Press release·05/02/2025 16:11:37

Corning’s Strong Financial Performance in Q1 2025

Corning Incorporated, a leading global technology company, has reported impressive financial results for the first quarter of 2025. The company’s net sales, gross margin, and core earnings per share all saw significant increases compared to the same period in the previous year, showcasing the strength and resilience of Corning’s diverse business segments.

Revenue Growth Across Key Segments

Corning’s net sales for the first quarter of 2025 reached $3.45 billion, a 16% increase from the $2.98 billion reported in the same period of 2024. This growth was driven by strong performance across several of the company’s key business segments.

The Optical Communications segment, which includes products for enterprise and carrier networks, saw a 46% increase in sales, reaching $1.36 billion. This was primarily due to continued strong demand for Corning’s Generative AI products in the enterprise business and datacenter interconnect products in the carrier business.

The Display segment, which includes glass for LCD and OLED displays, also experienced a 4% increase in sales, reaching $905 million. This was attributed to higher sales volume due to increased panel maker utilization, as well as pricing actions taken in the second half of 2024.

The Specialty Materials segment, which includes premium glass for mobile devices, saw a 10% increase in sales, reaching $501 million, driven by continued strong demand for these products.

In contrast, the Automotive segment, which includes automotive glass solutions and environmental technologies, experienced a 10% decrease in sales, reaching $440 million. This was due to continued softness in the light-duty and heavy-duty markets, particularly in Europe.

The Life Sciences segment remained relatively flat, with sales of $234 million, compared to $236 million in the same period of 2024.

Improved Profitability and Margins

Corning’s gross margin for the first quarter of 2025 increased by 22% to $1.21 billion, compared to $993 million in the same period of 2024. This improvement in gross margin was driven by the company’s continued efforts to improve profitability, including raising prices, restoring productivity levels, and normalizing inventory levels.

The company’s gross margin as a percentage of net sales increased from 33% in the first quarter of 2024 to 35% in the first quarter of 2025, reflecting the positive impact of these initiatives.

Selling, general, and administrative (SG&A) expenses increased by 4% to $471 million, but as a percentage of net sales, they decreased from 15% in the first quarter of 2024 to 14% in the first quarter of 2025, indicating improved operational efficiency.

Research, development, and engineering (RD&E) expenses increased by 5% to $270 million, but as a percentage of net sales, they decreased from 9% in the first quarter of 2024 to 8% in the first quarter of 2025, reflecting Corning’s continued investment in innovation and new product development.

Core Performance Measures Highlight Underlying Strength

In addition to the GAAP (Generally Accepted Accounting Principles) financial results, Corning also reports on its “core performance measures,” which exclude the impact of certain non-recurring or non-operating items. These measures provide a clearer picture of the company’s underlying financial performance.

Corning’s core net sales for the first quarter of 2025 were $3.68 billion, a 13% increase from the $3.26 billion reported in the same period of 2024. This growth was driven by the strong performance of the Optical Communications, Display, and Specialty Materials segments, partially offset by declines in the Automotive and Hemlock and Emerging Growth Businesses segments.

Core net income for the first quarter of 2025 was $467 million, a 42% increase from the $330 million reported in the same period of 2024. This improvement was primarily due to the higher segment net income in the Optical Communications and Display segments.

Core earnings per share (EPS) for the first quarter of 2025 increased by 42% to $0.54, compared to $0.38 in the same period of 2024, reflecting the growth in core net income.

Segment Performance Highlights

The Optical Communications segment reported a 101% increase in net income, reaching $201 million, driven by strong incremental profit on higher sales volume.

The Display segment reported a 21% increase in net income, reaching $243 million, primarily due to the increase in sales and improved profitability.

The Specialty Materials segment reported a 68% increase in net income, reaching $74 million, driven by strong incremental profit on higher volumes.

The Automotive segment reported a 13% decrease in net income, reaching $68 million, due to the decrease in sales.

The Life Sciences segment reported flat net income of $13 million, consistent with the same period in 2024.

The Hemlock and Emerging Growth Businesses segment reported a decrease in net income, reaching a loss of $16 million, primarily due to lower sales.

Liquidity and Capital Resources Remain Strong

Corning’s financial condition and liquidity remain strong, with the company not aware of any known trends, demands, commitments, events, or uncertainties that are likely to result in a material decrease in its liquidity.

As of March 31, 2025, Corning had $1.36 billion in cash and cash equivalents and $1.5 billion in available credit capacity through its U.S. dollar revolving credit facility and Chinese yuan facilities.

The company’s working capital, as measured by current assets minus current liabilities, was $3.12 billion as of March 31, 2025, with a current ratio of 1.7:1, indicating a strong ability to meet short-term obligations.

Corning’s total debt stood at $7.24 billion as of March 31, 2025, with a total debt to total capital ratio of 39%, well within the company’s target range.

Outlook and Future Considerations

Corning’s strong financial performance in the first quarter of 2025 demonstrates the company’s ability to navigate the challenges of the current business environment and capitalize on the growth opportunities in its key markets.

The company’s focus on innovation, operational efficiency, and strategic investments in its core business segments is expected to continue driving its success. Corning’s diverse product portfolio, global reach, and strong customer relationships position it well to take advantage of the ongoing trends in the optical communications, display, and specialty materials industries.

However, the company is not without its challenges. The Automotive segment’s performance remains a concern, and the company will need to closely monitor the market conditions and take appropriate actions to address the softness in that business.

Additionally, Corning’s exposure to foreign currency fluctuations, particularly the Japanese yen, South Korean won, Chinese yuan, and euro, could impact its future financial results. The company’s use of hedging instruments and constant-currency reporting helps mitigate these risks, but the volatility in global currency markets remains a factor to watch.

Overall, Corning’s strong first-quarter performance, coupled with its robust liquidity and capital resources, suggests that the company is well-positioned to navigate the current business environment and continue delivering value to its shareholders in the years to come.