01—Abstract
Summary
Summary of the 10-K filed February 20, 2025. Cited figures are marked; the original filing is the authoritative source.
NXP Semiconductors N.V. reported a 5.0% year-over-year revenue decline for the fiscal year 2024, reaching $12.61 billiona, primarily driven by weakened demand in the Communication Infrastructure & Other, Automotive, and Industrial & IoT segments.
Despite this, the company maintained a robust GAAP gross margin of 56.4% and a GAAP operating margin of 27.1%. NXP actively returned capital to shareholders, distributing $1.04 billionb in dividends and repurchasing $1.37 billion in stock, reflecting a commitment to shareholder value. The company also made significant strategic moves, announcing three acquisitions: Aviva Links, TTTech Auto, and Kinara, Inc., which are expected to close in 2025, indicating a focus on expanding its technological capabilities and market reach.
Financially, NXP generated strong operating cash flow of $2.78 billionc, maintaining a healthy cash position of $3.29 billion at year-end. Investments in future manufacturing capacity through joint ventures in Germany (ESMC) and Singapore (VSMC) underscore the company's long-term strategic outlook. The company's R&D spending remained substantial at $2.35 billion, reflecting a continued emphasis on innovation in key growth areas like automotive advancements and edge computing.
02—Key points
Key Highlights
- Revenue decreased by 5.0% to $12.61 billion in 2024, impacted by a slowdown in key end markets.
- Maintained strong profitability with a GAAP gross margin of 56.4% and GAAP operating margin of 27.1%.
- Returned $2.41 billion in capital to shareholders through dividends ($1.04 billion) and share repurchases ($1.37 billion).
- Announced three strategic acquisitions (Aviva Links, TTTech Auto, Kinara, Inc.) to bolster its technology portfolio and market presence.
- Generated $2.78 billion in operating cash flow and ended the year with $3.29 billion in cash and cash equivalents.
- Invested in long-term manufacturing capacity through joint ventures in Germany (ESMC) and Singapore (VSMC).
- Continued significant investment in R&D totaling $2.35 billion, focusing on automotive, IoT, and connectivity solutions.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, NXP Semiconductors N.V. kept $0.20.
- Revenue$12.61B100.0%
- Cost of revenue−$5.50B43.6%
- Gross profit$7.12B56.4%
- Operating costs−$3.70B29.3%
- Operating income$3.42B27.1%
- Interest, other & tax−$875.0M6.9%
- Net income$2.54B20.2%
Where FY2024 revenue went
$12.61B- Cost of revenue: $5.50B, 44% of revenue
- Net income: $2.54B, 20% of revenue
- R&D: $2.35B, 19% of revenue
- SG&A: $1.16B, 9.2% of revenue
- Other operating costs: $191.0M, 1.5% of revenue
- Interest, other & tax: $875.0M, 6.9% of revenue
Kept 20% as net incomeOther operating costs $191.0M · 1.5%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 20, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $12.61B$13.28B | −5.0% |
| Cost of Revenue | $5.50B$5.72B | −4.0% |
| Gross Profit | $7.12B$7.55B | −5.7% |
| R&D Expenses | $2.35B$2.42B | −2.9% |
| SG&A Expenses | $1.16B$1.16B | +0.4% |
| Operating Expenses | $3.65B$3.88B | −5.9% |
| Operating Income | $3.42B$3.66B | −6.7% |
| Interest Expense | $398.00M$438.00M | −9.1% |
| Net Income | $2.54B$2.82B | −9.9% |
| EPS (Basic) | $9.84$10.83 | −9.1% |
| EPS (Diluted) | $9.73$10.70 | −9.1% |
| Shares Outstanding (Basic) | 255.21M258.38M | −1.2% |
| Shares Outstanding (Diluted) | 257.85M261.37M | −1.3% |
05—Questions
Frequently Asked Questions
What was NXP's financial performance in 2024?
In 2024, NXP Semiconductors N.V. experienced a 5.0% year-over-year decrease in revenue, reporting $12.61 billion. This was primarily due to a decline in the Communication Infrastructure & Other, Automotive, and Industrial & IoT segments. However, the company maintained healthy profitability with a GAAP gross margin of 56.4% and a GAAP operating margin of 27.1%.
How is NXP managing its capital and returning value to shareholders?
NXP Semiconductors demonstrated a strong commitment to shareholder returns in 2024 by paying $1.04 billion in dividends and repurchasing $1.37 billion of its common shares, totaling $2.41 billion in capital returned. The company also ended the year with a substantial cash balance of $3.29 billion, providing financial flexibility.
What are NXP's key strategic initiatives or growth drivers?
NXP's strategic focus includes significant investments in R&D, totaling $2.35 billion in 2024, to drive innovation in areas like automotive (ADAS, electrification), Industrial & IoT, and 5G. The company is also actively pursuing strategic acquisitions, having announced agreements to acquire Aviva Links, TTTech Auto, and Kinara, Inc., aiming to enhance its product portfolio and technological leadership. Investments in advanced manufacturing joint ventures in Germany and Singapore are also key long-term strategic moves.
How did NXP's different end markets perform in 2024?
In 2024, NXP's Automotive revenue decreased by 4.4% to $7.15 billion, and Industrial & IoT revenue declined by 3.5% to $2.27 billion. The Communication Infrastructure & Other segment saw a significant 19.7% decrease to $1.70 billion. The Mobile segment was a bright spot, growing by 12.8% to $1.50 billion, largely driven by mobile wallet products.
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