NXP Semiconductors N.V. (NXPI) Bundle
A Brief History of NXP Semiconductors
NXP Semiconductors N.V. has undergone significant evolution since its inception. As of 2024, the company continues to be a leading player in the semiconductor industry, focusing on automotive, industrial, and Internet of Things (IoT) applications.
Financial Performance Overview
For the nine months ended September 29, 2024, NXP reported revenues of $9,503 million, a decrease of 3.6% from $9,854 million in the same period of 2023. The revenue breakdown by end market is as follows:
| End Market | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) | % Change |
|---|---|---|---|
| Automotive | 1,829 | 1,891 | (3.3)% |
| Industrial & IoT | 563 | 607 | (7.2)% |
| Mobile | 407 | 377 | 8.0% |
| Communication Infrastructure & Other | 451 | 559 | (19.3)% |
Gross profit for the nine months ended September 29, 2024, was $5,441 million, representing a gross margin of 57.3%, compared to $5,616 million and 57.0% for the same period in 2023. Operating income for the same period was $2,742 million, yielding an operating margin of 28.9%.
Operating Expenses
NXP's operating expenses for the nine months ended September 29, 2024, totaled $2,684 million, or 28.2% of revenue, down from $2,852 million, or 28.9% of revenue in 2023. Research and development (R&D) expenses were $1,735 million, accounting for 18.3% of revenue, a slight increase from 17.9% in the prior year.
Cash Flow and Capital Expenditures
Cash flows from operating activities for the first nine months of 2024 were $2,391 million, compared to $2,376 million in 2023. Capital expenditures amounted to $597 million, down from $652 million in the previous year. NXP returned $1,698 million to shareholders through dividends and share repurchases during this period.
Debt and Liquidity
As of September 29, 2024, NXP's total debt stood at $10,182 million, a decrease of $993 million from $11,175 million at the end of 2023. The net debt position was $7,034 million, compared to $6,904 million at year-end 2023. The company had a cash and short-term deposits balance of $3,148 million at the same date.
Recent Developments
In September 2024, NXP announced its investment in VisionPower Semiconductor Manufacturing Company Pte. Ltd. (VSMC), committing $1,600 million to support a new semiconductor wafer manufacturing facility in Singapore, with $140 million already invested in Q3 2024.
Stockholder Equity
As of September 29, 2024, the total stockholders' equity was $9,406 million, reflecting a change in accumulated deficit from ($2,793 million) at the start of the year to ($1,582 million) as of the latest report. The outstanding number of shares was 254,002 thousand.
The company has maintained a strong focus on returning value to shareholders while investing in growth opportunities within the semiconductor sector, particularly in automotive and IoT technologies.
A Who Owns NXP Semiconductors N.V. (NXPI)
Major Shareholders
As of 2024, the ownership of NXP Semiconductors N.V. is divided among various institutional and individual investors. The company's largest shareholders include:
| Shareholder | Ownership Percentage (%) | Shares Owned (millions) |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | 21.2 |
| BlackRock, Inc. | 8.2% | 20.5 |
| State Street Corporation | 4.9% | 12.2 |
| Capital Research Global Investors | 4.3% | 10.7 |
| FMR LLC (Fidelity) | 4.1% | 10.2 |
| Invesco Ltd. | 3.6% | 9.0 |
| Other Institutional Investors | 30.0% | 75.0 |
| Individual Investors | 26.4% | 66.0 |
Institutional Ownership
Institutional investors hold a significant portion of NXP Semiconductors' stock, indicating strong confidence in its long-term growth potential. As of the latest report, institutional ownership stands at approximately 70.5% of total shares outstanding.
Executive Ownership
Key executives and board members also hold shares in NXP Semiconductors. Their combined ownership is approximately 1.5% of the total shares, reflecting their alignment with shareholder interests.
| Executive Name | Position | Shares Owned (thousands) |
|---|---|---|
| Kurt Sievers | President & CEO | 150 |
| Peter Kelly | Chief Financial Officer | 100 |
| Other Executives | Various | 250 |
Shareholder Composition
The composition of shareholders in NXP Semiconductors N.V. illustrates a diverse range of investors, including both institutional and retail investors. The breakdown is as follows:
| Type of Shareholder | Percentage of Total Shares (%) |
|---|---|
| Institutional Investors | 70.5% |
| Retail Investors | 26.4% |
| Insider Ownership | 1.5% |
| Other | 1.6% |
Recent Changes in Ownership
In the past year, there have been notable changes in the ownership structure of NXP Semiconductors N.V. The company has seen increased investment from institutional investors, with Vanguard and BlackRock both raising their stakes.
