Vishay Intertechnology (VSH) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $714.7 million, with full-year revenue at $2.94 billion, both down from 2023 levels.

• Book-to-bill ratio reached 1.01 in Q4, the first positive in nine quarters, indicating improving demand.

• GAAP net loss attributable to stockholders was $(66.3) million for Q4 and $(31.2) million for FY 2024, driven by $66.5 million goodwill impairment and $40.6 million restructuring costs.

• Adjusted EPS was $0.00 for Q4 2024 and $0.48 for FY 2024, reflecting significant non-recurring charges.

• Strategic focus on capacity expansion, Vishay 3.0, and positioning for megatrends like e-mobility and sustainability.

Financial highlights

• Q4 gross margin was 19.9%, down from 25.6% in Q4 2023, impacted by Newport acquisition (approx. 190 bps negative effect).

• Q4 operating margin was -7.9% due to $66 million goodwill impairment; adjusted operating margin was 1.4%.

• Adjusted EBITDA for Q4 was $66.2 million (9.3% margin); full-year adjusted EBITDA was $317.4 million (10.8% margin).

• Free cash flow for Q4 was negative $76 million; full-year free cash flow was negative $143.4 million, mainly due to capacity investments.

• GAAP loss per share was $0.49; adjusted EPS was $0.00 for Q4.

Outlook and guidance

• Q1 2025 revenue expected at $710 million ± $20 million; gross margin guidance at 19.0% ± 50 bps, with Newport impact of negative 175-200 bps.

• FY 2025 capex projected at $300-350 million; normalized effective tax rate expected at 30-32%.

• Negative free cash flow expected again in 2025 due to ongoing capacity expansion.

• Commitment to maintain dividend and opportunistic share repurchases.

• Long-term goals for 2028: 9-11% revenue CAGR, gross margin of 31-33%, and adjusted EBITDA margin of 25-27%.