Amkor Technology (AMKR) Q4 2024 earnings summary

Executive summary

• Full year 2024 revenue was $6.3 billion, with EPS of $1.43 and net income of $354 million; record revenue achieved in advanced SiP and computing, offsetting declines in automotive, industrial, and communications.

• Advanced SiP revenue reached a record $3.1 billion; computing end market revenue hit a record $1.2 billion, driven by AI GPUs and Arm-based PCs.

• New Vietnam facility qualified and began production; $407 million in CHIPS funding secured for Arizona facility; expanded partnerships with TSMC and Infineon.

• 2024 met expectations except for prolonged weakness in automotive and industrial; expecting a stronger second half in 2025 driven by communications.

• Benefited from extended useful lives of test equipment, reducing 2024 depreciation by $59 million and increasing net income by $49 million.

Financial highlights

• Q4 2024 revenue was $1.63 billion, gross profit $247 million, gross margin 15.1%, operating income $134 million, and net income $106 million, with EPS $0.43.

• Full year 2024 gross profit $933 million, operating income $438 million, EBITDA $1.1 billion (17.3% margin), and free cash flow $359 million.

• Ended year with $1.6 billion cash/short-term investments, $2.3 billion total liquidity, $1.2 billion total debt, and debt/EBITDA 1.1x.

• Q4 2024 net sales declined 7% sequentially and year-over-year; full year net sales down 3% from 2023.

• 2024 dividend payments totaled $178.6 million, including a 5% increase and a special cash dividend of $0.40546 per share.

Outlook and guidance

• Q1 2025 revenue expected at $1.225–$1.325 billion, gross margin 10%–13%, net income $3–$43 million, EPS $0.01–$0.17.

• Full year 2025 revenue expected flat to low single-digit growth, with muted first half and strong second half driven by iOS content recovery and communications.

• CapEx forecast for 2025 is $850 million, with 5%–10% for Arizona facility; effective tax rate expected to rise to ~20%.