Q4 2024 ON Semiconductor Corp Earnings Call Transcript
Key Points
- ON Semiconductor Corp (ON) achieved a non-GAAP gross margin of 45.5% against revenue of $7.1 billion for the full year 2024.
- The company's automotive revenue increased 8% sequentially in the fourth quarter, driven by share gains and new customer ramps, particularly in China.
- ON Semiconductor Corp (ON) reported significant growth in AI data center and aerospace and defense sectors, with revenue increases of more than 40% and 50% respectively in 2024 over 2023.
- The company successfully closed the acquisition of Qorvo's silicon carbide junction field effect transistor business, enhancing its EliteSiC power solutions.
- ON Semiconductor Corp (ON) introduced the Treo platform, a new analog and mixed-signal platform, which is expected to unlock a $36 billion total addressable market opportunity with up to 70% gross margins.
- Fourth quarter revenue declined to $1.72 billion, with a non-GAAP gross margin of 45.3% and non-GAAP earnings per share of $0.95, impacted by a decline in demand.
- The company experienced a sequential decline in regional revenue, with Japan seeing the sharpest decline, and continued inventory digestion in key end markets.
- ON Semiconductor Corp (ON) anticipates continued volatility in the automotive sector due to geopolitical uncertainty and slower-than-expected EV ramp-up.
- The industrial revenue decreased 5% sequentially, with ongoing weakness in traditional parts of the business and a weak PMI across major regions.
- The company expects a significant decline in automotive revenue in Q1 2025, projected to be down 25% or more sequentially, primarily due to softness in China.
Good day and thank you for standing by. Welcome to the onsemi Fourth Quarter 2024 Earnings Conference Call. (Operator Instructions) Please be advised today's conference being recorded.
I would now like to hand the conference to your speaker today, Parag Agarwal, Vice President of Corporate Development and Investor Relations. Please go ahead.
Thank you, Kevin. Good morning and thank you for joining onsemi's Fourth Quarter and Full Year 2024 Results Conference Call. I'm joined today by Hassane El-Khoury, our President and CEO; and Thad Trent, our CFO.
This call is being webcast on the Investor Relations section of our website at www.onsemi.com. A replay of this webcast, along with our fourth quarter and full year 2024 earnings release, will be available on our website approximately one hour following this conference call, and the recorded website will be available for approximately 30
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