ON Semiconductor(ON) - 2024 Q4 - Annual Results

Revenue Performance - Fourth quarter revenue was $1,722.5 million, a decrease of 15% year-over-year from $2,018.1 million in Q4 2023[2] - Full year 2024 revenue totaled $7,082.3 million, down 14% from $8,253.0 million in 2023[3] - Revenue for the quarter ended December 31, 2024, was $1,722.5 million, a decrease of 16.4% compared to $2,018.1 million for the same quarter in 2023[18] - Total revenue for the quarter was $1,862.7 million, showing a slight increase from $1,735.2 million in the previous quarter[28] Profitability Metrics - Fourth quarter GAAP gross margin was 45.2%, compared to 46.7% in Q4 2023, while non-GAAP gross margin was 45.3%[4] - Fourth quarter net income attributable to onsemi was $379.9 million, down from $562.7 million in Q4 2023[2] - The company reported a diluted earnings per share of $0.88 for Q4 2024, down from $1.28 in Q4 2023[2] - Operating income decreased to $408.6 million for the quarter, compared to $612.1 million in the same quarter of 2023, reflecting a decline of 33.2%[18] - Net income attributable to ON Semiconductor Corporation for the quarter was $379.9 million, down from $562.7 million in the same quarter of 2023, representing a decrease of 32.5%[18] - Non-GAAP operating income for the year ended December 31, 2024, was $1,973.9 million, compared to $2,665.2 million for the previous year, indicating a decline of 26.0%[24] - Non-GAAP diluted earnings per share for the quarter was $0.95, down from $0.99 in the previous quarter, reflecting a decrease of approximately 4.0%[26] Cash Flow and Financial Discipline - Full year 2024 free cash flow reached $1.2 billion, representing a 300% increase year-over-year[4] - The company returned 54% of its 2024 free cash flow through share repurchases[1] - Net cash provided by operating activities for the quarter was $579.7 million, an increase from $465.8 million in the previous quarter[22] - Free cash flow for the quarter was $422.4 million, compared to $304.1 million in the prior quarter, representing a significant increase of approximately 38.9%[30] - The company plans to maintain financial discipline and streamline operations amid market volatility[1] Balance Sheet Highlights - Total current assets increased to $6,752.0 million as of December 31, 2024, compared to $5,912.3 million a year earlier, marking a growth of 14.2%[20] - Cash and cash equivalents rose to $2,691.3 million, up from $2,483.0 million in the previous year, indicating an increase of 8.4%[20] - Total liabilities decreased to $5,275.3 million from $5,414.6 million year-over-year, a reduction of 2.6%[20] - ON Semiconductor Corporation's total stockholders' equity increased to $8,814.5 million as of December 31, 2024, compared to $7,800.6 million a year earlier, representing a growth of 12.9%[20] Research and Development - Research and development expenses increased to $155.2 million for the quarter, compared to $150.2 million in the same quarter last year, reflecting a rise of 3.3%[18] Market Focus - The automotive and industrial markets remain a focus for onsemi, driving innovations in vehicle electrification and sustainable energy[11]