Executive Summary

Q1 2025 printed in line-to-better: net sales $1.32B and EPS $0.09, with both revenue and EPS modestly above S&P Global consensus; gross margin compressed to 11.9% on lower utilization and higher R&D tied to RDL programs . Estimates comparison marked with asterisks; values retrieved from S&P Global.*
Mix: Communications outperformed internal plan; Computing grew 21% YoY; Consumer +23% YoY; Automotive/Industrial remained soft; utilization in the low-50% range pressured margins .
Q2 guide implies ~8% q/q revenue growth at the midpoint ($1.375–$1.475B), GM 11.5–13.5%, EPS $0.07–$0.23; FY25 capex held at ~$850M; management reiterated agility amid tariff/export control uncertainty but noted operations largely unaffected (free-trade-zone exposure, minimal U.S. shipments) .
Potential stock catalysts: modest Q1 beat, sequential growth guide, H2 content recovery in next-gen iOS SiP socket, and accelerating AI/advanced packaging pipeline (2.5D, RDL, co-packaged optics), tempered by tariffs/export controls and auto/industrial recovery timing .

What Went Well and What Went Wrong

What Went Well

Communications revenue “exceeded our expectations” in Q1, helping deliver $1.32B revenue at the upper end of guidance; EPS $0.09; strength expected to continue into Q2 with improved line utilization .
Computing +21% YoY on AI/HPC engagements (2.5D flows, PC programs); RDL-based AI CPU programs commenced and co-packaged optics moved into production with a leading data center customer .
Balance sheet/liquidity strong: cash + ST investments $1.56B; total liquidity ~$2.2B; total debt ~$1.15B; debt/EBITDA ~1.1x; continued dividend ($0.08269/share) and capex to support growth .

Selected quotes:

“Communications revenue exceeded our expectations…” .
“We confirmed plans for a turnkey test solutions expansion on our K5 campus in Incheon, Korea…” .
“We are collaborating…on co-packaged optics and photonic solutions...we’re actually in production now” .

What Went Wrong

Gross margin fell to 11.9% (from 15.1% in Q4 and 14.8% in Q1’24) due to low-50% utilization and higher R&D (RDL acceleration) .
Automotive/Industrial declined 6% YoY and remains at/near trough; management is cautious on a strong H2 recovery despite robust advanced-packaging pipelines (ADAS/infotainment/sensors) .
Macro/trade risks: management cited evolving tariffs/export controls as key uncertainties, and an accelerated AI GPU transition plus expanded restrictions temper near-term compute outlook vs earlier expectations .

Financial Results

Headline P&L vs prior periods and estimates

Metric	Q1 2024	Q4 2024	Q1 2025	Q1 2025 Consensus	Result vs Cons.
Revenue ($USD Billions)	$1.366	$1.629	$1.322	$1.276*	Beat (small)
Diluted EPS ($)	$0.24	$0.43	$0.09	$0.085*	Beat (small)
Gross Margin (%)	14.8%	15.1%	11.9%	—	—
Operating Income ($MM)	$73	$134	$32	—	—
Operating Margin (%)	5.4%	8.3%	2.4%	—	—
EBITDA ($MM, non-GAAP)	$233	$302	$197	—	—

Notes: EBITDA is non-GAAP; reconciliation provided in the press release . Consensus values marked with asterisks; values retrieved from S&P Global.*

Q2 2025 outlook vs Street

Metric	Company Guidance (Q2 2025)	Street Consensus (Q2 2025)
Revenue ($B)	$1.375–$1.475	$1.422*
EPS ($)	$0.07–$0.23	$0.160*
Gross Margin (%)	11.5–13.5	—

Consensus values marked with asterisks; values retrieved from S&P Global.*

Segment/End-market mix (Selected Operating Data)

Category	Q1 2024	Q4 2024	Q1 2025
Advanced products net sales ($MM)	$1,070	$1,357	$1,064
Mainstream products net sales ($MM)	$296	$272	$258
Packaging services (%)	87%	88%	88%
Test services (%)	13%	12%	12%
Top 10 customers (% sales)	70%	73%	71%
Communications (%)	47%	44%	40%
Computing (%)	17%	21%	22%
Auto/Industrial/Other (%)	22%	17%	21%
Consumer (%)	14%	18%	17%

KPIs

KPI	Q1 2025
EBITDA ($MM)	$197
EBITDA Margin (%)	14.9%
Cash + Short-term Investments ($B)	~$1.56 (cash $1.058B; ST inv. $0.505B)
Total Debt ($B)	~$1.15 (ST + LT)
Operating Cash Flow ($MM)	$24
FY25 Capex Outlook ($MM)	~$850
Dividend per share	$0.08269 (paid Apr 2, 2025; declared again for Jun 25)
Factory Utilization	“Low 50s”

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	Q2 2025	—	$1.375–$1.475	New
Gross Margin (%)	Q2 2025	—	11.5–13.5	New
EPS ($)	Q2 2025	—	$0.07–$0.23	New
OpEx ($MM)	Q2 2025	—	~125	New
Effective Tax Rate (%)	FY 2025	~20% (set in Q4 call)	~20% reiterated	Maintained
Capex ($MM)	FY 2025	~$850 (Feb guide)	~$850 reaffirmed	Maintained
Dividend ($/share)	Q2 2025 payment	$0.08269 (paid Apr 2)	$0.08269 (declared; payable Jun 25)	Maintained run-rate

