TSEM TOWER SEMICONDUCTOR LTD

Overview and Growth

TOWER SEMICONDUCTOR LTD generated $1.57B of revenue in fiscal 2025, with net income of $220.47M and an operating cash inflow of $395.48M. The $1.57B revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 9.1% above fiscal 2024 revenue of $1.44B, marking a year-over-year increase. On a per-share basis, diluted EPS was $1.94, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 4.9% from $1.85 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Asset turnover was 0.47x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $363.85M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross profit represented 23.2% of revenue, showing how much of the top line remained after direct costs. Operations produced $194.17M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 12.4% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. After all reported below-operating-line items, the company recorded net income of $220.47M for the fiscal year. Net margin was 14.1%, meaning that this portion of revenue remained as net income after all recognized expenses. The earnings statement records $240.38M of pretax income, the profit base against which the reported tax provision can be assessed. The pretax margin was 15.3%, relating income before taxes directly to revenue. Income tax expense totaled $21.57M, providing the reported tax component that separates pretax and after-tax earnings. The income-tax provision equaled 9.0% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

The company held $3.32B of assets against $417.71M of liabilities and $2.90B of equity, revealing how the asset base was financed. The near-term balance sheet paired $1.71B of current assets with $263.75M of current liabilities at the reporting date. At 6.48x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Reported cash and equivalents were $235.37M, separating immediately recognizable cash resources from the rest of the current-asset base. The cash balance equaled 89.2% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $161.52M, establishing the amount of borrowing carried within the company’s capital structure. Against book equity, debt measured 0.06x, placing the company’s financial leverage in clear balance-sheet terms. The debt-to-assets relationship was 4.9%, comparing borrowing with the total asset balance. Relative to total assets, liabilities measured 12.6%, complementing the separate equity-based view of the company’s capital structure. Cash and equivalents equaled 7.1% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Cash flow from operations was $395.48M, a reported cash inflow that can be compared directly with net income and capital spending. The operating-cash-flow-to-net-income relationship was 1.79x, comparing cash generated by operations with the bottom-line earnings result. The cash-flow statement records $444.43M of capital expenditures, the investment amount considered after operating cash generation. Capital spending absorbed 112.4% of operating cash flow, quantifying the share of cash from operations directed to investment. Negative free cash flow was $48.94M, leaving a cash deficit after capital spending and reducing financial flexibility. Free-cash-flow margin was -3.1%, reflecting a cash deficit equal to 3.1% of revenue after capital spending. The free-cash-flow deficit equaled 1.5% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.