Amkor Technology Reports Financial Results for the Second Quarter 2025

About this update from Amkor Technology, Inc.

TEMPE, Ariz. --(BUSINESS WIRE)-- Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the second quarter ended June 30, 2025 . Second Quarter 2025 Highlights Net sales $1.51 billion Gross profit $182 million , operating income $92 million Net income $54 million , earnings per diluted share $0.22 EBITDA $259 million “We delivered second quarter revenue of $1.51 billion , up 14% sequentially and above the high end of guidance, with double-digit growth across all end markets,” said Giel Rutten , Amkor’s president and chief executive officer. “Amkor is strengthening its strategic presence in AI, HPC, and other technologies reshaping the industry. Our strong customer relationships and broad geographic footprint make us an ideal partner to deliver next-generation solutions.” Quarterly Financial Results ($ in millions, except per share data) Q2 2025 (2) Q1 2025 Q2 2024 Net sales $1,511 $1,322 $1,461 Gross margin 12.0% 11.9% 14.5% Operating income $92 $32 $82 Operating income margin 6.1% 2.4% 5.6% Net income attributable to Amkor $54 $21 $67 Earnings per diluted share $0.22 $0.09 $0.27 EBITDA (1) $259 $197 $247 (1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under “Selected Operating Data.” (2) During the three months ended June 30, 2025 , our results include a $32 million net benefit to operating income and EBITDA due to a contingency payment related to our acquisition of Nanium in May 2017 . Net income and earnings per diluted share also include a $16 million and $0.07 benefit, respectively. At June 30, 2025 , total cash and short-term investments was $2.0 billion , and total debt was $1.6 billion . In July 2025 the company will repay a total of $223 million in debt. The company paid a quarterly dividend of $0.08269 per share on June 25, 2025 . The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors. Business Outlook The following information presents Amkor’s guidance for the third quarter 2025 (unless otherwise noted): Net sales of $1.875 billion to $1.975 billion Gross margin of 13.0% to 14.5% Net income of $85 million to $120 million , or $0.34 to $0.48 per diluted share Full year 2025 capital expenditures of approximately $850 million Conference Call Information Amkor will conduct a conference call on Monday, July 28, 2025 , at 5:00 p.m. Eastern Time . This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com . The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337. About Amkor Technology, Inc. Amkor Technology, Inc. (Nasdaq: AMKR) is the world’s largest U.S. headquartered OSAT and is a global leader in outsourced semiconductor packaging and test services. With a strong track record of innovation, a broad and diverse geographic footprint and solid partnerships with lead customers, Amkor delivers high-quality solutions that enable the world’s leading semiconductor and electronics companies to bring advanced technologies to market. The company’s comprehensive portfolio includes advanced packaging, wafer-level processing, and system-in-package solutions targeting applications for smartphones, data centers, artificial intelligence, automobiles and wearables. For more information visit amkor.com AMKOR TECHNOLOGY, INC. Selected Operating Data Q2 2025 Q1 2025 Q2 2024 Net Sales Data: Net sales (in millions): Advanced products (1) $ 1,228 $ 1,064 $ 1,180 Mainstream products (2) 283 258 281 Total net sales $ 1,511 $ 1,322 $ 1,461 Packaging services 88 % 88 % 88 % Test services 12 % 12 % 12 % Net sales from top ten customers 72 % 71 % 72 % End Market Distribution Data: Communications (smartphones, tablets) 40 % 40 % 48 % Computing (data center, infrastructure, PC/laptop, storage) 22 % 22 % 20 % Automotive, industrial and other (ADAS, electrification, infotainment, safety) 20 % 21 % 20 % Consumer (AR & gaming, connected home, home electronics, wearables) 18 % 17 % 12 % Total 100 % 100 % 100 % Gross Margin Data: Net sales 100.0 % 100.0 % 100.0 % Cost of sales: Materials 52.9 % 52.4 % 54.0 % Labor 11.7 % 12.0 % 10.4 % Depreciation 9.6 % 10.6 % 9.1 % Other manufacturing 13.8 % 13.1 % 12.0 % Gross margin 12.0 % 11.9 % 14.5 % (1) Advanced products include flip chip, memory and wafer-level processing and related test services. (2) Mainstream products include all other wirebond packaging and related test services. In this press release, we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, and our ability to service debt, fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income. Non-GAAP Financial Measure Reconciliation: (in millions) Q2 2025 Q1 2025 Q2 2024 EBITDA Data: Net income $ 55 $ 22 $ 67 Plus: Interest expense 17 17 16 Plus: Income tax expense 28 4 14 Plus: Depreciation & amortization 159 154 150 EBITDA $ 259 $ 197 $ 247 AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) For the Three Months Ended June 30 , For the Six Months Ended June 30 , 2025 2024 2025 2024 Net sales $ 1,511,392 $ 1,461,474 $ 2,832,967 $ 2,826,985 Cost of sales 1,329,495 1,249,099 2,493,487 2,412,967 Gross profit 181,897 212,375 339,480 414,018 Selling, general and administrative 47,922 91,280 128,330 181,626 Research and development 42,008 39,568 87,660 77,739 Total operating expenses 89,930 130,848 215,990 259,365 Operating income 91,967 81,527 123,490 154,653 Interest expense 16,810 15,805 33,619 32,244 Other (income) expense, net (8,057 ) (15,848 ) (19,132 ) (31,143 ) Total other expense, net 8,753 (43 ) 14,487 1,101 Income before taxes 83,214 81,570 109,003 153,552 Income tax expense 28,162 14,312 32,098 26,508 Net income 55,052 67,258 76,905 127,044 Net income attributable to non-controlling interests (635 ) (361 ) (1,360 ) (1,250 ) Net income attributable to Amkor $ 54,417 $ 66,897 $ 75,545 $ 125,794 Net income attributable to Amkor per common share: Basic $ 0.22 $ 0.27 $ 0.31 $ 0.51 