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Third Quarter 2025 Financial Results Conference Call November 10, 2025 Supporting Slides
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Safe Harbor This presentation contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. For example, statements regarding expected (i) customer demand, (ii) utilization and cross utilization of our Fabs, (iii) demand from our end markets, (iv) market and technology trends, and (v) results regarding revenues, cash flow, margins and net profits are all forward-looking statements. Actual results may differ materially from those projected or implied by such forward-looking statements due to various risks and uncertainties applicable to Tower Semiconductor’s business as described in the reports filed by Tower Semiconductor Ltd. (“Tower”) with the Securities and Exchange Commission (the “SEC”) and the Israel Securities Authority (“ISA”), including the risks identified under the heading "Risk Factors" in Tower’s most recent filings on Forms 20-F and 6-K. No assurances can be given that any of the events anticipated by the forward- looking statements will transpire or occur, or if any of them do, what impact they will have on the results of operations or financial condition of Tower Semiconductor. In addition, some of the financial information in this presentation, is non-GAAP financial measures, including, but not limited to, EBITDA, Cash, debt and Net Cash. These non-GAAP financial measures have the same definition as appear in our previously filed quarterly financial results related announcements and/ or other public filings. Tower Semiconductor is providing this information as of the date of this presentation and expressly disclaims any obligation to update any of the forward-looking statements or other information contained in this presentation as a result of new information, future events or otherwise. 2
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Third Quarter 2025 Financial Results Highlights • Q3 2025 revenue: $396 million • Net profit: $54 million Outlook * Q4 2025 revenue guidance of $440 million, +/- 5%, represents 14% year-over-year growth. Q3'24 (Y/Y) Q2'25 (Q/Q) Q3'25 Q4'25 (guidance) $370.5M $372M $396M $440M* 3
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Q3 2025 Revenue Breakdown by Technology Q3’24 | $371M revenue Third Quarter $396M Revenue Automotive: 9% Automotive: 11% 4 RF Infrastructure 27% RF Mobile 26%Sensors & Display 14% MS/ CMOS 5% Power 17% Discrete 10% Misc. 1% RF Infrastructure 18% RF Mobile 26% Sensors & Display 14% MS/ CMOS 8% Power 17% Discrete 17%
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Balance Sheets ($ in million) 5 September 30, 2025 December 31, 2024 CURRENT ASSETS Cash and cash equivalents 273 272 Short-term deposits 951 946 Trade accounts receivable 213 212 Inventories 287 268 Other current assets 56 62 Total Current Assets 1,780 1,760 Property and equipment, net 1,440 1,287 Other long-term assets, net 33 33 TOTAL ASSETS 3,253 3,080 CURRENT LIABILITIES Short-term debt 33 48 Trade accounts payable 132 131 Customer prepayment and deferred revenue 20 22 Other current liabilities 84 84 Total Current Liabilities 269 285 Long-term debt 131 132 Deferred tax and other long-term liabilities 20 23 TOTAL LIABILITIES 420 440 Shareholders’ Equity 2,833 2,640 TOTAL LIABILITIES & EQUITY 3,253 3,080
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Q3‘25 P&L vs. Q2’25 and Q3’24 P&L (in thousands of $) 6 September 30, June 30, September 30, 2025 2025 2024 REVENUES $ 395,667 $ 372,061 $ 370,512 COST OF REVENUES 302,622 292,035 277,451 GROSS PROFIT 93,045 80,026 93,061 OPERATING COSTS AND EXPENSES: Research and development 22,056 19,418 19,867 Marketing, general and administrative 20,409 20,743 17,432 42,465 40,161 37,299 OPERATING PROFIT 50,580 39,865 55,762 FINANCING AND OTHER INCOME, NET 10,491 14,387 6,104 PROFIT BEFORE INCOME TAX 61,071 54,252 61,866 INCOME TAX EXPENSE, NET (7,625) (8,660) (7,026) NET PROFIT 53,446 45,592 54,840 NON CONTROLLING INTEREST 199 959 (193) NET PROFIT ATTRIBUTABLE TO THE COMPANY $ 53,645 $ 46,551 $ 54,647 BASIC EARNINGS PER SHARE $ 0.48 $ 0.42 $ 0.49 DILUTED EARNINGS PER SHARE $ 0.47 $ 0.41 $ 0.49 GAAP NET PROFIT $ 53,645 $ 46,551 $ 54,647 9,111 10,595 9,059 ADJUSTED NET PROFIT $ 62,756 $ 57,146 $ 63,706 ADJUSTED EARNINGS PER SHARE Basic $ 0.56 $ 0.51 $ 0.57 Diluted $ 0.55 $ 0.50 $ 0.57 T h r e e m o n t h s e n d e d Stock based compensation and amortization of acquired intangible assets
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YTD‘25 P&L vs. YTD’24 P&L (in thousands of $) 7 2025 2024 REVENUES $ 1,125,898 $ 1,048,931 COST OF REVENUES 879,656 796,342 GROSS PROFIT 246,242 252,589 OPERATING COSTS AND EXPENSES: Research and development 61,646 58,812 Marketing, general and administrative 61,253 55,152 Restructuring income, net -- (6,270) 122,899 107,694 OPERATING PROFIT 123,343 144,895 FINANCING AND OTHER INCOME, NET 35,476 17,798 PROFIT BEFORE INCOME TAX 158,819 162,693 INCOME TAX EXPENSE, NET (20,064) (8,056) NET PROFIT 138,755 154,637 NON CONTROLLING INTEREST 1,583 (1,911) NET PROFIT ATTRIBUTABLE TO THE COMPANY $ 140,338 $ 152,726 BASIC EARNINGS PER SHARE $ 1.25 $ 1.38 DILUTED EARNINGS PER SHARE $ 1.24 $ 1.36 GAAP NET PROFIT $ 140,338 $ 152,726 Stock based compensation and amortization of acquired intangible assets 30,041 24,497 Restructuring income, net -- (2,634) ADJUSTED NET PROFIT $ 170,379 $ 174,589 ADJUSTED DILUTED EARNINGS PER SHARE Basic $ 1.52 $ 1.57 Diluted $ 1.50 $ 1.56 September 30, N i n e m o n t h s e n d e d
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Cash Reports ($ in million) 8 Q3’25 Q3’24 Cash opening balance, excluding securities & deposits 265 265 Cash from operating activities 139 125 Cap-Ex, net (103) (128) Proceeds from (investments in) short- term deposits & investments, net (20) 19 Debt received (repaid) and others, net (8) (10) Cash closing balance, excluding securities & deposits 273 271 YTD’25 YTD’24 Cash opening balance, excluding securities & deposits 272 261 Cash from operating activities 356 348 Cap-Ex, net (326) (338) Proceeds from (investments in) short- term deposits & investments, net (4) 36 Debt repaid and others, net (25) (36) Cash closing balance, excluding securities & deposits 273 271
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Thank You Contact: Liat Avraham, Investor Relations Email: liatavra@towersemi.com