Teradyne Reports $2.82 Billion Revenue and $542.4 Million Net Income for Fiscal Year 2024

Teradyne, Inc. reported a total revenue of $2.82 billion for the fiscal year ending December 31, 2024, marking a 5.4% increase from $2.68 billion in 2023. The company's net income rose to $542.4 million, or $3.32 per diluted share, compared to $448.8 million, or $2.73 per diluted share, in the previous year. This growth in profitability was attributed to a strong performance in the Semiconductor Test segment, which generated $2.12 billion in revenue, an 8.5% increase from $1.96 billion in 2023. However, the Robotics segment experienced a decline in revenue, falling to $364.8 million from $375.2 million, primarily due to ongoing weakness in the industrial automation market.

In 2024, Teradyne made significant strategic moves, including the acquisition of a 10% equity stake in Technoprobe, S.p.A. for approximately $524.1 million. This acquisition was accompanied by the sale of Teradyne's Device Interface Solutions business to Technoprobe for $85 million, resulting in a pre-tax gain of $57.1 million. The company also introduced new products, such as the MiR 1200 Pallet Jack, aimed at expanding its market presence in the robotics sector. Despite the challenges in the industrial automation market, Teradyne established key partnerships with original equipment manufacturers (OEMs) and systems integrators, which are expected to enhance its market strategy in the coming years.

Operationally, Teradyne's customer base remained concentrated, with its five largest customers accounting for 36% of total revenues in 2024, up from 32% in 2023. The company reported a backlog of unfilled orders totaling $1.16 billion as of December 31, 2024, compared to $1.12 billion in the previous year. The Semiconductor Test segment accounted for the majority of this backlog, reflecting strong demand in the semiconductor industry. Geographically, Teradyne saw notable revenue growth in Korea and Taiwan, which contributed 25% and 21% of total revenues, respectively.

The company faced challenges related to supply chain constraints and inflationary pressures, particularly in the first half of 2023. However, improvements in supply chain conditions were noted in the latter half of 2023 and throughout 2024, leading to a stabilization in lead times and costs. Teradyne's capital allocation strategy remains focused on balancing investments in organic and inorganic growth while returning cash to shareholders through dividends and share repurchases. In 2024, the company repurchased $199.4 million of its common stock and declared a quarterly cash dividend of $0.12 per share.

Looking ahead, Teradyne anticipates continued growth in its Semiconductor Test business, driven by advancements in artificial intelligence and increased demand in mobile, automotive, and industrial markets. The company expects to leverage its strategic partnerships and new product introductions to enhance its market position. However, it also cautions that a strengthening U.S. dollar could negatively impact its Robotics revenue growth in 2025, as a significant portion of this revenue is denominated in foreign currencies. Overall, Teradyne's management remains optimistic about the company's long-term growth prospects while navigating the challenges of a competitive and evolving market landscape.