from operations of $779 million, with net capex investments of $83 million, resulting in non-GAAP free cash flow of $696 million. Capital return during the quarter was $461 million, representing 66% of second quarter non-GAAP free cash flow. Share buybacks were $204 million, and dividends paid during the quarter were $257 million.

The company's automotive end-market revenue was $1.729 billion, up 3% YoY, while industrial and IoT revenue was $546 million, up 7% YoY. Mobile and communication infrastructure revenue was $331 million and $320 million, respectively, both down year-over-year.

NXP also announced several strategic initiatives during the quarter. These include the third generation imaging processors for Level 2+ to Level 4 Autonomous Driving, a co-development of a software-defined vehicle (SDV) architecture with Rimac Technology, and the completion of the acquisition of TTTech Auto.

For the third quarter 2025, NXP provided the following guidance:
- Revenue: $3,050 to $3,250 million
- GAAP Gross Margin: 55.4% to 56.5%
- GAAP Operating Margin: 26.8% to 29.0%
- GAAP Diluted Net Income per Share: $2.22 to $2.62

NXP's results reflect a company focused on driving growth through strategic initiatives and maintaining profitability through a competitive portfolio and hybrid manufacturing strategy.

References:
[1] https://investors.nxp.com/news-releases/news-release-details/nxp-semiconductors-reports-second-quarter-2025-results