Infineon Beats Fiscal Year Start Expectations, Raises Outlook on Currency Effects

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Infineon Technologies AG is reporting results for the first quarter of the 2025 fiscal year (period ended 31 December 2024).

"Infineon has held up well in a weak market environment, closing its first quarter slightly ahead of expectations," says Jochen Hanebeck, CEO of Infineon. "Against a continued uncertain economic backdrop, our business trajectory in this fiscal year is following the pattern we expected: Following the expected inventory reduction, we continue to anticipate that the recovery in demand will be gradual for the current fiscal year. The positive stand-out is the move towards increased use of artificial intelligence, which is driving demand for our leading power supply solutions for AI data centers. This is a prime example of our long-term growth drivers, digitalization and decarbonization."

Highlights:

• Q1 FY 2025: Revenue €3.424 billion, Segment Result €573 million, Segment Result Margin 16.7 percent
• Outlook for Q2 FY 2025: Based on an assumed exchange rate of US$1.05 to the euro, revenue of around €3.6 billion expected. On this basis, Segment Result Margin forecast to be in the mid-teens percentage range
• Outlook for FY 2025: Based on an assumed exchange rate of US$1.05 to the euro (previously US$1.10), revenue is now expected to be flat to slightly up (previously: to decline slightly) compared with the prior year. The adjusted gross margin should be around 40 percent and the Segment Result Margin in the mid-to-high-teens percentage range. Investments of approximately €2.5 billion planned. Free Cash Flow adjusted for investments in frontend buildings should be around €1.7 billion and reported Free Cash Flow around €900 million

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