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Tower Semiconductor Where Analog and Value Meet Second Quarter 2026 Financial Results Conference Call Supporting Slides August 4 , 2026
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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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$372M $414M $460M $520M * 300 350 400 450 500 550 Q2'2025 Q1'2026 Q2'2026 Q3'2026 (*guidance) Second Quarter 2026 Financial Results Highlights and Third Quarter 2026 Outlook Q2 2026 revenue: $460 million | Q2 2026 Net profit: $91 million 3 • Q3 2026 revenue guidance of $520 million, +/- 5%. Mid-range guidance represents growth of 13% quarter-over-quarter and 31% year-over-year. • Firmly committed to delivering quarter-over-quarter revenue growth throughout 2026.
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Revenue Gross Profit Operating Profit Net Profit 2,840 1,120 900 750 3,600 1,630 1,380 1,200 Feb’ 2026 Model Updated Aug’ 2026 Model 760 510 480 450 Incremental vs. Feb’ 2026 Model 67% 63% 59% % of Incremental Revenue $M of Increase 1.3X 1.5X 1.5X 1.6X 4 * Model assumes 85% utilization across all of Tower’s foundry capacity. ** Including revenue and margins from the $920M SiGe & SiPho capacity and capability Cap-Ex investments announced prior to Q3’2026 and Japan Track I / Arai related added SiPho Cap-Ex announced on July 14, 2026. 1,566 364 194 220 FY 2025 2028 Target Business Model ($M)
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2028 Target Business Model ($M) 5 Revenue 3,600 Cost of Revenue 1,970 Gross Profit Gross Margin 1,630 45.3% Op-Ex 250 Operating Profit Operating Margin 1,380 38.3% Net Profit Net Profit Margin 1,200 33.3%
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Q2 Year-over-Year Revenue Breakdown by Technology Second Quarter 2025 $372 Million Revenue Second Quarter 2026 $460 Million Revenue 6 Sensors & Displays 12% RF Infrastructure 49% RF Mobile 12% Power 14% Discrete 9% MS/ CMOS/ Misc. 4% Sensors & Displays 15% RF Infrastructure 25% RF Mobile 23% Power 17% Discrete 11% MS/ CMOS/ Misc. 9%
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Balance Sheet ($ in million) 7 June 30, December 31, 2026 2025 ASSETS Cash and cash equivalents 231 235 Short-term deposits 1,250 917 Trade accounts receivable 203 223 Inventories 244 257 Other current assets 57 78 Total current assets 1,985 1,710 Property and equipment, net 1,650 1,463 Other long-term assets, net 136 149 TOTAL ASSETS 3,771 3,322 LIABILITIES AND SHAREHOLDERS' EQUITY Short-term debt 17 28 Trade accounts payable 123 124 Customer prepayment and deferred revenue 176 26 Other current liabilities 88 86 Total current Liabilities 404 264 Long-term debt 125 133 Long-term customers' advances 145 2 Other long-term liabilities 26 18 TOTAL LIABILITIES 700 417 SHAREHOLDERS’ EQUITY 3,071 2,905 TOTAL LIABILITIES & EQUITY 3,771 3,322
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Q2‘26 P&L vs. Q1’26 P&L (in thousands of $) 8 T h r e e M o n t h s e n d e d June 30, March 31, 2026 2026 REVENUE 460,079 413,631 COST OF REVENUE 322,307 302,680 GROSS PROFIT 137,772 110,951 Research and development 23,569 23,530 Marketing, general and administrative 23,913 22,856 OPERATING PROFIT 90,290 64,565 Financing and other income, net 15,902 9,518 PROFIT BEFORE INCOME TAX 106,192 74,083 INCOME TAX EXPENSE, NET (15,573) (6,518) NET PROFIT 90,619 67,565 Non controlling interest 150 (2,533) NET PROFIT ATTRIBUTABLE TO THE COMPANY 90,769 65,032 BASIC EARNINGS PER SHARE 0.80 0.58 DILUTED EARNINGS PER SHARE 0.79 0.57 GAAP NET PROFIT 90,769 65,032 Stock based compensation and amortization of acquired intangible assets 9,941 9,441 ADJUSTED NET PROFIT 100,710 74,473 ADJUSTED EARNINGS PER SHARE: Basic 0.89 0.66 Diluted 0.88 0.65
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Q2‘26 P&L vs. Q2’25 P&L (in thousands of $) 9 T h r e e M o n t h s e n d e d June 30, June 30, 2026 2025 REVENUE 460,079 372,061 COST OF REVENUE 322,307 292,035 GROSS PROFIT 137,772 80,026 Research and development 23,569 19,418 Marketing, general and administrative 23,913 20,743 OPERATING PROFIT 90,290 39,865 Financing and other income, net 15,902 14,387 PROFIT BEFORE INCOME TAX 106,192 54,252 INCOME TAX EXPENSE, NET (15,573) (8,660) NET PROFIT 90,619 45,592 Non controlling interest 150 959 NET PROFIT ATTRIBUTABLE TO THE COMPANY 90,769 46,551 BASIC EARNINGS PER SHARE 0.80 0.42 DILUTED EARNINGS PER SHARE 0.79 0.41 GAAP NET PROFIT 90,769 46,551 Stock based compensation and amortization of acquired intangible assets 9,941 10,595 ADJUSTED NET PROFIT 100,710 57,146 ADJUSTED EARNINGS PER SHARE: Basic 0.89 0.51 Diluted 0.88 0.50
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H1‘26 P&L vs. H1’25 P&L (in thousands of $) 10 Six months ended June 30, 2026 2025 REVENUE 873,710 730,231 COST OF REVENUE 624,987 577,034 GROSS PROFIT 248,723 153,197 Research and development 47,099 39,590 Marketing, general and administrative 46,769 40,844 OPERATING PROFIT 154,855 72,763 Financing and other income, net 25,420 24,985 PROFIT BEFORE INCOME TAX 180,275 97,748 INCOME TAX EXPENSE, NET (22,091) (12,439) NET PROFIT 158,184 85,309 Non controlling interest (2,383) 1,384 NET PROFIT ATTRIBUTABLE TO THE COMPANY 155,801 86,693 BASIC EARNINGS PER SHARE 1.38 0.78 DILUTED EARNINGS PER SHARE 1.36 0.77 GAAP NET PROFIT 155,801 86,693 Stock based compensation and amortization of acquired intangible assets 19,382 20,930 ADJUSTED NET PROFIT 175,183 107,623 ADJUSTED EARNINGS PER SHARE: Basic 1.55 0.96 Diluted 1.53 0.95
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Thank You Contact: Liat Avraham, Investor Relations Email: liatavra@towersemi.com