$TSEM

TOWER SEMICONDUCTOR LTD

CIK:0000928876|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Income Statement [Abstract]
REVENUE	$ 1,566,104	$ 1,436,122	$ 1,422,680
COST OF REVENUE	1,202,250	1,096,680	1,069,161
GROSS PROFIT	363,854	339,442	353,519
OPERATING COSTS AND EXPENSES:
Research and development	86,496	79,434	79,808
Marketing, general and administrative	83,186	74,964	72,454
Restructuring gain from sale of machinery and equipment, net	0	0	(52,168)
Restructuring expense (income), net	0	(6,270)	19,662
Merger-contract termination fee, net	0	0	(313,501)
TOTAL OPERATING COSTS AND EXPENSES	169,682	148,128	(193,745)
OPERATING PROFIT	194,172	191,314	547,264
FINANCING INCOME, NET	56,738	50,834	30,531
OTHER INCOME (EXPENSE), NET	(10,527)	(24,721)	7,047
PROFIT BEFORE INCOME TAX	240,383	217,427	584,842
INCOME TAX EXPENSE, NET	(21,569)	(10,205)	(65,312)
NET PROFIT	218,814	207,222	519,530
Net loss (income) attributable to non-controlling interest	1,656	642	(1,036)
NET PROFIT ATTRIBUTABLE TO THE COMPANY	$ 220,470	$ 207,864	$ 518,494
BASIC EARNINGS PER SHARE:
Earnings per share	$ 1.97	$ 1.87	$ 4.7
Weighted average number of shares	111,981	111,153	110,289
DILUTED EARNINGS PER SHARE:
Earnings per share	$ 1.94	$ 1.85	$ 4.66
Net profit used for diluted earnings per share	$ 220,470	$ 207,864	$ 518,494
Weighted average number of shares used for diluted earnings per share	113,597	112,343	111,216

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
CASH FLOWS - OPERATING ACTIVITIES
Net profit for the period	$ 218,814	$ 207,222	$ 519,530
Income and expense items not involving cash flows:
Depreciation and amortization	303,112	266,279	258,021
Exchange rate differences and fair value adjustments	0	133	(1,632)
Other expense (income), net	10,527	24,721	(7,047)
Changes in assets and liabilities:
Trade accounts receivable	(10,498)	(60,169)	(3,160)
Other current assets	(25,453)	(33,992)	(9,541)
Inventories	11,800	4,778	8,682
Other long term assets	(106,188)	0	0
Trade accounts payable	(12,157)	35,784	(8,254)
Deferred revenue and customers' advances	(1,832)	(14,783)	(35,676)
Employee related liabilities and other current liabilities	12,029	22,021	(70,163)
Long-term employee related liabilities	1,524	(1,312)	(1,210)
Other long-term liabilities	(6,196)	(2,000)	27,011
Net cash provided by operating activities	395,482	448,682	676,561
CASH FLOWS - INVESTING ACTIVITIES
Investments in property and equipment, net	(444,425)	(436,153)	(444,502)
Proceeds related to sale and disposal of property and equipment	7,864	4,500	12,318
Proceeds from investment realization	0	62	12,458
Investments in other assets	0	(530)	(605)
Deposits and marketable securities, net	38,470	31,882	(300,516)
Net cash used in investing activities	(398,091)	(400,239)	(720,847)
CASH FLOWS - FINANCING ACTIVITIES
Proceeds from loans	13,808	81,812	24,180
Loans repayment	(19,819)	(76,144)	0
Principal payments on account of capital lease obligation	(27,342)	(38,123)	(38,033)
Debentures repayment	0	0	(18,493)
Proceeds from an investment in a subsidiary	0	0	1,932
Net cash used in financing activities	(33,353)	(32,455)	(30,414)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGE	(563)	(4,758)	(5,395)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(36,525)	11,230	(80,095)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	271,894	260,664	340,759
CASH AND CASH EQUIVALENTS - END OF PERIOD	235,369	271,894	260,664
NON-CASH ACTIVITIES:
Investments in property and equipment	56,515	50,440	164,667
Right-of-use asset recognized with corresponding lease liability, net	11,709	0	0
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash received during the period from interest	58,572	53,613	30,475
Cash paid during the period for interest	4,736	4,255	4,519
Cash paid for income tax, net during the period	$ 20,343	$ 23,488	$ 12,379

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
CURRENT ASSETS
Cash and cash equivalents	$ 235,369	$ 271,894
Short-term deposits	916,541	946,351
Trade accounts receivable	222,795	211,932
Inventories	256,855	268,295
Other current assets	78,062	61,817
Total current assets	1,709,622	1,760,289
PROPERTY AND EQUIPMENT, NET	1,463,056	1,286,622
INTANGIBLE ASSETS, NET	1,530	3,196
GOODWILL	7,000	7,000
OTHER LONG-TERM ASSETS, NET	141,082	23,378
TOTAL ASSETS	3,322,290	3,080,485
CURRENT LIABILITIES
Current maturities of long-term debt	28,112	48,376
Trade accounts payable	123,915	130,624
Deferred revenue and customers' advances	25,581	21,655
Employee related liabilities	70,299	65,199
Other current liabilities	15,840	19,210
Total current liabilities	263,747	285,064
LONG-TERM DEBT	133,406	132,437
LONG-TERM CUSTOMERS' ADVANCES	1,932	7,690
EMPLOYEE RELATED LIABILITIES	6,448	4,985
OTHER LONG-TERM LIABILITIES	12,174	10,129
TOTAL LIABILITIES	417,707	440,305
Ordinary shares of NIS 15 par value: 150,000 authorized as of December 31, 2025 and 2024 and 112,621 and 112,534 issued and outstanding, respectively, as of December 31, 2025 and 111,637 and 111,550 issued and outstanding, respectively, as of December 31, 2024	450,905	446,562
Additional paid-in capital	1,373,643	1,377,986
Cumulative stock based compensation	274,319	236,551
Accumulated other comprehensive loss	(66,457)	(74,188)
Retained earnings	895,949	675,479
TOTAL SHAREHOLDERS' EQUITY, GROSS	2,928,359	2,662,390
Treasury stock, at cost - 87 shares	(9,072)	(9,072)
THE COMPANY'S SHAREHOLDERS' EQUITY	2,919,287	2,653,318
Non-controlling interest	(14,704)	(13,138)
TOTAL SHAREHOLDERS' EQUITY	2,904,583	2,640,180
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,322,290	$ 3,080,485