GLOBALFOUNDRIES (GFS) FY Conference May 13, 2025 11:30 AM ET Speaker0 All right. Good morning and welcome to JPMorgan's fifty third Annual Technology Media and Communications Conference. Again, my name is Harlan Sur. I'm the semiconductor and semiconductor capital equipment analyst for the firm. Very pleased to have John Hollister, Chief Financial Officer at GlobalFoundries. For those of you that don't know, GlobalFoundries, third or fourth largest semiconductor foundry in the world, leader in specialty and ...

Core Viewpoint - GlobalFoundries is expected to rebound after hitting a bottom in early Q2 2025, driven by a return to growth as indicated by Q1 results and positive forecasts for acceleration [1] Financial Performance - GlobalFoundries reported Q1 revenue of $1.59 billion, marking a 2.6% year-over-year growth, the first increase in eight quarters, surpassing MarketBeat's consensus by 60 basis points [5] - Net income increased by 57%, with adjusted earnings exceeding consensus forecasts, indicating a healthy financial condition [7] - The automotive segment grew by 10%, while the communications segment surged by 45% [6] Guidance and Forecast - The company provided guidance for a 2.75% year-over-year growth, aligning with analyst consensus, with potential for outperformance [8] - The 12-month stock price forecast is set at $48.33, representing a 32.82% upside from the current price of $36.39 [5] Market Position and Trends - GlobalFoundries is well-positioned to benefit from the semiconductor market's search for alternative sources, with fabs located in Singapore, Europe, and the U.S., and ongoing expansion in the U.S. [9] - The stock is currently rated as a Moderate Buy, but there is a tepid initial analyst reaction with some price targets being lowered [2][10] Technical Outlook - The technical analysis suggests that GFS stock reached its bottom in early April and is beginning to rebound, although it remains below critical resistance levels [12] - A price movement above $37.50 could signal a bullish trend, potentially pushing the stock into the $40 to $45 range [13]

For the quarter ended March 2025, GlobalFoundries Inc. (GFS) reported revenue of $1.59 billion, up 2.3% over the same period last year. EPS came in at $0.34, compared to $0.31 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.58 billion, representing a surprise of +0.46%. The company delivered an EPS surprise of +21.43%, with the consensus EPS estimate being $0.28.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall S ...

Group 1: Earnings Performance - GlobalFoundries Inc. reported quarterly earnings of $0.34 per share, exceeding the Zacks Consensus Estimate of $0.28 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 21.43% [1] - The company posted revenues of $1.59 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.46%, and compared to year-ago revenues of $1.55 billion [2] - Over the last four quarters, GlobalFoundries has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - GlobalFoundries shares have declined approximately 16.4% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.35 on revenues of $1.67 billion, and for the current fiscal year, it is $1.67 on revenues of $6.95 billion [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which GlobalFoundries belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

GLOBALFOUNDRIES (GFS) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Speaker0 Hello, and welcome to the conference call to review GlobalFoundry's First Quarter of Fiscal twenty twenty five Financial Results. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand has been raised. To withdra ...

