Himax Technologies (HIMX) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $237.2M, up 6.7% sequentially and 4.2% year-over-year, surpassing guidance due to strong order momentum and favorable product mix.

• Full year 2024 revenues were $906.8M, down 4.1% year-over-year, but net profit rose to $79.8M, up 57.6% year-over-year, driven by strict cost controls and robust automotive IC growth.

• Automotive business accounted for nearly half of total revenues, with automotive TDDI and TCON sales up over 70% year-over-year and TDDI surpassing DDIC for the first time in Q4.

• Gross margin improved to 30.5% in Q4 and for the full year, up from 27.9% in 2023, reflecting cost improvements and product mix.

• Continued leadership in display driver ICs, TDDI, and non-driver solutions such as WiseEye AI, WLO, and LCOS microdisplays.

Financial highlights

• Q4 2024 operating income was $23.1M (9.7% of sales), up from 2.6% last quarter; Q4 after-tax profit was $24.6M, up from $13M last quarter.

• Q4 2024 EPS was $0.14, up 88.8% sequentially and 4.3% year-over-year; full-year 2024 EPS was $0.46, up from $0.29 in 2023.

• Full year 2024 operating income was $68.2M (7.5% of sales), up from $43.2M (4.6%) in 2023.

• Cash, cash equivalents, and financial assets totaled $224.6M at year-end, up from $206.4M a year ago.

• Inventories declined to $158.7M from $217.3M YoY, reflecting improved inventory management.

Outlook and guidance

• Q1 2025 revenue expected to decrease 8.5%-12.5% sequentially due to seasonal factors, but year-over-year performance projected flat to up 4.6%.

• Q1 2025 gross margin expected around 30.5%; profit per diluted ADS forecast at $0.09-$0.11, up 26%-54% year-over-year.

• Automotive TDDI and TCON technologies expected to maintain growth momentum; OLED ICs and WiseEye AI anticipated as future growth drivers.

• No benefit from tariff-related order pull-ins in automotive; inventory levels healthy.

• Management remains focused on R&D and strategic growth areas despite macroeconomic headwinds.