Amkor Technology Reports Financial Results for the Fourth Quarter and Full Year 2024

Rhea-AI Summary

Amkor Technology (AMKR) reported its Q4 and full-year 2024 financial results. Q4 net sales reached $1.63 billion with net income of $106 million ($0.43 per diluted share). For the full year 2024, the company recorded net sales of $6.32 billion, gross profit of $933 million, and net income of $354 million ($1.43 per diluted share).

The company experienced weakness in automotive, industrial, and communications markets, but achieved record revenue in computing with growth in ARM-based PCs and AI devices. Notable developments include the successful ramp of their Vietnam facility and securing CHIPS funding for U.S. manufacturing.

The Board approved a 5% increase in quarterly dividend to $0.08269 per share and a special dividend of $0.40546 per share. For Q1 2025, Amkor projects net sales between $1.225-1.325 billion with gross margin of 10.0-13.0%.

Positive

• Record revenue achieved in computing end market
• Secured CHIPS funding for U.S. manufacturing expansion
• 5% increase in quarterly dividend
• Special dividend of $0.40546 per share ($100 million total)
• Strong cash position with $1.65 billion in cash and short-term investments

Negative

• Full year net sales declined to $6.32B from $6.50B in 2023
• Q4 net sales decreased to $1.63B from $1.75B year-over-year
• Operating income margin declined to 6.9% from 7.2% year-over-year
• Weakness in automotive, industrial, and communications markets
• Q1 2025 guidance shows significant sequential revenue decline

Insights

Financial Analyst

Amkor's FY2024 performance reveals a complex narrative of strategic resilience amid market headwinds. The 5% year-over-year revenue decline to $6.32 billion masks significant underlying strengths, particularly in the computing segment where AI-related demand drove record revenues. The company's gross margin improved slightly to 14.8% from 14.5%, demonstrating effective cost management despite inflationary pressures.

The Q1 2025 guidance suggests near-term challenges, with projected revenue of $1.225-1.325 billion representing a sequential decline. However, the planned $850 million capital expenditure for 2025 indicates strong commitment to long-term growth, particularly in advanced packaging capabilities critical for AI and high-performance computing applications.

Three strategic developments merit attention:

• The successful Vietnam facility ramp-up diversifies manufacturing capabilities and reduces geopolitical risks
• Securing CHIPS funding strengthens Amkor's position in the U.S. semiconductor ecosystem
• Record Advanced SiP revenue highlights the company's technical leadership in high-value packaging solutions

The combination of a 5% dividend increase and a special dividend totaling $100 million reflects strong cash flow generation ($1.09 billion from operations) and balanced capital allocation. With $1.65 billion in cash against $1.16 billion in debt, Amkor maintains financial flexibility for strategic investments while returning value to shareholders.

TEMPE, Ariz.--(BUSINESS WIRE)-- Amkor Technology, Inc. (Nasdaq: AMKR), a leading provider of semiconductor packaging and test services, today announced financial results for the fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024 Highlights:

• Fourth quarter net sales $1.63 billion
• Net income $106 million, earnings per diluted share $0.43

Full Year 2024 Highlights:

• Net sales $6.32 billion
• Gross profit $933 million, operating income $438 million
• Net income $354 million, earnings per diluted share $1.43
• EBITDA $1.09 billion
• Net cash from operations $1.09 billion, free cash flow $359 million

“In 2024, weakness in the automotive and industrial and communications end markets contributed to a full year decline. In contrast, we achieved record revenue in our computing end market with growth in ARM-based PCs and AI devices,” said Giel Rutten, Amkor’s president and chief executive officer. “During the year, we also successfully ramped our new facility in Vietnam, secured CHIPS funding to bolster U.S. manufacturing, and set a new record for Advanced SiP revenue. We remain confident in our long-term strategy and continue to invest in technology for advanced packaging and our broad geographic footprint with a focus on industry megatrends.”

