NXP Semiconductor Full-Year Report 2024

NXP Semiconductors reported financial results for the fourth quarter and full-year, which ended December 31, 2023.

“NXP delivered full-year 2023 revenue of $13.28 billion, an increase of 1 percent year-on-year. In the fourth quarter, revenue was $3.42 billion, an increase of 3 percent year-on-year, above the mid-point of our guidance range. In review, NXP delivered solid results throughout 2023, reflecting strong execution, consistent gross margin, and healthy free cash flow generation despite a challenging semiconductor market environment. We are navigating a soft landing by managing what is in our control, especially limiting over shipment of products to customers,” said Kurt Sievers, NXP President and Chief Executive Officer.

Highlights

• Fourth quarter revenue was $3.42 billion, up 3 percent year-on-year. Full-year revenue was $13.28 billion, up 1 percent year-on-year;
• Fourth quarter GAAP gross margin was 56.6 percent, GAAP operating margin was 26.5 percent and GAAP diluted Net Income per Share was $2.68. Full-year GAAP gross margin was 56.9 percent, GAAP operating margin was 27.6 percent and GAAP diluted Net Income per Share was $10.70;
• Fourth quarter non-GAAP gross margin was 58.7 percent, non-GAAP operating margin was 35.6 percent, and non-GAAP diluted Net Income per Share was $3.71. Full-year non-GAAP gross margin was 58.5 percent, non-GAAP operating margin was 35.1 percent and non-GAAP diluted Net Income per Share was $14.01;
• Fourth quarter cash flow from operations was $1,137 million, with net capex investments of $175 million, resulting in non-GAAP free cash flow of $962 million. Full-year cash flow from operations was $3,513 million, with net capex investments of $826 million, resulting in non-GAAP free cash flow of $2,687 million;
• During the fourth quarter of 2023, NXP continued to execute its capital return policy with the payment of $261 million in cash dividends, and the repurchase of $434 million of its common shares. The total capital return of $695 million in the quarter represented 72 percent of fourth quarter non-GAAP free cash flow. On a trailing twelve month basis, capital return to shareholders represented $2.06 billion or 77 percent of non-GAAP free cash flow. The interim dividend for the fourth quarter 2023 was paid in cash on January 5, 2024 to shareholders of record as of December 13, 2023. Subsequent to the end of the fourth quarter, between January 1, 2024 and February 2, 2024, NXP executed via a 10b5-1 program additional share repurchases totaling $116 million;