Vishay Intertechnology Reports Fiscal Fourth Quarter and Full Year 2024 Results

Rhea-AI Summary

Vishay Intertechnology (NYSE: VSH) reported its Q4 2024 financial results with revenues of $714.7 million and a GAAP loss per share of ($0.49), with adjusted EPS of $0.00. The company showed positive signs with a book-to-bill ratio of 1.01 (0.99 for semiconductors, 1.03 for passive components) and a backlog of 4.4 months.

The company returned $26.2 million to stockholders in Q4 2024 and $105.1 million for the full year. Capital expenditure for FY 2024 was $320.1 million. Management provided Q1 2025 guidance with expected revenues of $710 million ±$20 million and a gross profit margin of 19.0% ±50 basis points, including a negative impact of 175-200 basis points related to Newport.

Positive

• First positive book-to-bill ratio in nine quarters at 1.01
• Strong order intake for smart grid infrastructure projects
• Initial shipments for A.I. servers commenced
• Returned $105.1 million to stockholders in 2024

Negative

• Q4 2024 GAAP loss per share of ($0.49)
• Q4 results slightly below Q3 performance
• Expected gross profit margin decline of 175-200 basis points due to Newport impact

Insights

Financial Analyst

Vishay's Q4 2024 performance reveals a complex transition period marked by both challenges and emerging opportunities. The book-to-bill ratio of 1.01 breaking a two-year negative streak is particularly significant, as it typically precedes revenue growth by 2-3 quarters in the semiconductor industry. The 4.4-month backlog provides a reasonable cushion, though it's below the historical average of 5-6 months.

The company's substantial FY2024 capital expenditure of $320.1 million demonstrates strong commitment to capacity expansion and technological advancement, particularly in growth segments like e-mobility and AI infrastructure. This investment level, representing approximately 11% of annual revenue, is notably above the industry average of 7-8%, potentially positioning Vishay advantageously for the anticipated market recovery.

However, near-term headwinds persist. The projected Q1 2025 gross margin of 19.0% ±50 bps, impacted by 175-200 bps from Newport, suggests ongoing operational challenges. The company's balanced approach to shareholder returns, with $105.1 million distributed in 2024, maintains financial flexibility while supporting the stock during this transitional period.

The divergence in book-to-bill ratios between semiconductors (0.99) and passive components (1.03) indicates uneven recovery across product segments, with passive components showing stronger momentum. This aligns with typical semiconductor cycle patterns where passive components often lead the recovery phase.

MALVERN, Pa., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal fourth quarter and year ended December 31, 2024.

Highlights

• 4Q 2024 revenues of $714.7 million
• 4Q 2024 GAAP loss per share of ($0.49); adjusted EPS of $0.00
• 4Q 2024 book-to-bill of 1.01, with book-to-bill of 0.99 for semiconductors and 1.03 for passive components
• Backlog at quarter end was 4.4 months
• Returned a total of $26.2 million to stockholders in Q4 2024; $105.1 million for the year
• FY 2024 capex of $320.1 million

“Our fourth quarter results came in as expected, slightly below the third quarter. Nevertheless, we saw many promising indicators including a positive book-to-bill for the first time in nine quarters, strong order intake for smart grid infrastructure projects, and initial shipments for A.I. servers,” said Joel Smejkal, President and CEO.  “For 2025, we are well positioned to support a market upturn as capacity, print position, and customer engagements have been key priorities under Vishay 3.0. All of our strategic levers are in play as we continue to execute our five-year plan to position Vishay to take advantage of the megatrends of e-mobility and sustainability.”

1Q 2025 Outlook
For the first quarter of 2025, management expects revenues in the range of $710 million +/- $20 million and a gross profit margin in the range of 19.0% +/- 50 basis points, including the negative impact of approximately of 175-200 basis points related to Newport.

Conference Call
A conference call to discuss Vishay’s fourth quarter financial results is scheduled for Wednesday, February 5, 2025 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI8ebcbdf5aaea4c50833bdc15cc86f02a. Upon registering, you will be emailed a dial-in number, and unique PIN.
A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.

About Vishay
Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.