Financial Results

($ in millions, except per share data)	Q4 2024	Q3 2024	Q4 2023	2024	2023
Net sales	$1,629	$1,862	$1,752	$6,318	$6,503
Gross margin	15.1%	14.6%	15.9%	14.8%	14.5%
Operating income	$134	$149	$159	$438	$470
Operating income margin	8.3%	8.0%	9.1%	6.9%	7.2%
Net income attributable to Amkor	$106	$123	$118	$354	$360
Earnings per diluted share	$0.43	$0.49	$0.48	$1.43	$1.46
EBITDA (1)	$302	$309	$326	$1,091	$1,135
Net cash provided by operating activities				$1,089	$1,270
Annual free cash flow (1)				$359	$534
(1) EBITDA and free cash flow are non-GAAP measures. The reconciliations to the comparable GAAP measures are included below under “Selected Operating Data.”

At December 31, 2024, total cash and short-term investments was $1.65 billion, and total debt was $1.16 billion.

On November 13, 2024, Amkor’s Board of Directors announced a 5% increase in the quarterly cash dividend on the company’s common stock, from $0.07875 per share to $0.08269 per share. The Board of Directors also approved a special cash dividend of $0.40546 per share, or approximately $100 million, on the company’s common stock. The increased quarterly dividend and special dividend were each paid on December 23, 2024. The declaration and payment of future dividends, as well as any record and payment dates, are subject to the approval of the Board of Directors.

Business Outlook

The following information presents Amkor’s guidance for the first quarter 2025 (unless otherwise noted):

• Net sales of $1.225 billion to $1.325 billion
• Gross margin of 10.0% to 13.0%
• Net income of $3 million to $43 million, or $0.01 to $0.17 per diluted share
• Full year 2025 capital expenditures of approximately $850 million

Conference Call Information

Amkor will conduct a conference call on Monday, February 10, 2025, at 5:00 p.m. Eastern Time. This call may include material information not included in this press release. To access the live audio webcast and the accompanying slide presentation, visit the Investor Relations section of Amkor’s website, located at ir.amkor.com. The live call can also be accessed by dialing 1-877-407-4019 or 1-201-689-8337.

About Amkor Technology, Inc.

Amkor Technology, Inc. is the world's largest US headquartered OSAT (outsourced semiconductor assembly and test) service provider. Since its founding in 1968, Amkor has pioneered the outsourcing of IC packaging and test services and is a strategic manufacturing partner for the world’s leading semiconductor companies, foundries, and electronics OEMs. Amkor provides turnkey manufacturing services for the communication, automotive and industrial, computing, and consumer industries, including but not limited to smartphones, electric vehicles, data centers, artificial intelligence and wearables. Amkor’s operational base includes production facilities, research and development centers and sales and support offices located in key electronics manufacturing regions in Asia, Europe and the United States. For more information visit amkor.com.

AMKOR TECHNOLOGY, INC. Selected Operating Data
	Q4 2024				Q3 2024				Q4 2023				2024				2023
Net Sales Data:
Net sales (in millions):
Advanced Products (1)		$1,357				$1,568				$1,430				$5,175				$5,033
Mainstream Products (2)		272				294				322				1,143				1,470
Total net sales		$1,629				$1,862				$1,752				$6,318				$6,503
Packaging services		88	%			90	%			89	%			89	%			88	%
Test services		12	%			10	%			11	%			11	%			12	%
Net sales from top ten customers		73	%			74	%			71	%			72	%			69	%
End Market Distribution Data:
Communications (smartphones, tablets)		44	%			52	%			56	%			48	%			50	%
Computing (data center, infrastructure, PC/laptop, storage)		21	%			16	%			13	%			19	%			16	%
Automotive, industrial and other (ADAS, electrification, infotainment, safety)		17	%			16	%			19	%			18	%			21	%
Consumer (AR & gaming, connected home, home electronics, wearables)		18	%			16	%			12	%			15	%			13	%
Total		100	%			100	%			100	%			100	%			100	%
Gross Margin Data:
Net sales		100.0	%			100.0	%			100.0	%			100.0	%			100.0	%
Cost of sales:
Materials		54.8	%			58.4	%			56.5	%			55.1	%			55.1	%
Labor		9.9	%			8.7	%			9.1	%			9.9	%			9.9	%
Depreciation		8.4	%			7.4	%			8.2	%			8.5	%			8.9	%
Other manufacturing		11.8	%			10.9	%			10.3	%			11.7	%			11.6	%
Gross margin		15.1	%			14.6	%			15.9	%			14.8	%			14.5	%
(1) Advanced products include flip chip, memory and wafer-level processing and related test services.
(2) Mainstream products include all other wirebond packaging and related test services.

