onsemi Accelerates Transformation, Sets Sights on Profitable Growth Amid Market Uncertainty
onsemi, a leading global power management company, has reported strong results in its fourth quarter and full year 2024 earnings call. Despite market conditions, the company demonstrated resilience in its business model, delivering non-GAAP gross margin of 45.5% against revenue of $7.1 billion for the full year.
President and CEO Hassane El-Khoury highlighted the company's transformation journey, which began by focusing on intelligent power and sensing technologies. He emphasized that onsemi has invested in differentiated products to win with disruptive innovation and high-growth megatrends such as automotive and industrial AI data centers. The company has also streamlined manufacturing through its Fab Right strategy and improved operational efficiencies.
El-Khoury noted that market conditions were challenging, with demand declining late in the quarter and continuing into January. However, he expressed pride in the hard work of onsemi's worldwide teams, who have continued to deliver results amid a difficult environment. The company remains committed to its winning formula, prioritizing value and maintaining the integrity of its value proposition.
Onsemi's automotive revenue increased 8% sequentially in the fourth quarter, driven by share gains and new customer ramps in China and North America. China grew 18% quarter-over-quarter, but demand from all other regions weakened towards the end of the fourth quarter and continued into Q1. The company expects persisting volatility due to geopolitical uncertainty across all geographies as customers assess their manufacturing footprints and the impact of tariffs.
El-Khoury also highlighted the importance of monitoring demand signals for EV adoption, given the uncertainty around EV tax credits and slowing infrastructure deployment. Onsemi is well-positioned to capitalize on the growth opportunities in this market, with a strong portfolio of products and a commitment to innovation.
The company's results demonstrate its ability to navigate challenging market conditions and deliver profitable growth. With its focus on intelligent power and sensing technologies, onsemi is poised for continued success in the years ahead.
In his comments, El-Khoury emphasized that onsemi will not play in highly volatile, price-sensitive markets. The company is maintaining its stance of prioritizing value and positioning itself for profitable growth in the future.
The full year 2024 results show a strong revenue of $7.1 billion with non-GAAP gross margin of 45.5%, highlighting the company's commitment to delivering strong financial performance despite market challenges.
The presentation was attended by Hassane El-Khoury, President and CEO; Thad Trent, CFO; and Parag Agarwal, Vice President of Corporate Development and Investor Relations. The onsemi website has a replay of this conference call and their fourth quarter and full year 2024 earnings release.
The company's non-GAAP financial measures are available on the website along with certain limitations when using non-GAAP financial measures which is discussed in their earnings release.
