GlobalFoundries Reports First Quarter 2025 Financial Results

MALTA, N.Y., May 06, 2025 (GLOBE NEWSWIRE) -- GLOBALFOUNDRIES Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the first quarter ended March 31, 2025. Key First Quarter Financial Highlights Revenue of $1.585 billionGross margin of 22.4% and Non-IFRS gross margin(1) of 23.9%Operating margin of 9.5% and Non-IFRS operating margin(1) of 13.4%Net income of $211 million and Non-IFRS net income(1) of $189 millionDiluted earnings per share of $0.38 and Non-IFRS diluted earnings per share(1) of $0.34Non-IFRS adjusted EBITDA(1) of $558 millionEnding cash, cash equivalents and marketable securities of $3.7 billionNet cash provided by operating activities of $331 million and Non-IFRS adjusted free cash flow(1) of $165 million "In the first quarter, the GF team delivered strong financial results at the high end of the Non-IFRS guidance ranges for revenue, gross margin, and earnings per share,” said Tim Breen, CEO of GF. "A testament to our solid execution, operational excellence, and robust design wins, our Automotive, Communications Infrastructure and Datacenter, and Home and Industrial IoT end markets grew year over year in the first quarter. From autonomous vehicles to satellite communications to optical networking, GF continues to build momentum in critical applications with robust growth prospects." Recent Business Highlights GF and indie Semiconductor announced a strategic partnership to develop high-performance radar systems-on-chip (SoC). Built on GF's automotive-qualified 22FDX® platform, these solutions will target 77 GHz and 120 GHz radar applications to enable safety-critical advanced driver assistance systems with low cost, small footprint, and efficient power consumption. Ayar Labs announced that the industry's first Universal Chiplet Interconnect Express (UCIe) optical interconnect chiplet will utilize GF's monolithic photonics platform. GF's technology uniquely enables Ayar Lab's solution to enhance AI infrastructure performance by driving high-speed data over long distances, while reducing latency and power consumption. In April, Bosch announced at Auto Shanghai the launch of its next generation single chip radar sensor, which reliably, precisely, and quickly detects objects for assisted and automated driving. As previously announced, GF continues its partnership with Bosch, enabling this high-performance, high-efficiency automotive radar technology with GF's 22FDX platform. (1) See “Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. GLOBALFOUNDRIES Inc.Summary Quarterly Results (Unaudited, in millions, except per share amounts and wafer shipments) Year-over-year Sequential Q1'25 Q4'24 Q1'24 Q1'25 vs Q1'24 Q1'25 vs Q4'24 Net revenue $1,585 $1,830 $1,549 $36 2% $(245) (13)% Gross profit $355 $449 $393 $(38) (10)% $(94) (21)%Gross margin 22.4% 24.5% 25.4% (300)bps (210)bps Non-IFRS gross profit(1) $379 $464 $405 $(26) (6)% $(85) (18)%Non-IFRS gross margin(1) 23.9% 25.4% 26.1% (220)bps (150)bps Operating profit (loss) $151 $(701) $147 $4 3% $852 122%Operating (loss) margin 9.5% (38.3)% 9.5% 0bps +4,780bps Non-IFRS operating profit(1) $213 $285 $187 $26 14% $(72) (25)%Non-IFRS operating margin(1) 13.4% 15.6% 12.1% +130bps (220)bps Net income (loss) $211 $(729) $134 $77 57% $940 129%Net income (loss) margin 13.3% (39.8)% 8.7% +460bps +5,310bps Non-IFRS net income(1) $189 $256 $174 $15 9% $(67) (26)%Non-IFRS net income margin(1) 11.9% 14.0% 11.2% +70bps (210)bps Diluted earnings (loss) per share ("EPS") $0.38 $(1.32) $0.24 $0.14 58% $1.70 129% Non-IFRS diluted EPS(1) $0.34 $0.46 $0.31 $0.03 10% $(0.12) (26)% Non-IFRS adjusted EBITDA(1) $558 $661 $577 $(19) (3)% $(103) (16)%Non-IFRS adjusted EBITDA margin(1) 35.2% 36.1% 37.2% (200)bps (90)bps Cash from operating activities $331 $457 $488 $(157) (32)% $(126) (28)% Wafer shipments (300mm equivalent) (in thousands) 543 595 463 80 17% (52) (9)% (1) See “Reconciliation of IFRS to Non-IFRS" for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. GLOBALFOUNDRIES Inc.Summary of Second Quarter 2025 Guidance(1)(Unaudited, in millions, except per share amounts) IFRS Share-basedcompensation(3) Non-IFRS(2)Net revenue$1,675 ± $25 Gross margin(2)24.1% ± 100bps ~90bps 25.0% ± 100bpsOperating expenses$222 ± $10 ~$37 $185 ± $10Operating margin(2) 10.8% ± 180bps ~320bps 14.0% ± 180bpsDiluted EPS(2)(4)$0.27 ± $0.06 ~$0.09 $0.36 ± $0.05Fully Diluted Share Count~560 (1) The Guidance provided contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The Guidance includes management's beliefs and assumptions and is based on information that is available as of the date of this release. (2) Non-IFRS gross margin, Non-IFRS operating margin, Non-IFRS operating expenses and Non-IFRS diluted EPS are Non-IFRS measures and, for purposes of the Guidance only, are defined as gross profit as a percent of revenue, operating profit as a percent of revenue, operating expenses and diluted EPS, all before share-based compensation, respectively. See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. (3) We expect share-based compensation of $15 million and $37 million in cost of revenue and operating expenses, respectively. The Non-IFRS margin impacts are calculated by dividing share-based compensation by net revenue, and the Non-IFRS diluted EPS impact is calculated by dividing share-based compensation by the fully diluted share count. (4) Included in diluted EPS is net interest income (expense) and other income (expense) which we estimate will be between $3 million and $11 million for the second quarter 2025. Also included in diluted EPS is income tax expense which we estimate will be between $33 million and $47 million for the second quarter 2025. GLOBALFOUNDRIES Inc.Consolidated Statements of Operations(Unaudited, in millions, except for per share amounts) Three Months Ended March 31, 2025 March 31, 2024 Net revenue $1,585 $1,549 Cost of revenue 1,230 1,156 Gross profit $355 $393 Operating expenses: Research and development 127 124 Selling, general and administrative 77 122 Total operating expenses $204 $246 Operating profit $151 $147 Finance income (expense), net 14 10 Other income (expense) 30 (2)Income tax (expense) benefit 16 (21)Net income $211 $134 Attributable to: Shareholders of GLOBALFOUNDRIES Inc. 210 133 Non-controlling interest 1 1 EPS: Basic $0.38 $0.24 Diluted $0.38 $0.24 Shares used in EPS calculation: Basic 554 555 Diluted 557 558 GLOBALFOUNDRIES Inc.Condensed Consolidated Statements of Financial Position(Unaudited, in millions) March 31, 2025 December 31, 2024 Assets: Cash and cash equivalents $1,596 $2,192 Marketable securities 1,281 1,194 Receivables, prepayments and other 1,415 1,406 Inventories 1,813 1,624 Current assets $6,105 $6,416 Property, plant and equipment, net $7,626 $7,762 Marketable securities 820 839 Right-of-use assets 499 498 Deferred tax assets 250 188 Other assets 1,179 1,096 Non-current assets $10,374 $10,383 Total assets $16,479 $16,799 Liabilities and equity: Current portion of long-term debt $57 $753 Other current liabilities 2,371 2,291 Current liabilities $2,428 $3,044 Non-current portion of long-term debt $1,071 $1,053 Non-current portion of lease obligations 426 424 Other liabilities 1,450 1,454 Non-current liabilities $2,947 $2,931 Total liabilities $5,375 $5,975 Shareholders' equity: Common stock / additional paid-in capital $24,057 $24,025 Accumulated deficit (13,056) (13,266)Accumulated other comprehensive income 53 17 Non-controlling interest 50 48 Total liabilities and equity $16,479 $16,799 GLOBALFOUNDRIES Inc.Condensed Consolidated Statements of Cash Flows(Unaudited, in millions) Three Months Ended March 31,2025 March 31,2024 Operating Activities: Net income $211 $134 Depreciation and amortization 352 392 Finance (income) expense, net and other 9 6 Net change in working capital (144) (97)Other non-cash operating activities (97) 53 Net cash provided by operating activities $331 $488 Investing Activities: Purchases of property, plant and equipment and intangible assets $(166) $(227)Acquisition of joint venture interest, net of cash acquired (19) — Net purchases of marketable securities (61) (371)Other investing activities 35 (2)Net cash used in investing activities $(211) $(600) Financing Activities: Proceeds from issuance of equity instruments $16 $23 Proceeds (repayment) of debt, net (733) (50)Net cash used in financing activities $(717) $(27)Effect of exchange rate changes 1 (1)Net change in cash and cash equivalents $(596) $(140)Cash and cash equivalents at the beginning of the period 2,192 2,387 Cash and cash equivalents at the end of the period $1,596 $2,247 GLOBALFOUNDRIES Inc.Reconciliation of IFRS to Non-IFRS(Unaudited, in millions, except for per share amounts) Three Months