Foxconn Sees Notable Growth in FY2024 and Q4 Financial Performance

Foxconn’s Stellar Financial Performance

Today, Hon Hai Technology Group—better known as Foxconn—launched its financial results for the full year and fourth quarter of 2024, and let’s just say, the numbers are impressive. The company reported a net profit of NT$152.7 billion, which translates to an earnings per share (EPS) of NT$11.01. This marks a remarkable 17-year high! To sweeten the deal, Foxconn also announced a cash dividend of NT$5.80 per share, a record since it went public in 1991. With all the global tariff shifts, geopolitical tensions, and monetary policy changes swirling around, Foxconn’s outlook for 2025 remains bright, hinting at strong growth ahead.

Revenue Growth and Profit Margins

For the entirety of 2024, Foxconn racked up revenue of NT$6.86 trillion, reflecting an impressive year-on-year growth of 11.3%. Gross profit hit NT$428.9 billion, up 10.6%, while operating net profit surged by 20.5% to NT$200.6 billion. Even the net profit saw a 7.5% bump, landing at NT$152.7 billion. What’s particularly interesting is that the gross profit margin, operating profit margin, and net profit margin stood at 6.25%, 2.92%, and 2.23%, respectively—slightly down from last year but still showcasing a solid performance.

In the final quarter alone, revenue soared to NT$2.13 trillion, a 15% increase compared to the same period last year. Gross profit for this quarter reached NT$131 billion, marking a 15.7% uptick. Operating net profit jumped a whopping 31.8% to NT$64.5 billion. However, net profit did take a hit, falling 12.8% to NT$46.3 billion. Despite this, the overall profitability of Foxconn’s core business appears to be on a solid upward trajectory.

A Record Dividend and Future Outlook

Chairman Young Liu shared some encouraging insights during the announcement. He highlighted that the fourth quarter’s revenue growth was robust, with three out of four main product segments—cloud and networking, computing, and components—experiencing significant growth. Liu also revealed that the cash dividend of NT$5.80 per share represents a substantial increase from last year’s NT$5.40, pushing the payout ratio to an impressive 52.68%. This is the sixth consecutive year the ratio has exceeded 50%, a clear testament to Foxconn’s strong financial health.

Looking ahead, Liu is optimistic about 2025, predicting strong growth across the board. Foxconn is positioning itself as a leading technology manufacturing platform service provider, with three major platforms—Smart Manufacturing, Smart EV, and Smart City—serving as the backbone for future innovations. The company plans to harness more generative AI to amplify its capabilities, which is an exciting prospect for tech enthusiasts.

Embracing AI and Strategic Partnerships

Foxconn is not just resting on its laurels; it’s actively collaborating with global Tier-1 partners to develop generative AI solutions. The company is also looking to create in-house large language models to enhance its three major platforms. This move is expected to boost overall operational efficiency and sharpen its competitive edge in a rapidly evolving market. For instance, Foxconn has already established a fully automated mobile phone assembly line in Japan, showcasing its commitment to integrating AI into its operations.

In light of market uncertainties stemming from geopolitical issues and tariff changes, Liu reassured stakeholders that demand in the ICT industry remains stable. Foxconn plans to maintain close ties with customers and adapt swiftly to market changes. Through vertical integration and a diverse global footprint, the company aims to uphold its market leadership.

The Future of AI and Server Demand

Liu also made a bold prediction: 2025 will be the year of AI. With sustained global demand for AI computing infrastructure, Foxconn expects its AI server revenue to double—yes, double—both quarter-on-quarter and year-on-year in the first quarter alone. With the GB200 entering mass production, the company is confident that AI server revenue will continue to climb steadily.

As Foxconn gears up for the future, it’s clear that AI server training is a lengthy process. Any hiccup in the server can significantly impact training times and outcomes. Fortunately, Foxconn prides itself on quality stability, aiming for a conservative target of 40% market share, with ambitions to push even higher.

Collaboration with Automakers

On the automotive front, Liu expressed optimism about upcoming collaborations with Japanese automakers, anticipating contract signings in the next month or two. The second half of the year is set to be particularly exciting, as Foxconn prepares for mass production of the MODEL B and the North American variant of the MODEL C. Plus, the certification of its electric bus manufacturing facility is on track for completion in the third quarter, ramping up shipment capacity.

With a strong financial foundation and an eye on innovative technologies, Foxconn is not just keeping pace but leading the charge into a future where AI and smart technologies redefine the landscape. Are you ready to see what they’ll roll out next?

Background Information

---

About Foxconn:

Foxconn, officially known as Hon Hai Precision Industry Co., Ltd., is a global technology manufacturing company. With a rich history dating back to 1974, Foxconn has played a pivotal role in revolutionizing the electronics industry. Foxconn is mainly known for its role as a important contract electronics manufacturer. The company specializes in assembling a wide variety of electronic products, including smartphones, tablets, computers, televisions, gaming consoles, and other consumer electronics on behalf of some of the world's leading technology brands

  

Latest Articles about Foxconn