Tower Semiconductor (TSEM) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $387 million, up 10% year-over-year and 5% sequentially, with full-year revenue at $1.44 billion and net profit of $208 million.

• Q4 net profit was $55 million ($0.49 EPS); adjusted Q4 net profit was $66 million ($0.60 basic EPS).

• FY 2024 saw 18% in-year revenue growth from Q1 to Q4.

• Management targets sequential quarter-over-quarter revenue growth in 2025, with acceleration in the second half as new capacity and investments come online.

• Major investments in SiGe and SiPho capacity, Agrate (Italy), and New Mexico facilities to support future growth.

Financial highlights

• Q4 2024 gross profit was $87 million; operating profit was $46 million; net profit was $55 million ($0.49 EPS); adjusted net profit was $66.4 million ($0.57 diluted EPS).

• Full-year 2024 gross profit was $339 million; operating profit was $191 million; net profit was $208 million ($1.87 EPS); adjusted net profit was $241 million ($2.15 diluted EPS).

• Q1 2025 revenue guidance is $358 million (+/- 5%), representing 10% year-over-year growth.

• Cash from operating activities in FY 2024 was $449 million; year-end cash and cash equivalents were $272 million.

• FY 2024 capital expenditures were $431 million; free cash flow for the year was $17 million.

Outlook and guidance

• 2025 is expected to show year-over-year growth, with sequential quarterly increases and stronger H2 performance as new capacity ramps.

• Q1 2025 revenue guided at $358 million (+/- 5%), with SiGe and SiPho capacity as main growth drivers in H2.

• RF mobile segment expected to decline by upper teens percent in 2025, mainly due to Android market softness.

• Power management business unit targeted for growth, with discrete business expected to decrease.