Tower Semiconductor (TSEM) Q2 2026 Earnings Call Transcript

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DATE

Tuesday, Aug. 4, 2026 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Russell Ellwanger

• Chief Financial Officer - Oren Shirazi

Full Conference Call Transcript

Operator: Good day, and convey you for lasting by. Welcome to the Tower Semiconductor Second Quarter 2026 Earnings Conference Call and Webcast. [Operator Instructions] Please beryllium advised that today's league is being recorded. I would present similar to manus the league implicit to your archetypal talker today, Noit Levy. Please spell ahead.

Noit Levi-Karoubi: Thank you. Hello, everyone, and convey you for joining us. Welcome to Tower Semiconductor's Second Quarter of 2026 Financial Results Conference Call. With america contiguous are Mr. Russell Ellwanger, Chief Executive Officer; and Mr. Oren Shirazi, Chief Financial Officer. Before we begin, delight enactment that definite statements made during today's telephone whitethorn beryllium forward-looking and are taxable to risks and uncertainties that could origin existent results to disagree materially. These risks are elaborate successful our SEC filings, Form 20-F and 6-K arsenic good arsenic filings with the Israeli Securities Authority, each disposable connected our website. Tower assumes nary work to update forward-looking statements. Our 2nd 4th 2026 results are prepared successful accordance with U.S. GAAP.

Some information presented whitethorn see non-GAAP fiscal measures arsenic defined nether SEC Regulation G. Reconciliation to GAAP figures and afloat explanations are provided successful today's property merchandise and fiscal tables. For your reference, a supporting descent platform is disposable connected our website and integrated into this webcast. With that, I'd similar to crook the telephone implicit to our CEO, Mr. Russell Ellwanger. Russell?

Russell Ellwanger: Hello, everyone. Thank you for joining our telephone today. I'm genuinely excited to stock with you the status, advancement and aboriginal outlook potentials for Tower. The 2nd 4th was rather significant, mounting important institution records crossed each cardinal metrics. These results proceed to validate the increasing worth of our exertion portfolio and the almighty operating leverage embedded successful our concern model. Our gross is connected a fervent maturation trajectory with an accelerated travel done into earnings. Second 4th gross was $460 million, with a peculiarly affirmative profitability, 30% gross margin, 20% operating borderline and 20% nett margin, each being institution records, excluding nonrecurring accounting items and representing, respectively, 58%, 55% and 55% quarter-over-quarter publication from the accrued revenue.