NXP Semiconductors' (NXPI) revenue for the fiscal year 2024 was $12,614 million, reflecting a 5.0% year-on-year decline compared to $13,276 million in 2023. This decrease was attributed to weaker performance across several end markets, including Automotive, Industrial & IoT, and Communication Infrastructure. The gross profit margin for 2024 was 56.4%, slightly lower than the 56.9% recorded in 2023, indicating a less favorable cost structure relative to revenue.

Net income for 2024 was $2,542 million, down from $2,822 million in 2023, representing a 9.9% decline year-on-year. This was primarily driven by lower revenue and a slight increase in operating expenses as a percentage of revenue. Diluted earnings per share (EPS) also decreased to $9.73 in 2024 from $10.70 in 2023, reflecting the impact of reduced profitability.

Operating income for 2024 was $3,417 million, with an operating margin of 27.1%, compared to $3,661 million and a margin of 27.6% in 2023. The decline in operating income was influenced by higher restructuring costs and a slight increase in selling, general, and administrative expenses, which rose to 9.2% of revenue in 2024 from 8.7% in 2023.

Cash flow from operations for 2024 was $2,782 million, a significant decline from $3,513 million in 2023. This reduction was driven by increased working capital requirements, including higher inventories and receivables, as well as payments to secure long-term production capacity. Despite this, NXP maintained strong free cash flow generation, with non-GAAP free cash flow of $2,089 million for the year.

Capital returns to shareholders in 2024 totaled $2,411 million, comprising $1,038 million in cash dividends and $1,373 million in share repurchases. This reflects NXP's commitment to returning value to shareholders despite a challenging revenue environment.

Geographically, revenue performance was mixed. Revenue from China increased to $4,556 million in 2024 from $4,366 million in 2023, while revenue from the United States declined to $1,354 million from $1,437 million. Other regions, such as Germany and Singapore, also experienced declines, reflecting broader market challenges.

Amortization of acquisition-related intangible assets decreased significantly by 54.7% year-on-year, from $300 million in 2023 to $136 million in 2024. This reduction was due to certain acquisition-related intangibles becoming fully amortized, which positively impacted operating expenses.

For Q4 2024, revenue was $3.1 billion, down 9.1% year-on-year and 4.3% quarter-on-quarter. The gross margin for the quarter was 53.9%, reflecting higher restructuring costs and impairments. Operating cash flow for the quarter was $391 million, a sharp decline from $779 million in Q3 2024, driven by increased working capital requirements.

NXP's strategic investments in 2024 included equity contributions to new semiconductor manufacturing facilities in Germany and Singapore, totaling $220 million during the year. These investments are part of NXP's long-term strategy to secure production capacity and enhance its competitive positioning in the semiconductor market.