Ended March 31, 2025 Grossprofit Selling,General &Administrative Research &Development Operatingprofit OtherIncome(Expense) Income tax(expense)benefit Netincome DilutedEPSAs Reported $355 $77 $127 $151 $30 $16 $211 $0.38 IFRS margins(1) 22.4% 9.5% 13.3% Share-based compensation 13 (20) (7) 40 — (2) 38 0.07 Structural optimization(2) 11 (5) (5) 21 — (3) 18 0.03 Amortization of acquired intangibles and other acquisition related charges — — (1) 1 (31) 6 (24) (0.04)Revaluation of equity investments — — — — (6) — (6) (0.01)Tax matters(3) — — — — — (48) (48) (0.09)Non-IFRS measures(1) $379 $52 $114 $213 $(7) $(31) $189 $0.34 Non-IFRS margins(1) 23.9% 13.4% 11.9% Three Months Ended December 31, 2024 Grossprofit Selling,General &Administrative Research &Development Operatingprofit OtherIncome(Expense) Income tax(expense)benefit Netincome DilutedEPSAs Reported $449 $93 $121 $(701) $(1) $(42) $(729) $(1.32)IFRS margins(1) 24.5% (38.3)% (39.8)% Share-based compensation 15 (22) (8) 45 — — 45 0.09 Structural optimization(2) — (2) (1) 3 — (1) 2 0.01 Amortization of acquired intangibles and other acquisition related charges — — (2) 2 — — 2 — Impairment of long-lived assets — — — 935 — — 935 1.68 Restructuring charges — — — 1 — — 1 — Non-IFRS measures(1) $464 $69 $110 $285 $(1) $(43) $256 $0.46 Non-IFRS margins(1) 25.4% 15.6% 14.0% Three Months Ended March 31, 2024 Grossprofit Selling,General &Administrative Research &Development Operatingprofit OtherIncome(Expense) Income tax(expense)benefit Netincome DilutedEPSAs Reported $393 $122 $124 $147 $(2) $(21) $134 $0.24 IFRS margins(1) 25.4% 9.5% 8.7% Share based compensation 12 (21) (7) 40 — — 40 0.07 Non-IFRS measures(1) $405 $101 $117 $187 $(2) $(21) $174 $0.31 Non-IFRS margins(1) 26.1% 12.1% 11.2% (1) See "Financial Measures (Non-IFRS)" for further discussion on these Non-IFRS measures and why we believe they are useful. (2) Structural optimization represents costs associated with employee workforce reduction and manufacturing footprint alignment. (3) Comprised of net deferred tax asset recognition and foreign exchange rate impact. GLOBALFOUNDRIES Inc.Reconciliation of IFRS to Non-IFRSNon-IFRS Adjusted Free Cash Flow(1)(Unaudited, in millions) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net cash provided by operating activities $331 $457 $488 Less: Purchases of property, plant and equipment and intangible assets (166) (135) (227)Add: Proceeds from government grants — 6 — Non-IFRS adjusted free cash flow(1) $165 $328 $261 (1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful. Reconciliation of IFRS to Non-IFRSNon-IFRS Adjusted EBITDA(1)(Unaudited, in millions) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Net revenue $1,585 $1,830 $1,549 Net income (loss) 211 (729) 134 Net income (loss) margin 13.3% (39.8)% 8.7%Depreciation and amortization 352 378 392 Finance expense 25 34 37 Finance income (39) (49) (47)Income tax expense (benefit) (16) 42 21 Share-based compensation 40 45 40 Restructuring charges — 1 — Impairment of long-lived assets — 935 — Structural optimization 21 3 — Revaluation of equity investments (6) — — Other acquisition related charges (30) 1 — Non-IFRS adjusted EBITDA(1) $558 $661 $577 Non-IFRS adjusted EBITDA margin(1) 35.2% 36.1% 37.2% (1) See "Financial Measures (Non-IFRS)" for further discussion on this Non-IFRS measure and why we believe it is useful. GLOBALFOUNDRIES Inc. Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with International Financial Reporting Standards ("IFRS"), this press release includes the following Non-IFRS financial measures: Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS operating expense, Non-IFRS net income, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense), Non-IFRS diluted earnings per share (“EPS”), Non-IFRS adjusted EBITDA, Non-IFRS adjusted free cash flow and any related margins. We define each of Non-IFRS gross profit, Non-IFRS selling, general and administrative, Non-IFRS research and development, Non-IFRS operating profit, Non-IFRS other income (expense), Non-IFRS income tax benefit (expense) and Non-IFRS net income as gross profit, selling, general and administrative, research and development, operating profit, other income (expense), income tax benefit (expense), and net income, respectively, adjusted for share-based compensation, structural optimization, amortization of acquired intangibles