Q2 2025 GlobalFoundries Inc Earnings Call Transcript

Aug 05, 2025 / 12:30PM GMT

Release Date Price: €28.33 (-15.98%)

Transcript

Key Points

Positve

GLOBALFOUNDRIES Inc (GFS) exceeded the guidance midpoint for revenue, gross margin, and operating margin in Q2 2025.
The company generated $277 million of adjusted free cash flow in the second quarter.
Automotive and communications infrastructure and data center end markets demonstrated double-digit year-over-year revenue growth for the third consecutive quarter.
GLOBALFOUNDRIES Inc (GFS) secured nearly 200 design wins across end markets, setting a new quarterly record.
The acquisition of MIPS is expected to enhance GLOBALFOUNDRIES Inc (GFS)'s offerings in AI and processor IP, potentially adding significant revenue and margin improvements.

Negative

Smart mobile devices and home and industrial IoT end markets experienced slower recovery due to geopolitical uncertainties and global trade tensions.
Year-over-year ASP declines are expected in the second half of 2025 for the smart mobile devices end market.
The company anticipates a slower-than-expected market recovery, impacting Q3 2025 revenue guidance.
Utilization rates are expected to remain in the low to mid-80s, which may limit gross margin expansion.
GLOBALFOUNDRIES Inc (GFS) faces potential supply chain cost impacts associated with tariff uncertainties, estimated at $20 million in the second half of 2025.

Operator

Thank you for standing by, and welcome to the GlobalFoundries conference call to review second quarter of fiscal 2025 financial results. (Operator Instructions). As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Sam Franklin, Vice President, Business Finance and Investor Relations.

Please go ahead, sir.

Sam Franklin

GlobalFoundries Inc - Senior Vice President of Business Finance & Operations

Thank you, operator. Good morning, everyone, and welcome to GlobalFoundries second quarter 2025 earnings call. On the call with me today are Tim Breen, CEO; Niels Anderskouv, President and Chief Operating Officer; and John Hollister, CFO. A short while ago, we released GF's second quarter financial results, which are available on our website at investors.gf.com, along with today's accompanying slide presentation. This call is being recorded, and a replay will be made available on our Investor Relations web page.

During this call, we will present both IFRS and non-IFRS financial measures,

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