Photronics (PLAB) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $223 million, up 6% sequentially but down 2% year-over-year, driven by high-end IC and G10.5+ FPD segments, especially in the US and Asia.

• Full-year 2024 revenue was $867 million, the second highest in company history, but down 3% from 2023 due to semiconductor industry softness.

• Q4 net income was $34 million, contributing to a record $131 million for the year; non-GAAP EPS for Q4 was $0.59.

• Cash and short-term investments rose to $641 million, up 25% year-over-year, with total debt reduced to $18 million.

• Capital allocation focused on growth investments, shareholder returns, and business development to drive long-term value.

Financial highlights

• Q4 revenue grew 5% sequentially, with IC revenue up 5% and FPD revenue up 7%; Q4 operating margin was 25.1%.

• Full-year operating margin was 25.6%; non-GAAP EPS for 2024 was $2.05.

• Operating cash flow for the year was $261 million, representing 30% of revenue.

• Q4 capital expenditures were $43.2 million; full-year CapEx was $131 million.

• Debt reduced to $18 million, a 27% decrease year-over-year.

Outlook and guidance

• Q1 FY25 revenue expected between $208–$216 million, with non-GAAP EPS projected at $0.43–$0.49 per diluted share and operating margin between 23% and 25%.

• Full-year 2025 CapEx target is $200 million, focused on U.S. IC capacity expansion.

• Management is cautiously optimistic for 2025, citing AI, supply chain regionalization, and edge computing as growth drivers.