This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including adjusted net earnings; adjusted earnings per share; adjusted operating margin; free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); adjusted EBITDA; and adjusted EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as adjusted net earnings, adjusted earnings per share, adjusted gross margin, adjusted operating margin, free cash, EBITDA, adjusted EBITDA, and adjusted EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. Reconciling items to arrive at adjusted net earnings represent significant charges or credits that are important to understanding the Company's intrinsic operations. Reconciling items to calculate adjusted gross margin, adjusted operating margin and adjusted EBITDA represent those same items used in computing adjusted net earnings, as relevant. Furthermore, the presented calculation of adjusted EBITDA is substantially similar to, but not identical to, a measure used in the calculation of financial ratios required for covenant compliance under Vishay's revolving credit facility. These reconciling items are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.

Statements contained herein that relate to the Company's future performance, including forecasted revenues and margins, capital investment, capacity expansion, market trends, and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as "intend," "suggest," "guide," "will," "expect," or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand (including due to political, economic, and health instability and military conflicts and hostilities); delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; that the Newport wafer fab will not be integrated successfully into the Company’s overall business; that the expected benefits of the acquisition may not be realized; that the fab’s standards, procedures and controls will not be brought into conformance within the Company’s operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management’s attention from the management of our current business; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The DNA of tech™ is a trademark of Vishay Intertechnology.

Contact:
Vishay Intertechnology, Inc.
Peter Henrici
Executive Vice President, Corporate Development
+1-610-644-1300

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(In thousands, except per share amounts)
	Years ended
	December 31, 2024				December 31, 2023
	(unaudited)
Net revenues	$	2,937,587			$	3,402,045
Costs of products sold		2,311,295				2,427,552
Gross profit		626,292				974,493
Gross margin		21.3%				28.6%
Selling, general, and administrative expenses		513,564				488,349
Restructuring and severance costs		40,614				-
Impairment of goodwill		66,487				-
Operating income		5,627				486,144
Operating margin		0.2%				14.3%
Other income (expense):
Interest expense		(27,480	)			(25,131	)
Loss on early extinguishment of debt		-				(18,874	)
Other		19,464				25,263
Total other income (expense) - net		(8,016	)			(18,742	)
Income (loss) before taxes		(2,389	)			467,402
Income tax expense		27,366				141,889
Net earnings (loss)		(29,755	)			325,513
Less: net earnings attributable to noncontrolling interests		1,395				1,693
Net earnings (loss) attributable to Vishay stockholders	$	(31,150	)		$	323,820
Basic earnings (loss) per share attributable to Vishay stockholders	$	(0.23	)		$	2.32
Diluted earnings (loss) per share attributable to Vishay stockholders	$	(0.23	)		$	2.31
Weighted average shares outstanding - basic		136,964				139,447
Weighted average shares outstanding - diluted		136,964				140,246
Cash dividends per share	$	0.40			$	0.40

VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended
	December 31, 2024				September 28, 2024				December 31, 2023
Net revenues	$	714,716			$	735,353			$	785,236
Costs of products sold		572,584				584,470				584,572
Gross profit		142,132				150,883				200,664
Gross margin		19.9%				20.5%				25.6%
Selling, general, and administrative expenses		132,330				128,545				122,834
Restructuring and severance costs		-				40,614				-
Impairment of goodwill		66,487				-				-
Operating income (loss)		(56,685	)			(18,276	)			77,830
Operating margin		-7.9%				-2.5%				9.9%
Other income (expense):
Interest expense		(7,731	)			(6,596	)			(6,454	)
Other		5,563				803				9,268
Total other income (expense) - net		(2,168	)			(5,793	)			2,814
Income (loss) before taxes		(58,853	)			(24,069	)			80,644
Income tax expense (benefit)		7,232				(5,076	)			28,690
Net earnings (loss)		(66,085	)			(18,993	)			51,954
Less: net earnings attributable to noncontrolling interests		223				306				482
Net earnings (loss) attributable to Vishay stockholders	$	(66,308	)		$	(19,299	)		$	51,472
Basic earnings (loss) per share attributable to Vishay stockholders	$	(0.49	)		$	(0.14	)		$	0.37
Diluted earnings (loss) per share attributable to Vishay stockholders	$	(0.49	)		$	(0.14	)		$	0.37
Weighted average shares outstanding - basic		136,050				136,793				138,318
Weighted average shares outstanding - diluted		136,050				136,793				139,266
Cash dividends per share	$	0.10			$	0.10			$	0.10

