Amkor Technology Reports Financial Results for the Second Quarter 2025

Business Wire

28-07-2025

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
(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
(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.
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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.
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:
Shares used in computing per common share amounts:
Basic
247,090
246,228
246,973
246,118
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AMKOR TECHNOLOGY, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
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
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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
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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.