OSI Systems (OSIS) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 revenues of $481 million, up 17% year-over-year, and record FY24 revenues of $1.54 billion, up 20% year-over-year, driven by strong Security division performance.

• Non-GAAP adjusted EPS reached $8.13 for FY24, a 31% increase over prior year; GAAP diluted EPS was $7.38.

• Ended the year with a $1.7 billion backlog and a robust pipeline, providing strong visibility into fiscal 2025.

Financial highlights

• Q4 Security division revenues up 27% year-over-year; full-year Security revenues up 37%.

• Optoelectronics division achieved record Q4 revenues, with third-party sales up 6% year-over-year.

• Healthcare division Q4 revenues were the strongest of the year but down 15% year-over-year.

• Q4 gross margin was 32.1%, down from 34.7% last year; FY24 gross margin was 34.5%, up from 33.7% in FY23.

• Q4 adjusted operating margin was 14.8%; Security division at 18.5%, Opto at 13.9%, Healthcare at 9.3%.

Outlook and guidance

• Fiscal 2025 revenue guidance: $1.62–$1.65 billion; non-GAAP adjusted EPS: $8.80–$9.15.

• Anticipates robust year-over-year growth in Q1 2025, with revenues building into Q2 and Q3.

• Expects gross margin expansion as service revenue grows and meaningful free cash flow generation in fiscal 2025.

• Optoelectronics and Manufacturing division expects revenue growth weighted to the second half of FY25.

• Healthcare division anticipates a stronger FY25, driven by new product development.