Semiconductor Manufacturing International (981) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $2.21 billion, up 1.7% sequentially and 31.5% year-over-year, with gross margin at 22.6% and profit attributable to the company at $108 million.

• Full-year 2024 revenue was $8.03 billion, up 27% year-over-year, with gross margin at 18% and profit attributable to the company at $493 million.

• EBITDA for Q4 was $1.28 billion, with a margin of 58%; full-year EBITDA was $4.38 billion, margin 54.5%.

• Net income attributable to owners was $492.7 million, down 45.4% year-over-year, mainly due to lower investment and financial income.

• Capacity expansion and product mix optimization contributed to revenue growth despite seasonal softness and rising depreciation.

Financial highlights

• Q4 operating profit was $214 million; full-year profit from operations was $474 million.

• Wafer shipment volume increased 36.7% to 8.02 million standard logic 8-inch equivalent wafers.

• Capital expenditure for 2024 was $7.33 billion; depreciation and amortization totaled $3.22 billion.

• Total assets at year-end were $49.2 billion, with $15 billion in cash and $11.6 billion in debt.

• R&D expenses increased 8.2% to $765.3 million, representing 9.5% of revenue.

Outlook and guidance

• Q1 2025 revenue expected to grow 6% to 8% sequentially, with gross margin between 19% and 21%.

• 2025 revenue growth is expected to outpace the industry average, with capital expenditure flat year-over-year.

• Depreciation is projected to increase by around 20% in 2025, impacting gross margin.