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(In thousands)
	December 31, 2024				December 31, 2023
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	590,286			$	972,719
Short-term investments		16,130				35,808
Accounts receivable, net		401,901				426,674
Inventories:
Finished goods		175,176				167,083
Work in process		296,393				267,339
Raw materials		217,812				213,098
Total inventories		689,381				647,520
Prepaid expenses and other current assets		217,809				214,443
Total current assets		1,915,507				2,297,164
Property and equipment, at cost:
Land		84,124				77,006
Buildings and improvements		766,058				719,387
Machinery and equipment		3,259,213				3,053,868
Construction in progress		367,564				290,593
Allowance for depreciation		(2,931,221	)			(2,846,208	)
		1,545,738				1,294,646
Right of use assets		117,953				126,829
Deferred income taxes		159,769				137,394
Goodwill		179,005				201,416
Other intangible assets, net		87,223				72,333
Other assets		105,501				110,141
Total assets	$	4,110,696			$	4,239,923

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets (continued)
(In thousands)
	December 31, 2024				December 31, 2023
	(Unaudited)
Liabilities and equity
Current liabilities:
Trade accounts payable	$	216,313			$	191,002
Payroll and related expenses		137,101				161,940
Lease liabilities		25,901				26,485
Other accrued expenses		264,471				239,350
Income taxes		64,562				73,098
Total current liabilities		708,348				691,875
Long-term debt less current portion		905,019				818,188
U.S. transition tax payable		-				47,027
Deferred income taxes		96,363				95,776
Long-term lease liabilities		94,218				102,830
Other liabilities		104,086				87,918
Accrued pension and other postretirement costs		173,700				195,503
Total liabilities		2,081,734				2,039,117
Equity:
Vishay stockholders' equity
Common stock		13,361				13,319
Class B convertible common stock		1,210				1,210
Capital in excess of par value		1,306,245				1,291,499
Retained earnings		955,500				1,041,372
Treasury stock (at cost)		(212,062	)			(161,656	)
Accumulated other comprehensive income (loss)		(35,292	)			10,337
Total Vishay stockholders' equity		2,028,962				2,196,081
Noncontrolling interests		-				4,725
Total equity		2,028,962				2,200,806
Total liabilities and equity	$	4,110,696			$	4,239,923

VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Statements of Cash Flows
(In thousands)
	Years ended
	December 31, 2024				December 31, 2023
	(unaudited)
Operating activities
Net earnings (loss)	$	(29,755	)		$	325,513
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:
Depreciation and amortization		210,645				184,373
Gain on disposal of property and equipment		(1,969	)			(554	)
Inventory write-offs for obsolescence		37,245				37,426
Impairment of goodwill		66,487				-
Pensions and other postretirement benefits, net of contributions		(6,036	)			(9,559	)
Stock compensation expense		20,921				16,532
Loss on early extinguishment of debt		-				18,874
Deferred income taxes		(23,514	)			36,783
Other		20,416				9,442
Change in U.S. transition tax liability		(37,622	)			(27,670	)
Change in repatriation tax liability		(15,000	)			(63,600	)
Changes in operating assets and liabilities		(68,116	)			(161,857	)
Net cash provided by operating activities		173,702				365,703
Investing activities
Capital expenditures		(320,079	)			(329,410	)
Proceeds from sale of property and equipment		3,015				1,156
Purchase of and deposits for businesses, net of cash acquired		(216,024	)			(13,753	)
Purchase of short-term investments		(145,327	)			(117,523	)
Maturity of short-term investments		164,983				387,898
Other investing activities		970				(1,219	)
Net cash used in investing activities		(512,462	)			(72,851	)
Financing activities
Proceeds from long-term borrowings		-				750,000
Repurchase of convertible senior notes due 2025		(52,960	)			(386,745	)
Net proceeds (payments) on revolving credit facility		136,000				(42,000	)
Debt issuance and amendment costs		(1,062	)			(26,823	)
Cash paid for capped call		-				(94,200	)
Dividends paid to common stockholders		(49,833	)			(50,787	)
Dividends paid to Class B common stockholders		(4,839	)			(4,839	)
Repurchase of common stock held in treasury		(50,406	)			(78,684	)
Distributions to noncontrolling interests		(2,500	)			(867	)
Acquisition of noncontrolling interests		(5,500	)			-
Cash withholding taxes paid when shares withheld for vested equity awards		(4,303	)			(3,994	)
Net cash provided by (used in) financing activities		(35,403	)			61,061
Effect of exchange rate changes on cash and cash equivalents		(8,270	)			7,981
Net increase (decrease) in cash and cash equivalents		(382,433	)			361,894
Cash and cash equivalents at beginning of period		972,719				610,825
Cash and cash equivalents at end of period	$	590,286			$	972,719