Financial Data and Key Metrics Changes - First quarter revenue was $1,585 million, representing a 13% decrease quarter-over-quarter but a 2% increase year-over-year [25] - Non-IFRS adjusted free cash flow was $165 million, translating to a free cash margin of approximately 10% [8][30] - Gross profit for the first quarter was $379 million, resulting in a gross margin of approximately 23.9% [28] Business Line Data and Key Metrics Changes - Automotive revenue represented approximately 19% of total revenue, decreasing 25% sequentially but increasing 16% year-over-year [27] - Smart mobile devices accounted for approximately 37% of total revenue, with a 21% sequential decrease and a 14% year-over-year decrease [26] - Communication infrastructure and data center revenue increased approximately 2% sequentially and 45% year-over-year, representing about 11% of total revenue [28] Market Data and Key Metrics Changes - The automotive market is expected to see meaningful year-over-year revenue growth in 2025, driven by increasing silicon content in vehicles [15] - The IoT market returned to year-over-year growth in Q1, but uncertainty remains for the second half of the year due to tariffs [19] - The communication infrastructure and data center market is projected to grow in the high teens for the full year 2025 [54] Company Strategy and Development Direction - The company is focused on free cash flow generation and has invested over $7 billion in facilities since 2021 to support growth [10][11] - The serviceable addressable market is anticipated to grow at approximately 10% per annum through the end of the decade [11] - The company aims to leverage its differentiated technologies and global footprint to gain market share in critical end markets [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing trade and tariff disputes impacting the semiconductor supply chain and end market demand dynamics [9] - Despite uncertainties, the long-term demand for essential chip technologies remains strong, with a robust financial profile and declining leverage [13] - The company is monitoring the changing landscape closely and diversifying sourcing strategies to mitigate potential impacts [9][10] Other Important Information - The company expects total revenue for Q2 2025 to be approximately $1,675 million, with gross margin guidance of around 25% [31] - The company has a strong balance sheet with $4.7 billion in liquidity and a total debt of $1.1 billion [13][30] Q&A Session Summary Question: Impact of tariffs on revenue and manufacturing flexibility - Management noted no significant short-term impacts from tariffs on orders, but they are closely monitoring the situation for potential medium-term effects [38][40] Question: ASP trends and gross margin maintenance - ASPs are expected to decline mid-single digits due to product mix changes, but gross margins can be maintained through better utilization and structural cost improvements [42][46] Question: Growth expectations in communication infrastructure and data center - Management expects high teens growth in the communication infrastructure and data center segment for 2025, driven by substantial investments in data centers [54][56] Question: Outlook for automotive and smart mobile devices - The automotive segment is expected to continue growing, while the smart mobile device market is anticipated to remain flattish in 2025 [61][66] Question: Long-term margin targets - The company aims to exit 2025 with a gross margin of 30%, supported by improved utilization and product mix [70][78]

First Quarter 2025 Financial Results 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 ...

Core Viewpoint - GlobalFoundries (GF) is accelerating its greenhouse gas (GHG) emission reduction goals, committing to a 42% reduction by 2030 from 2021 levels, up from a previous target of 25% [2][5]. Group 1: Emission Reduction Commitment - GF's updated Journey to Zero Carbon pledge aims for a 42% reduction in total GHG emissions by 2030, while expanding its semiconductor manufacturing capacity [2]. - The company plans to achieve this goal through energy efficiency improvements, advanced emissions controls, alternative chemistries, and lower-carbon power usage across its facilities in the U.S., Germany, and Singapore [2][4]. Group 2: Alignment with Standards - GF is aligning its GHG emission reduction targets with the Science Based Target Initiative (SBTi), recognized as a leading standard for science-based carbon reduction [3][4]. - The commitment to SBTi reflects GF's dedication to responsible manufacturing and supporting customers' sustainability goals [4]. Group 3: Long-term Sustainability Goals - In addition to the near-term targets, GF remains committed to achieving net-zero GHG emissions and 100% carbon-neutral power by 2050 [5]. - This long-term objective aligns with global efforts to reduce emissions and promote environmental sustainability [5].

Core Viewpoint - GlobalFoundries will host a conference call on May 6, 2025, to discuss its first quarter 2025 financial results [1][2]. Group 1: Conference Call Details - The conference call is scheduled for May 6, 2025, at 8:30 a.m. ET [1][2]. - Interested parties can register to join the conference call [2]. - Financial results and a webcast of the conference call will be available on GlobalFoundries' Investor Relations website [2]. Group 2: Company Overview - GlobalFoundries is a leading manufacturer of essential semiconductors used in various high-growth markets such as automotive, smart mobile devices, and the internet of things [3]. - The company focuses on delivering power-efficient, high-performance products and has a global manufacturing footprint across the U.S., Europe, and Asia [3]. - GlobalFoundries emphasizes security, longevity, and sustainability in its operations [3].

Core Viewpoint - U.S. semiconductor manufacturer GlobalFoundries is considering a merger with Taiwan-based United Microelectronics to enhance production capabilities and secure access to mature chips amid geopolitical tensions [1][2] Group 1: Merger Details - The proposed merger would create a company with production capabilities in the U.S., Asia, and Europe [2] - Following the news, shares of United Microelectronics increased by 13%, while GlobalFoundries shares decreased by approximately 1% [1] Group 2: Strategic Implications - The combined entity aims to secure American access to mature chips, addressing potential risks from competition with China and tensions between China and Taiwan [2] - The new company is expected to invest in research and development in the U.S. and could serve as an alternative to Taiwan Semiconductor Manufacturing [3] Group 3: Competitive Landscape - Taiwan Semiconductor Manufacturing announced a $100 billion investment in the U.S. to enhance chip manufacturing, raising its total investment in the U.S. to $165 billion [3]