Hon Hai Precision Industry (2317) Q4 2024 earnings summary

Executive summary

• FY24 revenue reached NTD 6,859,615 million (NT$6.86 trillion), up 11% year-over-year; net income was NTD 152,705 million, a 7% increase year-over-year.

• Smart Consumer Electronics remained the largest segment, accounting for 46% of FY24 revenue, though its revenue declined 5% year-over-year.

• AI server business revenue grew 150% year-over-year, with FY25 expected to see continued strong growth and market share above 40%.

• The audit opinion was unqualified, with key audit matters on revenue recognition, inventory valuation, and goodwill impairment.

Financial highlights

• FY24 gross profit was NTD 428,946 million, up 11% year-over-year; operating income rose 20% to NTD 200,607 million.

• FY24 EPS was NTD 11.01, up from NTD 10.25 in FY23; Q4 EPS was NTD 3.34.

• Free cash flow for FY24 was NTD 29,690 million, down from NTD 333,808 million in FY23 due to higher capital expenditures.

• Cash and cash equivalents at year-end were NTD 937,108 million, down from NTD 1,197,700 million.

Outlook and guidance

• FY25 guidance anticipates growth in AI server revenue, with Q1 QoQ and YoY growth over 100% and shipments increasing each quarter.

• Board approved a cash dividend of NTD 5.8 per share for 2024, up from NTD 5.4.

• MODEL B EV mass production set for mid-2025; MODEL C mass production in North America by Q4 2025.

• New business combinations and joint ventures, including a major partnership with Softbank, are expected to support future expansion.