Applied Materials Inc (0R1A.L) Q4 2024 Earnings Report

Applied Materials reported a solid Q4 2024 performance with revenue of $7.045 billion and gross profit of $3.335 billion, delivering a gross margin of 47.34%. Operating income reached $2.046 billion, corresponding to an operating margin of 29.04%, and EBITDA of $2.071 billion. Net income totaled $1.731 billion, yielding a net margin of 24.57% and diluted earnings per share (EPS) of $2.09. On a year-over-year basis, revenue and gross profit advanced by approximately 5.0% and 4.1% respectively, while net income declined by about 14.3% and EPS by about 13.2%, underscoring a mix shift and higher non-operating costs relative to the prior year. Management continues to emphasize leading technology platforms and efficiency gains as catalysts for continued profitability in a cyclical semiconductor equipment market.

Cash generation remained robust in Q4, with cash flow from operations of $2.575 billion and free cash flow (FCF) of $2.168 billion. Capital expenditures were modest at $407 million, while the company returned a substantial amount of capital to shareholders, including $1.442 billion in share repurchases and $329 million in dividends, driving financing cash outflows. Net debt remained negative at $1.417 billion, supported by a solid liquidity position: cash and cash equivalents of about $8.022 billion and total cash plus short-term investments of $9.471 billion. The balance sheet reflects a strong liquidity cushion and a conservative leverage profile that should support ongoing R&D and capex investments while funding shareholder-friendly actions.