Earnings Call Themes & Trends

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
AI/HPC (2.5D, RDL)	Quadruple 2.5D rev in 2024; added capacity; early RDL qual	Record computing; near-term tempered by GPU transition/export controls; RDL interposer starts low-volume	2.5D pipeline robust; RDL CPU in production; expanding co-packaged optics	Broadening tech/customer base
Supply chain/tariffs	Seasonality deviations; planning for 2025	Export controls tightened; muted H1’25 outlook	Ops largely unaffected (FTZs, minimal US shipments); monitoring demand swings	Risk management focus
Communications (iOS/Android)	Strong ramps; later H2 weaker than plan	Socket gap; expect H2’25 content recovery; 2025 flat YoY	Q1 beat internal plan; Q2 growth; new SiP socket production by end of June	Improving into H2
Automotive/Industrial	Prolonged weak; underutilization in mainstream factories	7 quarters of YoY declines; advanced auto mid-teens growth in 2025; mainstream uncertain	Trough likely; cautious near-term; advanced packaging demand solid	Gradual bottoming
Test capacity	Building out test; Vietnam/Korea ramps	Test as strategic lever for compute supply chain diversification	Turnkey test expansion at K5 Korea; first phase by end-2025	Scaling
U.S. footprint (Arizona)	CHIPS progress; MOU with TSMC	$407M CHIPS to support AZ; plan over 3–5 years	On track to begin construction 2H’25; evaluating acceleration/scale	Advancing

Management Commentary

Strategy pillars: technology leadership, geographic footprint expansion, and partnering with lead customers in growth markets .
“As a technology leader in advanced packaging and test…High-performance computing and AI are driving technology innovations and the need for advanced packaging” .
On tariffs/export controls: “Our global manufacturing operations are largely unaffected…majority of our facilities operate in free trade zones…ship a small amount…into the U.S.” .
On Arizona: “On track to begin construction…in the second half of 2025…evaluating options to increase scale and expand technology offerings” .
On RDL/co-packaged optics: “One [RDL] device in production…multiple other devices in qualification…co-packaged optics…we’re actually in production now” .

Q&A Highlights

Growth drivers: Q2 strength led by Communications and Computing; management does not see tariff-related pull-ins behind Q1/Q2 .
Capex discipline: ~$850M in 2025 focused ~70% on capacity/capability (HPC: 2.5D/RDL, advanced SiP, test); flexibility to delay if needed; potential acceleration for Arizona .
Margins/utilization: GM expansion expected with higher utilization in H2; current utilization low-50% weighed on Q1 GM; Vietnam burden ~100 bps in early 2025 .
Auto outlook: Market hit a trough; advanced packaging (ADAS/infotainment/sensors) has strength; mainstream still cautious; Q2 single- to mid-single-digit q/q growth targeted .
Compute mix: Near-term tempered by accelerated AI GPU transition/export controls; diversification across GPUs, CPUs, networking; RDL programs ramping through 2025–2026 .

Estimates Context

Q1 vs consensus (S&P Global): Revenue $1.322B vs $1.276B*, EPS $0.09 vs $0.085* — both small beats. GM 11.9% (Street typically models gross margin; not disclosed here) . Consensus values retrieved from S&P Global.*
Q2 guide vs consensus: Midpoint revenue ~$1.425B vs $1.422B*, EPS $0.07–$0.23 vs $0.160*; guide brackets Street on both revenue and EPS . Consensus values retrieved from S&P Global.*
Implications: Modest Q1 beat with sequential growth guide supports near-term estimate stability/slight upward revisions for Q2 revenue/EPS; margin trajectory hinges on utilization recovery, R&D normalization, and Vietnam dilution tapering .

Key Takeaways for Investors

Modest beat, cautious quality: Q1 outperformed consensus on revenue/EPS but with material margin compression from underutilization and elevated R&D; watch GM recovery path as volumes improve into Q2/H2 .
Sequential growth ahead: Q2 revenue guide +8% q/q (midpoint) with GM 11.5–13.5% signals early utilization improvement; EPS guide brackets Street .
H2 content catalyst: Re-entry into next-gen iOS SiP socket and ongoing Android recovery set the stage for above-seasonal H2; line-of-sight to late-Q2 production start for the new socket .
Compute diversifying: 2.5D remains core, but RDL and co-packaged optics add incremental levers; export control risks remain a headwind to visibility .
Auto/Industrial bottoming: Advanced auto programs (ADAS/infotainment/sensors) should outgrow mainstream; a gradual recovery appears more likely than a snapback .
Capital allocation consistent: FY25 capex ~$850M maintained to fund HPC, SiP, and test; strong liquidity and steady dividend underpin balance-sheet resilience .
U.S. capacity optionality: Arizona project on track for 2H’25 construction; potential acceleration and scale-up provide strategic leverage if domestic packaging demand accelerates .

References:

Q1 2025 press release and Selected Operating Data .
Form 8-K (Item 2.02) and attached press release (same figures) .
Q1 2025 earnings call transcript (prepared remarks and Q&A) .
Prior quarter press releases and calls for context: Q4 2024 ; Q3 2024 ; Q3 2024 call .
Dividend press release (May 15, 2025) .

Estimates: Consensus figures marked with asterisks are values retrieved from S&P Global.*

AMKOR TECHNOLOGY, INC. (AMKR)·Q1 2025 Earnings Summary