ASE Technology (ASX) Q4 2024 earnings summary

Executive summary

• Consolidated revenues grew 2% year-over-year in 2024, with ATM revenues up 3% and testing business up 9%.

• Leading-edge advanced packaging and testing revenues exceeded $600 million in 2024, up from $250 million in 2023, and are projected to add another $1 billion in 2025.

• Machinery CapEx reached $1.9 billion in 2024, mainly for advanced packaging and testing.

• Testing business grew 9% year-over-year in 2024 and 18% in Q4, with further acceleration expected in 2025.

• Full-year 2024 net income rose 2% to NT$32,483 million; basic EPS was NT$7.52.

Financial highlights

• FY2024 net revenues: NT$595,410 million, up 2.3% year-over-year; gross profit: NT$96,932 million, up 6%.

• Q4 2024 net revenues: NT$162,264 million, up 1% year-over-year; gross profit: NT$26,631 million, up 3%.

• Q4 net income was NT$9,312 million, down 1% year-over-year; basic EPS: NT$2.15.

• Adjusted (excluding PPA) FY2024 net income: NT$36,905 million; basic EPS: NT$8.54.

• Q4 2024 EBITDA: NT$28,797 million; full-year 2024 EBITDA: NT$112,612 million.

Outlook and guidance

• 2025 ATM revenues expected to grow above mid-single digits, outpacing the logic semiconductor market.

• Leading-edge advanced packaging and testing revenues projected to increase by $1 billion in 2025, contributing about 10% growth.

• 2025 CapEx for machinery and equipment to match Q4 2024 annualized levels, with 60% for leading-edge and over 30% for testing.

• ATM gross margin expected to recover to the structural target of 24%-30% in 2025, with further profitability improvement in 2026.

• Continued expansion in R&D, human capital, advanced capacity, and smart factory investments.