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Adjusted Earnings Per Share
(Unaudited - In thousands, except per share amounts)
	Fiscal quarters ended											Years ended
	December 31, 2024				September 28, 2024				December 31, 2023			December 31, 2024				December 31, 2023
GAAP net earnings (loss) attributable to Vishay stockholders	$	(66,308	)		$	(19,299	)		$	51,472		$	(31,150	)		$	323,820
Reconciling items affecting operating income:
Impairment of goodwill	$	66,487			$	-			$	-		$	66,487			$	-
Restructuring and severance costs		-				40,614				-			40,614				-
Reconciling items affecting other income (expense):
Loss on early extinguishment of debt	$	-			$	-			$	-		$	-			$	18,874
Reconciling items affecting tax expense (benefit):
Tax effects of pre-tax items above	$	-			$	(10,299	)		$	-		$	(10,299	)		$	(498	)
Adjusted net earnings	$	179			$	11,016			$	51,472		$	65,652			$	342,196
Adjusted weighted average diluted shares outstanding		136,883				137,558				139,266			137,741				140,246
Adjusted earnings per diluted share	$	0.00			$	0.08			$	0.37		$	0.48			$	2.44

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of Free Cash
(Unaudited - In thousands)
	Fiscal quarters ended												Years ended
	December 31, 2024				September 28, 2024				December 31, 2023				December 31, 2024				December 31, 2023
Net cash provided by operating activities	$	67,656			$	50,565				6,268			$	173,702			$	365,703
Proceeds from sale of property and equipment		1,618				132				122				3,015				1,156
Less: Capital expenditures		(144,904	)			(59,527	)			(145,331	)			(320,079	)			(329,410	)
Free cash	$	(75,630	)		$	(8,830	)		$	(138,941	)		$	(143,362	)		$	37,449

VISHAY INTERTECHNOLOGY, INC.
Reconciliation of EBITDA and Adjusted EBITDA
(Unaudited - In thousands)
	Fiscal quarters ended												Years ended
	December 31, 2024				September 28, 2024				December 31, 2023				December 31, 2024				December 31, 2023
GAAP net earnings (loss) attributable to Vishay stockholders	$	(66,308	)		$	(19,299	)		$	51,472			$	(31,150	)		$	323,820
Net earnings attributable to noncontrolling interests		223				306				482				1,395				1,693
Net earnings (loss)	$	(66,085	)		$	(18,993	)		$	51,954			$	(29,755	)		$	325,513
Interest expense	$	7,731			$	6,596			$	6,454			$	27,480			$	25,131
Interest income		(4,533	)			(5,230	)			(9,934	)			(25,479	)			(31,353	)
Income taxes		7,232				(5,076	)			28,690				27,366				141,889
Depreciation and amortization		55,373				53,595				50,463				210,645				184,373
EBITDA	$	(282	)		$	30,892			$	127,627			$	210,257			$	645,553
Reconciling items
Impairment of goodwill	$	66,487			$	-			$	-			$	66,487			$	-
Restructuring and severance costs		-				40,614				-				40,614				-
Loss on early extinguishment of debt		-				-				-				-				18,874
Adjusted EBITDA	$	66,205			$	71,506			$	127,627			$	317,358			$	664,427
Adjusted EBITDA margin**		9.3%				9.7%				16.3%				10.8%				19.5%
** Adjusted EBITDA as a percentage of net revenues

FAQ

What were Vishay's (VSH) Q4 2024 revenue and EPS results?

Vishay reported Q4 2024 revenues of $714.7 million with a GAAP loss per share of ($0.49) and adjusted EPS of $0.00.

What is Vishay's (VSH) Q1 2025 revenue guidance?

Vishay expects Q1 2025 revenues in the range of $710 million ±$20 million with a gross profit margin of 19.0% ±50 basis points.

What was VSH's book-to-bill ratio in Q4 2024?

VSH reported a book-to-bill ratio of 1.01, with 0.99 for semiconductors and 1.03 for passive components.

How much capital did Vishay (VSH) return to shareholders in 2024?

Vishay returned $105.1 million to stockholders in 2024, including $26.2 million in Q4 2024.

What was Vishay's (VSH) capital expenditure for FY 2024?

Vishay's capital expenditure for FY 2024 was $320.1 million.