Advantech (2395) Q4 2024 earnings summary

Executive summary

• FY2024 revenue declined 7% year-over-year to NT$59,786 million; 4Q24 revenue grew 9% sequentially and 8% year-over-year to NT$16,313 million.

• FY2024 net income to parent dropped 17% year-over-year to NT$9,005 million; EPS was NT$10.45, down from NT$12.65 in FY2023.

• Only the Industrial IoT (IIoT) segment grew 1% year-over-year; other business units and most regions declined, except Taiwan, which grew 18%.

• Major acquisitions included Expetech and Aures; Donghu factory land/buildings were disposed.

Financial highlights

• FY2024 gross profit margin was 40.8%; net margin was 15.1%; operating margin declined due to higher expenses.

• 4Q24 net income to parent was NT$2,641 million, up 17% sequentially and 15% year-over-year.

• Cash and cash equivalents at year-end were NT$20,449 million or NT$13.62 billion, representing 29% of total assets.

• Cash flows from operations reached NT$10.51 billion in 2024.

Outlook and guidance

• Board proposed a 2024 cash dividend of NT$8.4 per share, pending shareholder approval.

• The company continues to invest in IoT, AI, and smart campus expansions.

• Forward-looking statements are subject to significant risks and uncertainties.