GLOBALFOUNDRIES (GFS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $1.83B, up 5% sequentially but down 1% year-over-year; full-year revenue was $6.75B, down 9% from 2023 due to industry downturn and lower utilization.

• Q4 net loss was $729M, driven by a $935M impairment charge on legacy Malta Fab 8 assets; full-year net loss was $262M, while Non-IFRS net income was $256M for Q4 and $870M for the year.

• Non-IFRS adjusted EBITDA for Q4 was $661M (36.1% margin); full-year Non-IFRS adjusted EBITDA was $2.48B (36.7% margin).

• Generated $1.1B in Non-IFRS adjusted free cash flow for 2024, exceeding the $1B target; ended year with $4.2B in cash, cash equivalents, and marketable securities.

• Leadership transition announced: Tim Breen appointed CEO, Niels Anderskouv as President and COO, and Thomas Caulfield moving to Executive Chairman.

Financial highlights

• Q4 gross margin was 24.5% (Non-IFRS: 25.4%), down 380 bps year-over-year; full-year gross margin was 24.5% (Non-IFRS: 25.3%), down 390 bps.

• Q4 operating margin was -38.3% (Non-IFRS: 15.6%) due to impairment; full-year operating margin was -3.2% (Non-IFRS: 13.6%).

• Q4 diluted loss per share was $1.32 (Non-IFRS EPS: $0.46); full-year diluted loss per share was $0.48 (Non-IFRS EPS: $1.56).

• Q4 wafer shipments rose 8% year-over-year to 595K; full-year shipments down 4% to 2.12M.

• Q4 CapEx was $135M (7% of revenue); full-year CapEx was $625M (9% of revenue).

Outlook and guidance

• Q1 2025 revenue expected between $1.55B and $1.6B, with non-wafer revenue at ~10%.

• Q1 2025 Non-IFRS gross margin expected at 23.0% (mid-point); Non-IFRS diluted EPS guidance: $0.24–$0.34.

• 2025 non-IFRS net CapEx expected at ~$700M; focus remains on aligning capacity with demand.

• Company expects to exit 2025 with adjusted gross margins of ~30% and continued sequential growth.

• Management expects 2025 to be a growth year, citing strong design win momentum and product portfolio positioning.