Tower Semiconductor (TSEM) Q4 2024 earnings summary

Executive summary

• Achieved 2024 annual revenue of $1.44 billion and net profit of $208 million, with Q4 revenue of $387 million, up 10% year-over-year and 18% sequentially from Q1 to Q4 2024.

• Q4 net profit was $55 million ($0.49 EPS), nearly flat year-over-year; adjusted Q4 net profit was $66.4 million ($0.57 diluted EPS).

• Q1 2025 revenue guidance is $385 million midpoint, representing 10% year-over-year growth, with sequential quarter-over-quarter increases expected throughout 2025 and acceleration in the second half as new capacity comes online.

• Strategic investments in SiGe and SiPho capacity, new product introductions, and customer partnerships position the company for sustained growth.

• Strategic consolidation of 150mm flows into 200mm Fab2 completed, streamlining production and improving efficiency.

Financial highlights

• Q4 2024 gross profit was $87 million, operating profit $46 million, and net profit $55 million ($0.49 EPS); adjusted Q4 net profit was $66.4 million ($0.57 diluted EPS).

• Full year 2024 gross profit was $339 million, operating profit $191 million, and net profit $208 million ($1.87 EPS); adjusted net profit was $241 million ($2.15 diluted EPS).

• Cash from operating activities in FY 2024 was $449 million; year-end cash balance was $272 million.

• FY 2024 capital expenditures were $431 million; free cash flow for the year was $17 million.

• 2023 results included $314 million from Intel merger contract termination and $33 million restructuring income, inflating prior year profits.

Outlook and guidance

• Q1 2025 revenue guided at $385 million midpoint, up 10% year-over-year.

• Sequential quarter-over-quarter revenue growth targeted for 2025, with stronger growth in H2 as new capacity comes online.

• SiGe and SiPho capacity expansions, along with Agrate ramp, expected to drive H2 revenue acceleration.