ADI puts a brave face on 2024 drop, looks to 2025 recovery.

Analog Devices has seen revenue down by a quarter in 2024 but expects to see recovery in 2025.

The company saw revenues of $9.4bn, down 23% on the $12.3bn posted in 2023, although this was above expectations. Net income was down 51% at $1.60bn from $3.33bn.

 “ADI’s revenue, profitability, and earnings per share all finished above our guided midpoint, underscoring continued business momentum and solid execution,” said Vincent Roche, CEO and Chair of Analog Devices. “While unprecedented customer inventory headwinds drove a historic revenue decline during fiscal 2024, we maintained operating margins north of 40%, which is a testament to our business model’s resilience.”

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“We also continued to make strategic, long-term investments across engineering, manufacturing, and the end-to-end customer experience. As such, we enter 2025 as an even stronger enterprise, giving me the utmost confidence in our ability to drive increased value for customers and shareholders over the long term,” he said. This includes the innovation and development centre and fab in Limerick Oreland.

“After a brief decline in overall bookings during our third quarter, orders picked up steadily throughout the fourth quarter, particularly in the Automotive end market. While macro uncertainty continues to limit the pace of our recovery, we remain cautiously optimistic for a strong growth year in fiscal 2025,” said Richard Puccio, CFO.

For the first quarter of fiscal 2025, ADI is forecasting revenue of $2.35 billion, +/- $100 million, down from $2.44bn in Q4 2024.