Tower Q4 2024 Earnings Report

Key Takeaways

Tower Semiconductor reported Q4 2024 revenues of $387 million, marking a 10% YoY increase. Net profit was $55 million, with a basic EPS of $0.49. Operating profit reached $46 million, while free cash flow was $8 million after investments in property and equipment. The company maintained its target of sequential revenue growth and expects further expansion in 2025.

Total Revenue

$387M

Previous year: $352M

+10.1%

EPS

$0.6

Previous year: $0.55

+9.1%

Operating Margin

12%

Gross Margin

22.44%

Free Cash Flow Margin

2.07%

Gross Profit

$86.9M

Previous year: $72.6M

+19.6%

Cash and Equivalents

$1.22B

Previous year: $1.24B

-1.5%

Free Cash Flow

$7.46M

Previous year: -$10.9M

-168.6%

Total Assets

$3.08B

Previous year: $2.92B

+5.5%

Tower Revenue

Tower EPS

Forward Guidance

Tower Semiconductor expects Q1 2025 revenues to be around $358 million, reflecting 10% YoY growth. The company anticipates continued sequential growth throughout 2025, with acceleration in the second half driven by increasing production shipments.

Positive Outlook

Sequential revenue growth continued in Q4 2024.
Q1 2025 revenue guidance indicates 10% YoY growth.
Strategic capacity investments are expected to boost shipments.
Operational efficiency improvements from Fab consolidation.
Strong customer partnerships driving demand.

Challenges Ahead

Lower free cash flow due to high capital expenditures.
Incremental costs from new facility operations impacting margins.
Potential macroeconomic uncertainties affecting demand.
Supply chain risks remain a challenge.
Ongoing geopolitical risks could impact global operations.