0001628280-25-037169
SEC filingCorning's Q2 2025 revenue surged 19% YoY to $3.86B, driven by Optical Communications growth, with net income of $469M and core EPS of $0.60.
Corning's second quarter of 2025 demonstrated a strong performance, with net sales increasing 19% year-over-year to $3.86 billion, driven primarily by a 41% surge in Optical Communications segment revenue. Gross profit rose 47% to $1.39 billion, with gross margin expanding to 36% from 29% in the prior year, reflecting successful pricing actions, productivity improvements, and normalized inventory levels. Operating income increased significantly to $573 million from $186 million, and net income attributable to Corning Incorporated was $469 million, compared to $104 million in Q2 2024. Diluted earnings per share were $0.54, up from $0.12 in the prior year. Core performance measures, which exclude certain items, showed core net sales of $4.05 billion, core net income of $523 million, and core earnings per share of $0.60.
As of June 30, 2025, Corning had cash and cash equivalents of $1.49 billion, down from $1.77 billion at the end of 2024. Total assets increased to $28.75 billion from $27.74 billion, driven by increases in trade accounts receivable, inventories, and property, plant, and equipment. Total debt was $7.50 billion, up from $7.21 billion, with a debt-to-capital ratio of 39%. The company had $1.5 billion available under its revolving credit facility. Working capital was $2.72 billion, with a current ratio of 1.5:1.
Net cash provided by operating activities for the first six months of 2025 was $859 million, compared to $617 million in the same period of 2024, driven by higher net income. Capital expenditures were $516 million, up from $494 million. Free cash flow (operating cash flow minus capex) was $343 million. The company used $696 million in financing activities, including $133 million for share repurchases and $503 million for dividends.
Management attributed the strong results to actions taken to improve profitability, including raising prices, restoring productivity levels, and normalizing inventory levels. The Optical Communications segment benefited from continued growth in the Enterprise business, driven by strong demand for Generative AI products, and in the Carrier business, driven by demand for datacenter interconnect products and fiber-to-the-home products. The Display segment saw lower sales volume due to reduced panel maker utilization, partially offset by pricing actions. For the third quarter of 2025, Corning expects core net sales of approximately $4.2 billion.
Segment performance varied significantly. Optical Communications segment net income increased 73% to $247 million. Display segment net income decreased 6% to $243 million. Specialty Materials segment net income increased 29% to $81 million. Automotive segment net income increased 11% to $79 million. Life Sciences segment net income remained flat at $18 million. Hemlock and Emerging Growth Businesses reported a net loss of $10 million, driven by temporarily higher costs to ramp up for new solar products. The company also completed the acquisition of a U.S. solar module manufacturing facility in April 2025 for a total purchase price of $278 million.