AMKOR TECHNOLOGY, INC. Selected Operating Data
In this press release, we refer to EBITDA, which is not defined by U.S. GAAP. We define EBITDA as net income before interest expense, income tax expense and depreciation and amortization. We believe EBITDA to be relevant and useful information to our investors because it provides additional information in assessing our financial operating results. Our management uses EBITDA in evaluating our operating performance, and our ability to service debt, and our ability to fund capital expenditures and pay dividends. However, EBITDA has certain limitations in that it does not reflect the impact of certain expenses on our consolidated statements of income, including interest expense, which is a necessary element of our costs because we have borrowed money in order to finance our operations, income tax expense, which is a necessary element of our costs because taxes are imposed by law, and depreciation and amortization, which is a necessary element of our costs because we use capital assets to generate income. EBITDA should be considered in addition to, and not as a substitute for, or superior to, operating income, net income or other measures of financial performance prepared in accordance with U.S. GAAP. Furthermore, our definition of EBITDA may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of EBITDA to U.S. GAAP net income.
Non-GAAP Financial Measures Reconciliation:
(in millions)	Q4 2024				Q3 2024				Q4 2023				2024				2023
EBITDA Data:
Net income	$	106			$	123			$	119			$	356			$	362
Plus: Interest expense		17				16				15				65				59
Plus: Income tax expense		30				19				33				75				82
Plus: Depreciation & amortization		149				151				159				595				632
EBITDA	$	302			$	309			$	326			$	1,091			$	1,135

AMKOR TECHNOLOGY, INC. Selected Operating Data
In this press release, we refer to free cash flow, which is not defined by U.S. GAAP. We define free cash flow as net cash provided by operating activities less payments for property, plant and equipment, plus proceeds from the sale of, insurance recovery for and grants for property, plant and equipment, if applicable. We believe free cash flow to be relevant and useful information to our investors because it provides them with additional information in assessing our liquidity, capital resources and financial operating results. Our management uses free cash flow in evaluating our liquidity, our ability to service debt, our ability to fund capital expenditures and our ability to pay dividends and the amount of dividends to be paid. However, free cash flow has certain limitations, including that it does not represent the residual cash flow available for discretionary expenditures since other, non-discretionary expenditures, such as mandatory debt service, are not deducted from the measure. The amount of mandatory versus discretionary expenditures can vary significantly between periods. This measure should be considered in addition to, and not as a substitute for, or superior to, other measures of liquidity or financial performance prepared in accordance with U.S. GAAP, such as net cash provided by operating activities. Furthermore, our definition of free cash flow may not be comparable to similarly titled measures reported by other companies. Below is our reconciliation of free cash flow to U.S. GAAP net cash provided by operating activities.
Non-GAAP Financial Measures Reconciliation:
(in millions)	2024				2023
Free Cash Flow Data:
Net cash provided by operating activities	$	1,089			$	1,270
Less: Payments for property, plant and equipment		(744	)			(749	)
Plus: Proceeds from sale of and grants for property, plant and equipment		14				13
Free cash flow	$	359			$	534

AMKOR TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)
	For the Three Months Ended December 31,								For the Year Ended December 31,
	2024				2023				2024				2023
Net sales	$	1,629,118			$	1,751,811			$	6,317,692			$	6,503,065
Cost of sales		1,382,408				1,472,702				5,384,480				5,559,912
Gross profit		246,710				279,109				933,212				943,153
Selling, general and administrative		69,427				78,842				331,806				295,393
Research and development		42,848				41,603				162,951				177,473
Total operating expenses		112,275				120,445				494,757				472,866
Operating income		134,435				158,664				438,455				470,287
Interest expense		17,079				15,478				64,945				59,000
Other (income) expense, net		(18,233	)			(8,342	)			(57,506	)			(32,554	)
Total other (income) expense, net		(1,154	)			7,136				7,439				26,446
Income before taxes		135,589				151,528				431,016				443,841
Income tax expense		29,788				32,516				75,481				81,710
Net income		105,801				119,012				355,535				362,131
Net income attributable to noncontrolling interests		(152	)			(1,450	)			(1,523	)			(2,318	)
Net income attributable to Amkor	$	105,649			$	117,562			$	354,012			$	359,813
Net income attributable to Amkor per common share:
Basic	$	0.43			$	0.48			$	1.44			$	1.46
Diluted	$	0.43			$	0.48			$	1.43			$	1.46
Shares used in computing per common share amounts:
Basic		246,654				245,799				246,344				245,628
Diluted		247,864				247,243				247,818				247,176
*We periodically assess the estimated useful lives of our property, plant and equipment. Based on our assessment of test equipment and its increased interchangeability enabling broader and longer use, we extended the estimated useful lives of test equipment from five years to seven years as of January 1, 2024. As a result, depreciation expense was reduced by approximately $13 million and $59 million for the three months ended and the year ended December 31, 2024, respectively. This benefited net income by approximately $11 million and $49 million and diluted earnings per share by $0.05 and $0.20 for each period, respectively.

