Datacom revenue grew over 120% while telecom revenue declined more than 20% for the year, due to the protracted inventory digestion across the telecom industry.
— Seamus Grady
03Detailed Report
FN
Company FN
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Fabrinet delivered a record-breaking fourth quarter for fiscal year 2024, with revenue of $753.3 million, up 15% year over year and 3% quarter over quarter, and non-GAAP diluted EPS of $2.41. For the full year, revenue reached a record $2.9 billion, up 9% vs. 2023, with non-GAAP EPS of $8.88, a 16% gain. The company highlighted robust datacom demand, led by 800G+ and AI-related applications, while telecom revenue declined due to ongoing inventory digestion. Automotive and non-optical segments posted solid sequential gains. Fabrinet signaled a continued datacom workforce and capacity pull-forward into fiscal 2025 and beyond, forecasting Q1 FY2025 revenue of $760–$780 million and EPS of $2.33–$2.40, with broader growth expected across major product lines. Management also announced a strategic building expansion (Building 10) at the Chonburi campus, targeting approximately $110 million of capex and ~2 million square feet of new capacity to support long-term demand. The combination of strong cash generation, deleveraging balance sheet, and multiple growth vectors (datacom, system telecom, automotive lasers) supports a constructive long-term investment thesis, albeit with near-term macro and customer-concentration risks to monitor.
Key Performance Indicators
Revenue
Increasing
753.26M
QoQ: 2.97% | YoY: 14.85%
Gross Profit
Increasing
92.45M
12.27% margin
QoQ: 1.66% | YoY: 12.34%
Operating Income
Increasing
73.31M
QoQ: 2.81% | YoY: 19.39%
Net Income
Increasing
81.07M
QoQ: 0.19% | YoY: 33.36%
EPS
Increasing
2.24
QoQ: 0.45% | YoY: 34.13%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability
- Q4 2024 revenue: $753.261 million, up 15% YoY and 3% QoQ; gross profit: $92.449 million; gross margin: 12.27% (rounded from 0.1227). Operating income: $73.309 million; operating margin: 9.73%. Net income: $81.066 million; net income margin: 10.76%. Non-GAAP net income: $88.0 million; non-GAAP EPS: $2.41; diluted EPS: $2.22.
- Full-year FY2024: Revenue $2.9 billion, up 9% YoY; non-GAAP EPS $8.88, up 16% YoY.
- Share repurchases: Q4 2024 ~21k shares repurchased at $170 on average ($3.5 million); FY2024 ~212k shares repurchased at $186 on average ($39 million). Free cash flow (FY2024): $368 million; operating cash flow: $413 million (up 94% YoY).
Balance sheet and liquidity
- Cash and short-term investments: $858.6 million (cash $409.97 million); net cash position: net debt ≈ -$405 million.
- Total assets: $2.338 billion; total liabilities: $0.593 billion; total stockholders’ equity: $1.7457 billion.
- Leverage: very low debt (total debt $4.99 million) and strong liquidity metrics; cash conversion and cash flow generation remain robust.
Guidance and outlook
- Q1 FY2025 revenue guidance: $760–$780 million; EPS guidance: $2.33–$2.40; expect sequential growth across major product areas; margin headwinds from merit increases, with anticipated offsetting efficiencies; FX headwinds noted due to Thai Baht strength.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
753.26M
14.85%
2.97%
Gross Profit
92.45M
12.34%
1.66%
Operating Income
73.31M
19.39%
2.81%
Net Income
81.07M
33.36%
0.19%
EPS
2.24
34.13%
0.45%
Key Financial Ratios
Gross Profit Margin
Weak
12.30%
Gross profit margin is below industry norms, profitability concerns
Operating Profit Margin
Fair
9.73%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Good
10.80%
Net profit margin is healthy and competitive within industry standards
Return on Assets
Fair
3.47%
Return on assets is acceptable but below top-tier companies
Return on Equity
Weak
4.64%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
3.61
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Growth
27.29x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
Premium
5.07x
Trading at premium to book value, reflects strong intangibles or growth
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