GLOBALFOUNDRIES (GFS) Q4 2023 earnings summary

Executive summary

• Q4'23 revenue was $1.854B, down 12% YoY; wafer shipments fell 5% to 552k 300mm equivalents, and adjusted EBITDA was $773M, down 6%.

• FY23 revenue was $7.392B, down 9%; adjusted EBITDA was $2.763B and adjusted EBITDA margin was 37.4%.

Financial highlights

• Q4'23 net income was $278M versus $668M; adjusted net income was $356M versus $800M, and diluted EPS was $0.50 versus $1.21.

• FY23 net income was $1.018B versus $1.446B; adjusted net income was $1.251B versus $1.717B, and diluted EPS was $1.83 versus $2.62.

• FY23 operating profit was $1.129B, down 3%; adjusted operating profit was $1.369B, down 5%.

Outlook and guidance

• Q1'24 IFRS guidance: revenue $1.500B–$1.540B, gross profit $329M–$371M, operating profit $60M–$130M, net income $40M–$106M and diluted EPS $0.07–$0.19.

• Q1'24 adjusted guidance: gross profit $345M–$385M, operating profit $120M–$180M, net income $100M–$156M and diluted EPS $0.18–$0.28.

• Q1'24 adjusted margin midpoints: gross margin 24.0%, operating margin 9.9% and net income margin 8.4%.