NXP Semiconductors Reports Fourth Quarter and Full-Year 2024 Results

Core Insights - NXP Semiconductors reported a full-year revenue of $12.61 billion for 2024, reflecting a 5% decrease year-on-year, with fourth-quarter revenue at $3.11 billion, down 9% year-on-year, but slightly above guidance [1][2] Financial Performance - Fourth-quarter GAAP gross margin was 53.9%, with a GAAP operating margin of 21.7% and a GAAP diluted net income per share of $1.93. For the full year, GAAP gross margin was 56.4%, operating margin was 27.1%, and diluted net income per share was $9.73 [2][4] - Non-GAAP gross margin for Q4 was 57.5%, with a non-GAAP operating margin of 34.2% and a non-GAAP diluted net income per share of $3.18. For the full year, non-GAAP gross margin was 58.1%, operating margin was 34.6%, and diluted net income per share was $13.09 [2][4] - Cash flow from operations for Q4 was $391 million, with net capex investments of $99 million, resulting in non-GAAP free cash flow of $292 million. For the full year, cash flow from operations was $2,782 million, with net capex investments of $693 million, leading to non-GAAP free cash flow of $2,089 million [2][4] Capital Return and Shareholder Engagement - In Q4 2024, NXP executed a capital return policy, paying $258 million in cash dividends and repurchasing $455 million of common shares, totaling $713 million, which represented 244% of fourth-quarter non-GAAP free cash flow. Over the trailing twelve months, capital return to shareholders was $2.4 billion, or 115% of non-GAAP free cash flow [2][4] Product Development and Acquisitions - NXP introduced the S32J family of high-performance automotive Ethernet switches and network controllers in October 2024, aimed at software-defined vehicle development [2] - The company announced the adoption of its Trimension® NCJ29Dx Ultra Wide Band (UWB) product family by Audi for secure car access features [2] - NXP launched the i.MX 94 family of applications processors for industrial control and announced a wireless battery management system based on UWB connectivity [2] - NXP entered into agreements to acquire Aviva Links for $242.5 million and TT Tech Auto for $625 million, enhancing its in-vehicle networking and software-defined vehicle capabilities [2][3]