Diluted $ 0.22 $ 0.27 $ 0.30 $ 0.51 Shares used in computing per common share amounts: Basic 247,090 246,228 246,973 246,118 Diluted 247,806 247,860 247,842 247,790 AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,527,384 $ 1,133,553 Short-term investments 516,430 512,984 Accounts receivable, net of allowances 1,125,586 1,055,013 Inventories 375,249 310,910 Other current assets 79,994 61,012 Total current assets 3,624,643 3,073,472 Property, plant and equipment, net 3,802,045 3,576,148 Operating lease right of use assets 98,415 109,730 Goodwill 19,588 17,947 Restricted cash 755 759 Other assets 160,180 166,272 Total assets $ 7,705,626 $ 6,944,328 LIABILITIES AND EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 374,855 $ 236,029 Trade accounts payable 760,108 712,887 Capital expenditures payable 411,703 123,195 Short-term operating lease liability 24,896 26,827 Accrued expenses 344,100 356,337 Total current liabilities 1,915,662 1,455,275 Long-term debt 1,198,190 923,431 Pension and severance obligations 81,936 70,594 Long-term operating lease liabilities 51,599 57,983 Other non-current liabilities 226,165 253,880 Total liabilities 3,473,552 2,761,163 Stockholders’ equity: Preferred stock — — Common stock 294 293 Additional paid-in capital 2,041,548 2,031,643 Retained earnings 2,369,797 2,335,132 Accumulated other comprehensive income (loss) 12,299 7,510 Treasury stock (226,514 ) (225,033 ) Total Amkor stockholders’ equity 4,197,424 4,149,545 Non-controlling interests in subsidiaries 34,650 33,620 Total equity 4,232,074 4,183,165 Total liabilities and equity $ 7,705,626 $ 6,944,328 AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) For the Six Months Ended June 30 , 2025 2024 Cash flows from operating activities: Net income $ 76,905 $ 127,044 Depreciation and amortization 312,663 294,874 Other operating activities and non-cash items 1,312 17,966 Changes in assets and liabilities (108,268 ) (52,816 ) Net cash provided by operating activities 282,612 387,068 Cash flows from investing activities: Payments for property, plant and equipment (226,086 ) (262,543 ) Proceeds from sale of property, plant and equipment 4,762 4,813 Proceeds from foreign exchange forward contracts 41,920 5,088 Payments for foreign exchange forward contracts (28,967 ) (43,091 ) Payments for short-term investments (331,393 ) (279,526 ) Proceeds from sale of short-term investments 76,021 30,914 Proceeds from maturities of short-term investments 256,266 263,932 Other investing activities 1,680 5,354 Net cash used in investing activities (205,797 ) (275,059 ) Cash flows from financing activities: Proceeds from short-term debt — 5,012 Payments of short-term debt — (8,055 ) Proceeds from long-term debt 500,000 58,727 Payments of long-term debt (112,163 ) (116,921 ) Payments of finance lease obligations (30,627 ) (38,678 ) Payments of dividends (40,860 ) (38,778 ) Other financing activities (8,130 ) 216 Net cash provided by (used in) financing activities 308,220 (138,477 ) Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash 8,792 (13,724 ) Net increase (decrease) in cash, cash equivalents and restricted cash 393,827 (40,192 ) Cash, cash equivalents and restricted cash, beginning of period 1,134,312 1,120,617 Cash, cash equivalents and restricted cash, end of period $ 1,528,139 $ 1,080,425 Forward-Looking Statement Disclaimer This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following: dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions; changes in costs, quality, availability and delivery times of raw materials, components and equipment; fluctuations in operating results and cash flows; competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries and contract manufacturers; our substantial investments in equipment and facilities to support the demand of our customers; warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business; difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs; our absence of backlog and the short-term nature of our customers’ commitments; the historical downward pressure on the prices of our packaging and test services; fluctuations in our manufacturing yields; a downturn or lower sales to customers in the automotive industry; dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive; difficulty funding our liquidity needs; challenges with integrating diverse operations; dependence on international factories and operations and risks relating to trade restrictions and regional conflict, including restrictive trade barriers, export controls, tariffs, customs and duties; our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies; our continuing development and implementation of changes to, and maintenance and security of, our information technology systems; restrictive covenants in the indentures and agreements governing our current and future indebtedness; our substantial indebtedness; fluctuations in interest rates and changes in credit risk; the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval; the possibility that we may decrease or suspend our quarterly dividend; difficulty attracting, retaining or replacing qualified personnel; maintaining an effective system of internal controls; any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets; environmental, health and safety liabilities and expenditures; conditions and obligations in connection with the receipt of government awards and incentives; and natural disasters and other calamities, health conditions or pandemics, political instability, hostilities or other disruptions. Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law. View source version on businesswire.com : https://www.businesswire.com/news/home/20250728133188/en/ Jennifer Jue Vice President, Investor Relations and Finance 480-786-7594 [email protected] Source: Amkor Technology, Inc.

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