AMKR Amkor Technology Inc

Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the first quarter ended March 31, 2025.

First Quarter 2025 Highlights

• Net sales $1.32 billion
• Gross profit $158 million, operating income $32 million
• Net income $21 million, earnings per diluted share $0.09
• EBITDA $197 million

“Amkor delivered first quarter results in line with expectations, with revenue of $1.32 billion and EPS of $0.09,” said Giel Rutten, Amkor’s president and chief executive officer. “We are closely monitoring the evolving landscape with tariffs and trade regulations and potential impacts on our customers’ supply chains. Our diversified global footprint and long-standing partnerships allow us to help our customers work through complexity and uncertainty. Within this dynamic environment, our focus remains on staying agile and delivering value by executing on our long-term strategy.”

Quarterly Financial Results

 

($ in millions, except per share data)

 

Q1 2025

 

Q4 2024

 

Q1 2024

Net sales

 

$1,322

 

$1,629

 

$1,366

Gross margin

 

11.9%

 

15.1%

 

14.8%

Operating income

 

$32

 

$134

 

$73

Operating income margin

 

2.4%

 

8.3%

 

5.4%

Net income attributable to Amkor

 

$21

 

$106

 

$59

Earnings per diluted share

 

$0.09

 

$0.43

 

$0.24

EBITDA (1)

 

$197

 

$302

 

$233

(1) EBITDA is a non-GAAP measure. The reconciliation to the comparable GAAP measure is included below under “Selected Operating Data.”

At March 31, 2025, total cash and short-term investments was $1.6 billion, and total debt was $1.1 billion.

The company paid a quarterly dividend of $0.08269 per share on April 2, 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 second quarter 2025 (unless otherwise noted):

• Net sales of $1.375 billion to $1.475 billion
• Gross margin of 11.5% to 13.5%
• Net income of $17 million to $57 million, or $0.07 to $0.23 per diluted share
• Full year 2025 capital expenditures of approximately $850 million

Conference Call Information

Amkor will conduct a conference call on Monday, April 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. is the world's largest U.S. headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world's leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, computing, automotive and industrial and consumer markets, including smartphones, data centers, artificial intelligence, electric vehicles and wearables. Amkor's operational base includes production facilities, research and development centers, and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com.

AMKOR TECHNOLOGY, INC.

Selected Operating Data

 

 

Q1 2025

 

Q4 2024

 

Q1 2024

Net Sales Data:

 

 

 

 

 

Net sales (in millions):

 

 

 

 

 

Advanced products (1)

$

1,064

 

 

$

1,357

 

 

$

1,070

 

Mainstream products (2)

 

258

 

 

 

272

 

 

 

296

 

Total net sales

$

1,322

 

 

$

1,629

 

 

$

1,366

 

 

 

 

 

 

 

Packaging services

 

88

%

 

 

88

%

 

 

87

%

Test services

 

12

%

 

 

12

%

 

 

13

%

 

 

 

 

 

 

Net sales from top ten customers

 

71

%

 

 

73

%

 

 

70

%

 

 

 

 

 

 

End Market Distribution Data:

 

 

 

 

 

Communications (smartphones, tablets)

 

40

%

 

 

44

%

 

 

47

%

Computing (data center, infrastructure, PC/laptop, storage)

 

22

%

 

 

21

%

 

 

17

%

Automotive, industrial and other (ADAS, electrification, infotainment, safety)

 

21

%

 

 

17

%

 

 

22

%

Consumer (AR & gaming, connected home, home electronics, wearables)

 

17

%

 

 

18

%

 

 

14

%

Total

 

100

%

 

 

100

%

 

 

100

%

 

 

 

 

 

 

Gross Margin Data:

 

 

 

 

 

Net sales

 

100.0

%

 

 

100.0

%

 

 

100.0

%

Cost of sales:

 

 

 

 

 

Materials

 

52.4

%

 

 

54.8

%

 

 

51.9

%

Labor

 

12.0

%

 

 

9.9

%

 

 

11.2

%

Depreciation

 

10.6

%

 

 

8.4

%

 

 

9.5

%

Other manufacturing

 

13.1

%

 

 

11.8

%

 

 

12.6

%

Gross margin

 

11.9

%

 

 

15.1

%

 

 

14.8

%

(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.

AMKOR TECHNOLOGY, INC.

Selected Operating Data

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)

Q1 2025

 

Q4 2024

 

Q1 2024

EBITDA Data:

 

 

 

 

 

Net income

$

22

 

$

106

 

$

60

Plus: Interest expense

 

17

 

 

17

 

 

16

Plus: Income tax expense

 

4

 

 

30

 

 

12

Plus: Depreciation & amortization

 

154

 

 

149

 

 

145

EBITDA

$

197

 

$

302

 

$

233

AMKOR TECHNOLOGY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)

 

 

 

 

 

For the Three Months Ended March 31,

 

2025

 

2024

Net sales

$

1,321,575

 

 

$

1,365,511

 

Cost of sales

 

1,163,992

 

 

 

1,163,868

 

Gross profit

 

157,583

 

 

 

201,643

 

Selling, general and administrative

 

80,408

 

 

 

90,346

 

Research and development

 

45,652

 

 

 

38,171

 

Total operating expenses

 

126,060

 

 

 

128,517

 

Operating income

 

31,523

 

 

 

73,126

 

Interest expense

 

16,809

 

 

 

16,439

 

Other (income) expense, net

 

(11,075

)

 

 

(15,295

)

Total other expense, net

 

5,734

 

 

 

1,144

 

Income before taxes

 

