Globalfoundries Inc
NASDAQ:GFS

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Globalfoundries Inc
NASDAQ:GFS
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Price: 34.17 USD -1.84% Market Closed
Market Cap: 19B USD

Globalfoundries Inc
Investor Relations

GlobalFoundries Inc. emerged in the semiconductor industry landscape not just as a participant, but as a formidable player with a compelling origin story. Born out of AMD in 2009, it carved its identity amid the semiconductor manufacturing surge, positioning itself as a key supplier of microchips that drive a myriad of devices we depend on today. Headquartered in Malta, New York, the company finds strength in its global footprint, with multiple manufacturing plants spread across the United States, Europe, and Asia. GlobalFoundries has capitalized on the increasing digitalization across industries, offering a range of custom silicon solutions. Through a strategy that focuses on differentiated technologies rather than chasing the latest process node, it serves a diverse clientele spanning sectors such as automotive, IoT, and data centers.

At the heart of GlobalFoundries' business model is the operation of its foundry services, where it uses sophisticated technology to design, manufacture, and sell semiconductor wafers to other companies. These specialized wafers act as the fundamental building blocks in electronic circuits that power everything from smartphones to cars. The company earns revenue through complex partnerships and contracts, where it leverages its engineering expertise and robust technology portfolio to deliver custom-designed chips tailored to the specific needs of its clients. By continuously investing in research and development, GlobalFoundries remains competitive in the fast-paced semiconductor market, striving to meet the demands for more efficient and powerful semiconductor applications.

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Last Earnings Call
Fiscal Period
Q2 2025
Call Date
Aug 5, 2025
AI Summary
Q2 2025

Results Beat: GlobalFoundries delivered Q2 revenue, gross margin, and operating margin above guidance midpoints, with EPS exceeding the high end of guidance.

Growth Drivers: Automotive and communications infrastructure/data center end markets showed strong double-digit growth, offsetting ongoing weakness in smart mobile and IoT segments.

Outlook: Q3 guidance reflects slower-than-expected market recovery and customer volume adjustments, but management maintains a base case for fiscal 2025 revenue growth and over $1B adjusted free cash flow.

Gross Margin Trajectory: Gross margin rose to 25.2% in Q2 and is guided to improve further in Q3 and Q4, though management is cautious on reaching a 30% exit rate by year-end.

ASP Strategy: ASPs are down mid-single digits for 2025, mainly due to strategic adjustments in the smart mobile segment with dual-sourced customers to secure long-term share.

China & MIPS Moves: GF announced a China manufacturing partnership for automotive chips and a planned acquisition of MIPS to strengthen its edge AI portfolio.

Utilization: Factory utilization improved to the low 80s in Q2, expected to rise to the mid-80s in the second half, supporting margin expansion.

Non-Wafer Revenue: Non-wafer revenue is expected to increase in Q4, contributing to a strong finish for the year.

Key Financials
Revenue
$1.688B
Gross Margin
25.2%
Operating Margin
15.3%
Net Income
$234M
Diluted EPS
$0.42
Wafers Shipped
581,000 (300-millimeter equivalent)
Adjusted Free Cash Flow
$277M
CapEx
$159M in Q2 (9% of revenue)
Automotive Revenue
22% of total revenue
Smart Mobile Devices Revenue
40% of total revenue
Home and Industrial IoT Revenue
18% of total revenue
Communications Infrastructure and Data Center Revenue
10% of total revenue
Factory Utilization
Low 80s %
Cash, Cash Equivalents and Marketable Securities
$3.9B
Total Debt
$1.2B
Operating Expenses
$167M
Earnings Call Recording
Other Earnings Calls

Management

Dr. Thomas H. Caulfield DES, Ph.D.
President, CEO & Director
No Bio Available
Mr. John C. Hollister CPA
Chief Financial Officer
No Bio Available
Mr. Timothy Graham Breen
Chief Operating Officer & Director
No Bio Available
Mr. Greg Pedersen
Chief Accounting Officer
No Bio Available
Mr. Gregg Bartlett
Chief Technology Officer
No Bio Available
Mr. Brad Clay
Chief Information Officer
No Bio Available
Mr. Sam Franklin
Vice President of Business Finance & Investor Relations
No Bio Available
Mr. Saam Azar J.D.
Senior VP, Chief Legal Officer & Secretary
No Bio Available
Ms. Laurie Kelly
Chief Communications Officer
No Bio Available
Ms. Nancy Kelly
Chief Marketing Officer
No Bio Available

Contacts

Address
NEW YORK
Malta
400 Stonebreak Road Extension
Contacts
+15183059013.0
gf.com