AMKOR TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
	December 31,
	2024				2023
ASSETS
Current assets:
Cash and cash equivalents	$	1,133,553			$	1,119,818
Short-term investments		512,984				474,869
Accounts receivable, net of allowances		1,055,013				1,149,493
Inventories		310,910				393,128
Other current assets		61,012				58,502
Total current assets		3,073,472				3,195,810
Property, plant and equipment, net		3,576,148				3,299,445
Operating lease right of use assets		109,730				117,006
Goodwill		17,947				20,003
Restricted cash		759				799
Other assets		166,272				138,062
Total assets	$	6,944,328			$	6,771,125
LIABILITIES AND EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt	$	236,029			$	131,624
Trade accounts payable		712,887				754,453
Capital expenditures payable		123,195				106,368
Short-term operating lease liability		26,827				33,616
Accrued expenses		356,337				358,414
Total current liabilities		1,455,275				1,384,475
Long-term debt		923,431				1,071,832
Pension and severance obligations		70,594				87,133
Long-term operating lease liabilities		57,983				56,837
Other non-current liabilities		253,880				175,813
Total liabilities		2,761,163				2,776,090
Amkor stockholders’ equity:
Preferred stock		—				—
Common stock		293				292
Additional paid-in capital		2,031,643				2,008,170
Retained earnings		2,335,132				2,159,831
Accumulated other comprehensive income		7,510				16,350
Treasury stock		(225,033	)			(222,335	)
Total Amkor stockholders’ equity		4,149,545				3,962,308
Noncontrolling interests in subsidiaries		33,620				32,727
Total equity		4,183,165				3,995,035
Total liabilities and equity	$	6,944,328			$	6,771,125

AMKOR TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	For the Year Ended December 31,
	2024				2023
Cash flows from operating activities:
Net income	$	355,535			$	362,131
Depreciation and amortization		594,663				631,508
Other operating activities and non-cash items		25,303				39,654
Changes in assets and liabilities		113,367				236,727
Net cash provided by operating activities		1,088,868				1,270,020
Cash flows from investing activities:
Payments for property, plant and equipment		(743,796	)			(749,467	)
Proceeds from sale of property, plant and equipment		3,981				8,444
Proceeds from foreign exchange forward contracts		47,045				44,013
Payments for foreign exchange forward contracts		(88,623	)			(75,786	)
Payments for short-term investments		(568,711	)			(657,583	)
Proceeds from sale of short-term investments		65,502				94,242
Proceeds from maturities of short-term investments		474,097				379,344
Other investing activities		10,181				4,883
Net cash used in investing activities		(800,324	)			(951,910	)
Cash flows from financing activities:
Proceeds from revolving credit facilities		—				370,000
Payments of revolving credit facilities		—				(370,000	)
Proceeds from short-term debt		5,012				20,712
Payments of short-term debt		(9,731	)			(19,448	)
Proceeds from long-term debt		172,651				168,335
Payments of long-term debt		(177,214	)			(175,427	)
Payments of finance lease obligations		(72,255	)			(66,398	)
Payments of dividends		(178,605	)			(74,686	)
Other financing activities		(290	)			(2,295	)
Net cash used in financing activities		(260,432	)			(149,207	)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash		(14,417	)			(10,692	)
Net increase in cash, cash equivalents and restricted cash		13,695				158,211
Cash, cash equivalents and restricted cash, beginning of period		1,120,617				962,406
Cash, cash equivalents and restricted cash, end of period	$	1,134,312			$	1,120,617

