ON Semiconductor: Net Margin Falls to 7.3%, Undercutting Bullish Narratives on Quality of Earnings

ON Semiconductor reported a 24.8% net profit margin for FY24, down from 7.3% in FY25. The company's earnings growth turned negative due to a $634.2 million one-off loss. Despite this, ON Semiconductor's forecasted 39% annual earnings growth is notable. The company's revenue is expected to grow at 4.7% per year, slower than the 10.5% projected growth for the US market. Analysts believe ON Semiconductor's Fab Right initiative and selective capacity reductions will improve operational leverage, but underutilization remains a concern.