Q4 2025 Onto Innovation Inc Earnings Call Transcript
Key Points
- Onto Innovation Inc (ONTO) reported record revenue of $267 million for the fourth quarter, marking a 22% increase from the previous quarter.
- The company achieved a record cash generation of $95 million in the quarter.
- Advanced packaging business grew over 25% sequentially, driven by demand for Dragonfly inspection and Iris films metrology.
- Onto Innovation Inc (ONTO) secured a volume purchase agreement valued at over $240 million, covering Dragonfly 2D and 3D bump metrology demand through 2027.
- The company expects advanced packaging revenue to grow over 30% in 2026, setting a new revenue record for this market.
- Power semiconductor revenue is expected to decline around 10% in 2026 due to weakening demand for EVs and slowing infrastructure spending.
- Semi lab, acquired in mid-November, may experience a decrease in revenue from original planning due to market challenges.
- The company faces challenges with supply chain constraints, particularly in precision optics, affecting lead times.
- There is uncertainty in the timing of advanced nodes growth, with several factories expected to open but timing remains unclear.
- The company anticipates a seasonal decline in power semiconductor revenue in the first quarter of 2026.
Good day, and welcome to the Onto Innovation fourth-quarter earnings release conference call. Today's conference is being recorded.
At this time, I'd like to turn the conference over to Sidney Ho. Please go ahead.
Thank you, Lisa, and good afternoon, everyone. Onto Innovation issued its 2025 fourth quarter financial results this afternoon shortly after the market closed. If you did not receive a copy of the release, please refer to the company's website where a copy of the release is posted.
Joining us on the call today are Michael Plisinski, Chief Executive Officer; Brian Roberts Chief Financial Officer. I'd like to remind you that the statements made by management on this call will contain forward-looking statements within the meaning of the federal securities laws.
Those statements are subject to a range of changes, risks and uncertainties that can cause actual results to vary materially. For more information regarding the risk factors that may impact Onto
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