Forward-Looking Statement Disclaimer

This press release contains forward-looking statements within the meaning of the federal securities laws. You are cautioned not to place undue reliance on forward-looking statements, which are often characterized by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” or “intend,” by the negative of these terms or other comparable terminology or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on our current expectations, forecasts, estimates and assumptions. Because such statements include risks and uncertainties, actual results may differ materially from those anticipated in such forward-looking statements as a result of various factors, including, but not limited to, the following:

• dependence on the cyclical and volatile semiconductor industry and vulnerability to industry downturns and declines in global economic and financial conditions;
• dependence on key customers or concentration of customers in certain end markets, such as mobile communications and automotive;
• changes in costs, quality, availability and delivery times of raw materials, components and equipment;
• health conditions or pandemics, such as COVID-19, impacting labor availability and operating capacity, capital availability, the supply chain and consumer demand for our customers’ products and services;
• fluctuations in operating results and cash flows;
• our substantial indebtedness;
• dependence on international factories and operations and risks relating to trade restrictions and regional conflict;
• the effects of business, economic, political, legal and regulatory impacts or conflicts upon our global operations;
• fluctuations in interest rates and changes in credit risk;
• competition with established competitors in the packaging and test business, the internal capabilities of integrated device manufacturers and new competitors, including foundries and contract manufacturers;
• difficulty funding our liquidity needs, including as a result of disruptions to the banking system and capital markets;
• our substantial investments in equipment and facilities to support the demand of our customers;
• difficulty attracting, retaining or replacing qualified personnel;
• difficulty achieving the relatively high-capacity utilization rates necessary to realize satisfactory gross margins given our high percentage of fixed costs;
• maintaining an effective system of internal controls;
• the absence of backlog and the short-term nature of our customers’ commitments;
• our continuing development and implementation of changes to, and maintenance and security of, our information technology systems;
• the historical downward pressure on the prices of our packaging and test services;
• challenges with integrating diverse operations;
• fluctuations in our manufacturing yields;
• any changes in tax laws, taxing authorities not agreeing with our interpretation of applicable tax laws, including whether we continue to qualify for conditional reduced tax rates, or any requirements to establish or adjust valuation allowances on deferred tax assets;
• our ability to develop new proprietary technology, protect our proprietary technology, operate without infringing the proprietary rights of others and implement new technologies;
• conditions to, and obligations related to, the receipt of government incentives;
• environmental, health and safety liabilities and expenditures;
• warranty claims, product return and liability risks, and the risk of negative publicity if our products fail, as well as the risk of litigation incident to our business;
• natural disasters and other calamities, political instability, hostilities or other disruptions;
• restrictive covenants in the indentures and agreements governing our current and future indebtedness;
• the possibility that we may decrease or suspend our quarterly dividend;
• significant severance plan obligations associated with our manufacturing operations in Korea; and
• the ability of certain of our stockholders to effectively determine or substantially influence the outcome of matters requiring stockholder approval.

Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect our operating results and financial condition are discussed in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the “Form 10-K”) and from time to time in our other reports filed with or furnished to the Securities and Exchange Commission (“SEC”). You should carefully consider the trends, risks and uncertainties described in this press release, the Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties continues or occurs, our business, financial condition or operating results could be materially and adversely affected, the trading prices of our securities could decline, and you could lose part or all of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement. We assume no obligation to review or update any forward-looking statements to reflect events or circumstances occurring after the date of this press release except as may be required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250210565899/en/

Jennifer Jue

Vice President, Investor Relations and Finance

480-786-7594

jennifer.jue@amkor.com

Source: Amkor Technology, Inc.

FAQ

What were AMKR's Q4 2024 earnings per share?

Amkor Technology reported earnings of $0.43 per diluted share for Q4 2024.

How much is AMKR's new quarterly dividend after the 5% increase in 2024?

After the 5% increase announced in November 2024, AMKR's quarterly dividend is $0.08269 per share.

What is Amkor's revenue guidance for Q1 2025?

Amkor's guidance for Q1 2025 projects net sales between $1.225 billion and $1.325 billion.

How much was AMKR's special dividend payment in December 2024?

AMKR paid a special dividend of $0.40546 per share, totaling approximately $100 million.

What was Amkor's full-year revenue for 2024?

Amkor reported full-year 2024 net sales of $6.32 billion.