Market Capitalization and Stock Performance
As of September 29, 2024, NXP Semiconductors N.V. has a market capitalization of approximately $35 billion. The stock has experienced fluctuating performance, with a year-to-date return of around -5.4% as of the last reporting period.
| Metric | Value |
|---|---|
| Market Capitalization ($ billion) | 35 |
| Year-to-Date Stock Performance (%) | -5.4% |
| Dividends Paid ($ per share) | 1.014 |
| Shares Outstanding (millions) | 250 |
Conclusion on Ownership Structure
The ownership structure of NXP Semiconductors N.V. reflects a healthy mix of institutional and retail investors, with significant insider ownership demonstrating confidence in the company's future. The ongoing support from major institutional investors like Vanguard and BlackRock highlights the potential for continued growth in the semiconductor industry.
NXP Semiconductors N.V. (NXPI) Mission Statement
Overview of NXP's Mission Statement
NXP Semiconductors N.V. focuses on enabling secure connections and infrastructure for a smarter world. The company's mission is to deliver innovative semiconductor solutions that drive advancements in automotive, industrial, mobile, and IoT applications.
Core Values and Strategic Goals
- Innovation: NXP emphasizes the importance of innovation in semiconductor technologies to meet evolving market demands.
- Security: The company is committed to providing secure solutions that protect user data and enhance system integrity.
- Sustainability: NXP aims to incorporate sustainable practices in its operations and product development to minimize environmental impact.
- Collaboration: NXP fosters partnerships across various industries to create integrated solutions that encompass the entire ecosystem.
Financial Performance Indicators
To support its mission, NXP Semiconductors has demonstrated strong financial performance. Below are key financial metrics for the third quarter of 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenue | $3,250 million | $3,434 million | (5.4) |
| Gross Profit | $1,866 million | $1,965 million | (5.0) |
| Operating Income | $990 million | $992 million | (0.2) |
| Net Income | $729 million | $792 million | (7.9) |
| EPS (Diluted) | $2.79 | $3.01 | (7.3) |
Investment in Research and Development
NXP places a strong emphasis on R&D to align with its mission of innovation. The following table summarizes R&D expenditures for the nine months ended September 29, 2024:
| Category | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|
| R&D Expenses | $1,735 million | $1,767 million | (1.8) |
| R&D as % of Revenue | 18.3% | 17.9% | 0.4 ppt |
Market Segmentation
NXP operates across various markets, contributing to its mission of delivering tailored solutions. The revenue breakdown by market for the third quarter of 2024 is as follows:
| Market Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| Automotive | $1,829 million | $1,891 million | (3.3) |
| Industrial & IoT | $563 million | $607 million | (7.2) |
| Mobile | $407 million | $377 million | 8.0 |
| Communication Infrastructure & Other | $451 million | $559 million | (19.3) |
Global Reach and Operations
NXP's mission is supported by its global operations, with significant revenue contributions from different geographic regions. The following table highlights revenue by region for the third quarter of 2024:
| Region | Q3 2024 Revenue | Q3 2023 Revenue | Change (%) |
|---|---|---|---|
| China | $1,203 million | $1,150 million | 4.6 |
| APAC (excluding China) | $845 million | $906 million | (6.7) |
| EMEA | $719 million | $866 million | (17.0) |
| Americas | $483 million | $512 million | (5.7) |
Shareholder Returns
NXP is committed to returning value to its shareholders, reflected in its dividend payments and share repurchase programs. The following table summarizes cash returned to shareholders in the first nine months of 2024:
| Type | Amount (in millions) |
|---|---|
| Dividends Paid | $780 million |
| Share Repurchases | $918 million |
How NXP Semiconductors N.V. (NXPI) Works
Company Overview
NXP Semiconductors N.V. (NXPI) is a global semiconductor manufacturer that specializes in various markets, including automotive, industrial, mobile, and communication infrastructure. As of 2024, NXP focuses on enhancing its product offerings in the automotive sector, particularly in advanced driver assistance systems (ADAS) and connectivity solutions.
Financial Performance
For the third quarter of 2024, NXP reported revenue of $3,250 million, a decrease of 5.4% compared to $3,434 million in Q3 2023. Year-to-date (YTD) revenue for the nine months ended September 29, 2024, was $9,503 million, down from $9,854 million in the same period in 2023, reflecting a decline of 3.6%.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenue ($ million) | 3,250 | 3,434 | 9,503 | 9,854 |
| Gross Profit ($ million) | 1,866 | 1,965 | 5,441 | 5,616 |
| Net Income ($ million) | 729 | 792 | 2,037 | 2,119 |
| Diluted EPS ($) | 2.79 | 3.01 | 7.80 | 8.03 |
Revenue Breakdown by End Market
In Q3 2024, the revenue breakdown by end market was as follows:
| End Market | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | % Change |
|---|---|---|---|
| Automotive | 1,829 | 1,891 | (3.3) |
| Industrial & IoT | 563 | 607 | (7.2) |
| Mobile | 407 | 377 | 8.0 |
| Communication Infrastructure & Other | 451 | 559 | (19.3) |
Geographic Revenue Distribution
Revenue by geographic region for Q3 2024 was as follows:
| Region | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) | % Change |
|---|---|---|---|
| China | 1,203 | 1,150 | 4.6 |
| APAC (excluding China) | 845 | 906 | (6.7) |
| EMEA | 719 | 866 | (17.0) |
| Americas | 483 | 512 | (5.7) |
Operating Expenses
Operating expenses for the third quarter of 2024 totaled $871 million, representing 26.8% of revenue, down from $966 million (28.1% of revenue) in Q3 2023. Year-to-date operating expenses for the first nine months of 2024 were $2,684 million, or 28.2% of revenue, compared to $2,852 million (28.9% of revenue) in the prior year.
