Revenue Performance: Q1 2025 revenue was reported at $2.93 billion. This represents a Year-Over-Year (YoY) decline of 2.19% and a Quarter-Over-Quarter (QoQ) drop of 8.03%.
Gross Profit: The gross profit for the quarter totaled $915 million, with a gross profit margin of 31.2%, down from the prior quarter mainly due to rising input costs and price competition.
Operating Income and Earnings: Operating income fell to $643.6 million, a drastic decrease of 73.45% QoQ, reflecting increased operating expenses and lower revenue. Despite this, net income slightly increased to $617.4 million, yielding an EPS of $2.77, which is an increase of 1.09% YoY and a remarkable 132.82% QoQ rebound, albeit from a low previous quarter.
Balance Sheet: The total assets stand at $40.02 billion with total liabilities of $21.28 billion, resulting in a debt-to-equity ratio of 0.906, suggesting manageable leverage levels. The cash and cash equivalents are reported at $1.84 billion, reflecting adequate liquidity, although cash flow has become a point of concern with a negative free cash flow of -$1.31 billion for the quarter.
Cash Flow Analysis: Operating cash flow was strong at $811.7 million, but significant capital expenditures related to infrastructure investments saw cash used in investing activities balloon to -$2.18 billion. This suggests the company is investing for future growth despite immediate cash flow challenges.