Hon Hai Technology Group (Foxconn) Announces FY2024 & 4Q24 Financial Results
• EPS NT$11.01, a 17-year high, core business profitability improving
• 2025 outlook is for strong growth; 1Q25 AI server revenue to more than double
• Seeing sustained demand for AI infrastructure and strong capex of major CSPs
• To complete contract signing in 1-2 months for collaboration with Japan automaker---14 March 2025, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317)
today announced its full year and fourth quarter 2024 financial results.
Full year 2024 net profit reached NT$152.7 billion, resulting in an earnings per share of
NT$11.01, a 17-year high. At the same time, the Group announced that it will distribute a
cash dividend of NT$5.80 per share, a record level since its listing in 1991. Despite
significant changes in global tariff policies, geopolitical risks and monetary policies, the
outlook for 2025 is for strong growth. The company also shared key developments around
its three major smart platforms, as well as on AI and EV in 2025.
For the full year 2024, revenue totaled NT$6.86 trillion, up 11.3% on-year. Gross profit
reached NT$428.9 billion, up 10.6%; operating net profit, at NT$200.6 billion, was up
20.5%; while net profit rose 7.5% to NT$152.7 billion for the same time period. Gross profit
margin, operating profit margin and net profit margin stood at 6.25%, 2.92% and 2.23%
respectively, compared with 6.30%, 2.70% and 2.31% in the previous year. With profitability
of the core business improving significantly, EPS for the year, at NT$11.01, was up by
NT$0.76 on-year.
In the October-December quarter, revenue reached NT$2.13 trillion, rising 15% on-year;
gross profit reached NT$131 billion, up 15.7% from the same three months a year ago;
operating net profit was NT$64.5 billion, showing an on-year gain of 31.8%; however net
profit, at NT$46.3 billion, fell 12.8% for the same time period. Gross profit margin, operating
profit margin and net profit margin were 6.15%, 3.03% and 2.17% respectively, compared
to 6.12%, 2.64% and 2.87% in the same period a year ago, showing an increase in two of
the three margins that indicated an improvement in profitability of the core business. EPS
for the final three months of 2024 was NT$3.34, down NT$0.49 from the same period a
year ago.
Chairman of Hon Hai Technology Group (Foxconn), Young Liu, said fourth quarter revenue
grew strongly both on-quarter and on-year. The record high NT$6.86 trillion in last year’sannual revenue, came as three of four primary product segments – cloud and networking;
computing; components and others – all achieved strong growth. The actual performance
exceeded expectations.
Based on the Group's goal of an average payout ratio of no less than 40%, Chairman Liu
announced a cash dividend of NT$5.80 per share to be distributed for this year, a significant
increase from last year's NT$5.40 per share. The payout ratio reached 52.68%, a new high
since the company was listed in 1991, and exceeding 50% for the sixth year in a row.
Looking ahead for 2025, Chairman Liu said the full-year operating outlook will be for strong
growth, and that first quarter performance will also turn in strong growth compared to the
same period last year. The company is now positioned as a technology manufacturing
platform service provider. The three major platforms – Smart Manufacturing, Smart EV,
Smart City – are the important foundation for developing various technologies and
businesses. These platforms are based on key components, modules, systems, software
and other fundamental capabilities we have soundly established. In the future, Foxconn
will introduce more generative AI to make them even more powerful.
Foxconn will work with global Tier-1 partners to jointly develop and create generative AI
solutions or develop large language models in-house to introduce into its three major
intelligent platforms. By doing this, it will improve overall operational efficiency, and also
enhance competitive advantage. The Group is using AI to produce AI; in Japan we have
built a fully automated mobile phone assembly line. This is a good example of our move
towards AI.
In the face of market concerns regarding the impact of geopolitics and tariffs on the Group's
operations, Chairman Liu said overall ICT industry demand is generally stable this year. In
response to changes, we will maintain close contact with our customers and due to our
comprehensive global layout make timely adjustments. Through vertical integration, a
diversified footprint and close cooperation with customers, the Group will maintain its
market leading position.
Chairman Liu predicted that 2025 will be the first year of AI. Global demand is being
sustained for AI computing infrastructure, and the capex of major CSPs will maintain strong
growth this year. Looking at the first quarter, Foxconn’s AI server revenue is expected to
grow more than 100% both quarter-on-quarter and year-to-year. As the GB200 enters
mass production, we believe AI server revenue will improve quarter by quarter.
Looking at the full year, AI server revenue will reach the trillion-dollar scale, in local currency
terms, accounting for more than half of the Group’s total server share. Foxconn has beenan important co-development partner in new products with major customers, ensuring that
we can participate in next generation upon next generation of product development.
The company also believes that the technical methods used by DeepSeek will accelerate
the popularization of AI servers for inference, thereby driving an increase in overall
computing power demand. For large enterprises and CSPs, high-end AI servers and
complete network and storage architectures are still indispensable, so demand for high-
end AI servers will continue to grow. In the long run, as the development of edge AI
gradually matures, there is likely to be more demand for upgrading personal devices.
AI server training takes a long time. During this period, if there is a failure in the AI server,
it will have a great impact on the training time or even the results. Foxconn has always
been in a leading position in terms of quality stability. A 40% market share is our most
conservative target. We are confident that we can continue to strive for a higher market
share.
Regarding collaboration with Japanese automakers, Chairman Liu said he anticipates
“contract signing to be completed in one to two months’ time.” During the second half of
the year, the MODEL B and the North American variant of the MODEL C are expected to
enter mass production, while the manufacturing factory for the electric bus is scheduled to
complete certification in the third quarter, expanding shipment capacity.
2025/03/14