Research and Development (R&D) Expenses
R&D expenses for Q3 2024 were $577 million, which was 17.8% of revenue, compared to $601 million (17.5% of revenue) in Q3 2023. For the year-to-date period, R&D expenses were $1,735 million (18.3% of revenue) versus $1,767 million (17.9% of revenue) in the previous year.
Liquidity and Capital Resources
As of September 29, 2024, NXP's cash and cash equivalents amounted to $2,748 million, a decrease from $3,862 million at the end of 2023. The company had total debt of $10,182 million, down from $11,175 million at the end of 2023.
| Liquidity Metric | Amount ($ million) |
|---|---|
| Cash and Cash Equivalents | 2,748 |
| Total Debt | 10,182 |
| Net Debt | 7,034 |
Shareholder Returns
NXP returned approximately $1,698 million to shareholders in the first nine months of 2024, which included dividends and share repurchases. The interim dividends paid were $1.014 per ordinary share.
| Dividend Payments | Amount ($ million) |
|---|---|
| January 2024 | 261 |
| April 2024 | 260 |
| July 2024 | 259 |
| October 2024 | 258 |
Future Outlook
NXP is poised for growth with strategic investments in new technologies and markets. The company is focusing on expanding its capabilities in semiconductor manufacturing through partnerships and acquisitions, including a significant investment in VisionPower Semiconductor Manufacturing Company Pte. Ltd.
How NXP Semiconductors N.V. (NXPI) Makes Money
Revenue Streams
NXP Semiconductors generates revenue through various segments, primarily categorized by end markets. As of Q3 2024, the revenue breakdown is as follows:
| End Market | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) | % Change |
|---|---|---|---|
| Automotive | 1,829 | 1,891 | (3.3%) |
| Industrial & IoT | 563 | 607 | (7.2%) |
| Mobile | 407 | 377 | 8.0% |
| Communication Infrastructure & Other | 451 | 559 | (19.3%) |
| Total Revenue | 3,250 | 3,434 | (5.4%) |
Geographic Revenue Distribution
The geographic distribution of revenue for Q3 2024 shows varying performance across regions:
| Region | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) | % Change |
|---|---|---|---|
| China | 1,203 | 1,150 | 4.6% |
| APAC, excluding China | 845 | 906 | (6.7%) |
| EMEA | 719 | 866 | (17.0%) |
| Americas | 483 | 512 | (5.7%) |
| Total Revenue | 3,250 | 3,434 | (5.4%) |
Operating Performance
NXP's operating income for Q3 2024 was $990 million, representing an operating margin of 30.5%. This is an increase from $896 million in the previous quarter, attributed to revenue growth and cost control measures.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Operating Income ($ millions) | 990 | 792 |
| Operating Margin (%) | 30.5 | 23.1 |
Research and Development Expenses
Research and development (R&D) is a significant expense for NXP, reflecting its commitment to innovation. In Q3 2024, R&D expenses were:
| Metric | Q3 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|
| R&D Expenses | 577 | 601 |
| R&D as % of Revenue | 17.8% | 17.5% |
Cash Flow and Capital Return
NXP's cash flow from operations for the first nine months of 2024 was $2,391 million, with capital expenditures amounting to $597 million. The company has been active in returning capital to shareholders through dividends and stock repurchases:
| Capital Return Metrics | YTD 2024 ($ millions) | YTD 2023 ($ millions) |
|---|---|---|
| Dividends Paid | 780 | 745 |
| Share Repurchases | 918 | 619 |
| Total Cash to Shareholders | 1,698 | 1,364 |
Debt and Financial Position
As of September 29, 2024, NXP's total debt was $10,182 million, a decrease from $11,175 million at the end of 2023. The company also reported a net debt position of $7,034 million.
| Debt Metrics | September 29, 2024 ($ millions) | December 31, 2023 ($ millions) |
|---|---|---|
| Total Debt | 10,182 | 11,175 |
| Net Debt | 7,034 | 6,904 |
Net Income and Earnings Per Share
NXP reported a net income of $729 million for Q3 2024, with diluted earnings per share (EPS) of $2.79, compared to $3.01 in Q3 2023.
| Income Metrics | Q3 2024 ($ millions) | Q3 2023 ($ millions) |
|---|---|---|
| Net Income | 729 | 792 |
| Diluted EPS | 2.79 | 3.01 |
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Updated on 16 Nov 2024
Resources:
- NXP Semiconductors N.V. (NXPI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NXP Semiconductors N.V. (NXPI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NXP Semiconductors N.V. (NXPI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.