01—Abstract
Summary
Summary of the 10-K filed February 10, 2025. Cited figures are marked; the original filing is the authoritative source.
ON Semiconductor Corporation (ON), which operates under the onsemi brand, reported full-year 2024 revenue of $7,082.3 milliona, a decrease of 14.2% from $8,253.0 million in 2023.
Net income attributable to ON Semiconductor Corporation was $1,572.8 millionb, compared with $2,183.7 million in 2023, and operating income was $1,767.7 million versus $2,538.7 million. Gross margin declined to 45.4% from 47.1%, which the company attributes primarily to decreased demand in its automotive and industrial end-markets, resulting in lower sales volumes and underutilized manufacturing facilities. Diluted EPS was $3.63 in 2024 compared with $4.89 in 2023.
The company is organized into three segments: Power Solutions Group (PSG, 47% of 2024 revenue), Analog and Mixed-Signal Group (AMG, 37%) and Intelligent Sensing Group (ISG, 16%). Automotive accounted for 55% and industrial for 25% of 2024 revenue. The company continued its 2024 business realignment, with approximately 1,200 employees notified of termination and restructuring, asset impairment and other charges of $133.9 millionc recorded in operating expenses.
Cash flow from operations was $1,906.4 milliond, capital expenditures were $694.0 million, and the company repurchased approximately 9.1 million shares for about $650 million during 2024. Cash and cash equivalents were $2,691.3 million at year-end, against gross long-term debt of $3,379.9 million.
Subsequent to year-end, on January 14, 2025, the company completed the acquisition of the SiC JFET technology business from Qorvo US, Inc. for $118.8 million in cash, which the company says complements its EliteSiC power portfolio and targets AC-DC power supply needs for AI data centers. The company also repurchased 1.6 million shares for $100.0 million in January 2025 under its Share Repurchase Program, which authorizes up to $3.0 billion through December 31, 2025, with $1,786.0 million remaining at year-end.
02—Key points
Key Highlights
- Revenue of $7,082.3 million in 2024, down 14.2% from $8,253.0 million in 2023, driven by lower sales volumes across all three segments.
- Net income attributable to ON Semiconductor Corporation of $1,572.8 million in 2024 versus $2,183.7 million in 2023; diluted EPS of $3.63 versus $4.89.
- Gross margin fell to 45.4% from 47.1%, with PSG gross margin declining to 41.3% from 47.0% due to lower volume and underutilization, while AMG gross margin rose to 50.1%.
- Segment mix for 2024: PSG 47.3% of revenue, AMG 36.8%, ISG 15.9%; end-market mix: automotive 55%, industrial 25%, other 20%.
- Restructuring, asset impairments and other charges, net of $133.9 million in 2024 tied to the 2024 business realignment, under which approximately 1,200 employees were notified of termination.
- Operating cash flow of $1,906.4 million and capital expenditures of $694.0 million in 2024; capital expenditures are expected to be approximately 5% of revenue in 2025.
- Acquisition of the SiC JFET business from Qorvo for $118.8 million in cash completed January 14, 2025, and $1.5 billion revolving credit facility with approximately $1.1 billion available at year-end.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, On Semiconductor kept $0.22.
- Revenue$7.08B100.0%
- Cost of revenue−$3.87B54.6%
- Gross profit$3.22B45.4%
- Operating costs−$1.45B20.5%
- Operating income$1.77B25.0%
- Interest, other & tax−$194.9M2.8%
- Net income$1.57B22.2%
Where FY2024 revenue went
$7.08B- Cost of revenue: $3.87B, 55% of revenue
- Net income: $1.57B, 22% of revenue
- Operating costs: $1.45B, 20% of revenue
- Interest, other & tax: $194.9M, 2.8% of revenue
Kept 22% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 10, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $7.08B$8.25B | −14.2% |
| Cost of Revenue | $3.87B$4.37B | −11.5% |
| Gross Profit | $3.22B$3.88B | −17.2% |
| Operating Expenses | $1.45B$1.34B | +7.7% |
| Operating Income | $1.77B$2.54B | −30.4% |
| Net Income | $1.57B$2.18B | −28.0% |
| EPS (Basic) | $3.68$5.07 | −27.4% |
| EPS (Diluted) | $3.63$4.89 | −25.8% |
| Shares Outstanding (Basic) | 427.40M430.70M | −0.8% |
| Shares Outstanding (Diluted) | 432.70M446.80M | −3.2% |
05—Questions
Frequently Asked Questions
Why did ON Semiconductor's revenue and profitability decline in 2024?
The filing attributes the decline primarily to decreased demand in the automotive and industrial end-markets, which lowered sales volumes and led to underutilization of manufacturing facilities. Revenue fell $1,170.7 million, gross profit fell $667.4 million, and operating income fell $771.0 million year over year.
How much debt does ON Semiconductor carry and when does it mature?
Gross long-term debt was $3,379.9 million as of December 31, 2024, consisting of $375.0 million under the Revolving Credit Facility due 2028, $1,500.0 million of 0.50% Notes due 2029, $804.9 million of 0% Notes due 2027, and $700.0 million of 3.875% Notes due 2028. The filing reports no debt maturities in 2025 or 2026.
How much has ON Semiconductor returned to shareholders through buybacks?
In 2024 the company repurchased approximately 9.1 million shares for an aggregate purchase price of about $650 million. In January 2025 it acquired 1.6 million shares for $100.0 million. Approximately $1,786.0 million remained authorized under the $3.0 billion Share Repurchase Program at year-end. The company has not declared or paid cash dividends since its initial public offering.
What is the company's restructuring plan and what does it cost?
The 2024 business realignment, part of the company's 'Fab Right' manufacturing strategy, notified approximately 1,200 employees of termination and relocated around 300 more. Restructuring, asset impairments and other charges, net totaled $133.9 million in 2024, including $75.7 million of severance costs and $37.8 million of asset impairments tied to the realignment.
What does the Qorvo SiC JFET acquisition add to the business?
The company completed the acquisition of the SiC JFET technology business from Qorvo US, Inc. on January 14, 2025, for $118.8 million in cash, subject to working capital adjustments. The company says it complements the EliteSiC power portfolio in the PSG segment and helps address high energy efficiency and power density needs in the AC-DC stage of power supplies for AI data centers.
06—Continue