Wolfspeed (WOLF) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue was $201 million, nearly flat year-over-year and slightly above guidance midpoint, with Mohawk Valley Fab contributing $41 million and achieving 20% utilization in June.

• EV revenue more than doubled year-over-year, now over 50% of power device revenue, driven by Mohawk Valley momentum.

• Aggressive plan underway to optimize capital structure, reduce CapEx by $200 million for FY25, and accelerate transition to 200mm at Mohawk Valley.

• Management and board are considering alternatives to enhance shareholder value amid market undervaluation.

• Constructive discussions ongoing for CHIPS Act grants, with $640 million in 48D tax credits already accrued.

Financial highlights

• Q4 revenue was $201 million, with $105 million from Power and $96 million from Materials.

• Mohawk Valley Fab revenue was $41 million, up 46% quarter over quarter.

• Non-GAAP gross margin was 5%, impacted by underutilization and a Durham fab incident; GAAP gross margin was 1%.

• Adjusted EPS was -$0.89, above the midpoint of guidance; non-GAAP net loss was $112 million.

• Free cash flow for FY24 was negative $2.77 billion.

Outlook and guidance

• Fiscal Q1 2025 revenue guidance: $185 million–$215 million, with $50–$60 million from Mohawk Valley.

• Non-GAAP gross margin guidance: -2% to 6%, midpoint 2%, reflecting ongoing underutilization and repair costs.

• Non-GAAP net loss targeted between $138 million and $114 million for Q1.

• CapEx for FY25 expected at $1.2–$1.4 billion, down $200 million from prior guidance; FY26 CapEx to fall sharply to $200–$600 million.

• Mohawk Valley Fab utilization targeted at 25% by end of September 2024 and ~30% by March 2025.