and other acquisition related charges, impairment of long-lived assets, revaluation of equity investments, restructuring charges, tax matters, and any associated income tax effects. We define Non-IFRS operating expense as Non-IFRS gross profit minus Non-IFRS operating profit. We define Non-IFRS diluted EPS as Non-IFRS net income divided by the diluted shares outstanding. We define Non-IFRS adjusted free cash flow as cash flow provided by (used in) operating activities less purchases of property, plant and equipment and intangible assets plus proceeds from government grants related to capital expenditures. We define Non-IFRS adjusted EBITDA as net income adjusted for the impact of finance expense, finance income, income tax expense (benefit), depreciation and amortization, share-based compensation, restructuring charges, impairment of long-lived assets; revaluation of equity investments, structural optimization and acquisition related charges. We define each of Non-IFRS gross margin, Non-IFRS operating margin, Non-IFRS net income margin and Non-IFRS adjusted EBITDA margin as Non-IFRS gross profit, Non-IFRS operating profit, Non-IFRS net income and Non-IFRS adjusted EBITDA, respectively, divided by net revenue. Any adjustments described above that are zero for a given period are excluded from the “Reconciliation of IFRS to Non-IFRS” table. See "Reconciliation of IFRS to Non-IFRS" section for a detailed reconciliation of Non-IFRS financial measures to the most directly comparable IFRS measure. We believe that in addition to our results determined in accordance with IFRS, these Non-IFRS financial measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These Non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. Management believes that Non-IFRS adjusted free cash flow as a Non-IFRS measure is helpful to investors as it provides insights into the nature and amount of cash the Company generates in the period. Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of Non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as comparative measures. Conference Call and Webcast Information GF will host a conference call with the financial community on Tuesday, May 6, 2025 at 8:30 a.m. U.S. Eastern Time (ET) to review the first quarter 2025 results in detail. Interested parties may join the scheduled conference call by registering at https://edge.media-server.com/mmc/p/jgpem5gd/. The call will be webcast and can be accessed from the GF Investor Relations website https://investors.gf.com. A replay of the call will be available on the GF Investor Relations website within 24 hours of the actual call. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-looking Statements and Third Party Data This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” "outlook," "on track" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by geopolitical conditions such as the ongoing political and trade tensions with China and the continuation of conflicts in Ukraine and Israel; political developments following the change in the U.S. administration; the imposition of trade controls, tariffs and counter-tariffs between the United States and its trade partners; the market for our products may develop or recover more slowly than expected or than it has in the past; we may fail to achieve the full benefits of our restructuring plan; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could result in a system disruption, loss of data or damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; global economic conditions could deteriorate, including due to rising inflation and any potential recession; the expected benefits of our announced partnerships may fail to materialize; and our expected results and planned expansions and operations may not proceed as planned if funding we expect to receive (including the planned awards under the U.S. CHIPS and Science Act and New York State Green CHIPS) is delayed or withheld for any reason. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them.Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2024 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission (SEC). Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov. For further information, please contact: Investor Relationsir@gf.com

GlobalFoundries Reports First Quarter 2025 Financial Results

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