25,789

 

 

 

71,982

 

Income tax expense

 

3,936

 

 

 

12,196

 

Net income

 

21,853

 

 

 

59,786

 

Net income attributable to non-controlling interests

 

(725

)

 

 

(889

)

Net income attributable to Amkor

$

21,128

 

 

$

58,897

 

 

 

 

 

Net income attributable to Amkor per common share:

 

 

 

Basic

$

0.09

 

 

$

0.24

 

Diluted

$

0.09

 

 

$

0.24

 

 

 

 

 

Shares used in computing per common share amounts:

 

 

 

Basic

 

246,854

 

 

 

246,008

 

Diluted

 

247,845

 

 

 

247,614

 

AMKOR TECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

 

 

March 31, 2025

 

December 31, 2024

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

1,057,560

 

 

$

1,133,553

 

Short-term investments

 

505,181

 

 

 

512,984

 

Accounts receivable, net of allowances

 

1,052,873

 

 

 

1,055,013

 

Inventories

 

326,185

 

 

 

310,910

 

Other current assets

 

49,325

 

 

 

61,012

 

Total current assets

 

2,991,124

 

 

 

3,073,472

 

Property, plant and equipment, net

 

3,641,936

 

 

 

3,576,148

 

Operating lease right of use assets

 

104,160

 

 

 

109,730

 

Goodwill

 

18,813

 

 

 

17,947

 

Restricted cash

 

768

 

 

 

759

 

Other assets

 

164,440

 

 

 

166,272

 

Total assets

$

6,921,241

 

 

$

6,944,328

 

LIABILITIES AND EQUITY

Current liabilities:

 

 

 

Short-term borrowings and current portion of long-term debt

$

236,459

 

 

$

236,029

 

Trade accounts payable

 

608,464

 

 

 

712,887

 

Capital expenditures payable

 

250,718

 

 

 

123,195

 

Short-term operating lease liability

 

25,604

 

 

 

26,827

 

Accrued expenses

 

332,731

 

 

 

356,337

 

Total current liabilities

 

1,453,976

 

 

 

1,455,275

 

Long-term debt

 

912,863

 

 

 

923,431

 

Pension and severance obligations

 

73,421

 

 

 

70,594

 

Long-term operating lease liabilities

 

54,535

 

 

 

57,983

 

Other non-current liabilities

 

235,856

 

 

 

253,880

 

Total liabilities

 

2,730,651

 

 

 

2,761,163

 

 

 

 

 

Stockholders’ equity:

 

 

 

Preferred stock

 

—

 

 

 

—

 

Common stock

 

293

 

 

 

293

 

Additional paid-in capital

 

2,036,608

 

 

 

2,031,643

 

Retained earnings

 

2,335,830

 

 

 

2,335,132

 

Accumulated other comprehensive income (loss)

 

10,031

 

 

 

7,510

 

Treasury stock

 

(226,352

)

 

 

(225,033

)

Total Amkor stockholders’ equity

 

4,156,410

 

 

 

4,149,545

 

Non-controlling interests in subsidiaries

 

34,180

 

 

 

33,620

 

Total equity

 

4,190,590

 

 

 

4,183,165

 

Total liabilities and equity

$

6,921,241

 

 

$

6,944,328

 

AMKOR TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

 

For the Three Months Ended March 31,

 

2025

 

2024

Cash flows from operating activities:

 

 

 

Net income

$

21,853

 

 

$

59,786

 

Depreciation and amortization

 

153,821

 

 

 

144,925

 

Other operating activities and non-cash items

 

5,967

 

 

 

14,100

 

Changes in assets and liabilities

 

(157,492

)

 

 

(56,499

)

Net cash provided by operating activities

 

24,149

 

 

 

162,312

 

Cash flows from investing activities:

 

 

 

Payments for property, plant and equipment

 

(79,897

)

 

 

(96,169

)

Proceeds from sale of property, plant and equipment

 

4,209

 

 

 

3,439

 

Proceeds from foreign exchange forward contracts

 

16,674

 

 

 

740

 

Payments for foreign exchange forward contracts

 

(15,992

)

 

 

(24,596

)

Payments for short-term investments

 

(169,720

)

 

 

(111,760

)

Proceeds from sale of short-term investments

 

32,345

 

 

 

16,014

 

Proceeds from maturities of short-term investments

 

147,825

 

 

 

121,684

 

Other investing activities

 

1,502

 

 

 

4,545

 

Net cash used in investing activities

 

(63,054

)

 

 

(86,103

)

Cash flows from financing activities:

 

 

 

Proceeds from short-term debt

 

—

 

 

 

5,012

 

Payments of short-term debt

 

—

 

 

 

(5,669

)

Payments of long-term debt

 

(25,493

)

 

 

(29,100

)

Payments of finance lease obligations

 

(15,659

)

 

 

(19,684

)

Payments of dividends

 

—

 

 

 

(19,383

)

Other financing activities

 

(1,099

)

 

 

(1,053

)

Net cash used in financing activities

 

(42,251

)

 

 

(69,877

)

Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash

 

5,172

 

 

 

(8,164

)

Net decrease in cash, cash equivalents and restricted cash

 

(75,984

)

 

 

(1,832

)

Cash, cash equivalents and restricted cash, beginning of period

 

1,134,312

 

 

 

1,120,617

 

Cash, cash equivalents and restricted cash, end of period

$

1,058,328

 

 

$

1,118,785

 

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/20250428983853/en/

Jennifer Jue Vice President, Investor Relations and Finance 480-786-7594 jennifer.jue@amkor.com