Infineon Concludes FY 2024 with Increase in Revenue and Earnings in Last Quarter

Infineon Technologies AG is reporting results for the fourth quarter and the full fiscal year, both of which ended on Sept. 30, 2024.

Key highlights include:
• Q4 FY 2024: Revenue €3.919 billion, segment result €832 million, segment result margin 21.2%
• FY 2024: Revenue €14.955 billion, down 8% on the prior year; segment result €3.105 billion; segment result margin 20.8%; adjusted earnings per share €1.87; free cash flow €23 million, adjusted free cash flow €1.690 billion
• Dividend proposal for FY 2024: Dividend unchanged at €0.35 per share
• Outlook for Q1 FY 2025: Based on an assumed exchange rate of US$1.10 to the euro, revenue of around €3.2 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$1.10 to the euro, revenue is expected to slightly decline compared with previous year. The adjusted gross margin should be around 40% 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 front-end buildings should be around €1.7 billion and reported free cash flow around €900 million

“Infineon has managed the 2024 fiscal year well and concluded it in line with expectations,” says Jochen Hanebeck, CEO of Infineon. “Currently, there is hardly any growth momentum in our end markets except from AI, the cyclical recovery is being delayed. The inventory correction is continuing. Short-term ordering patterns and inventory digestion are clouding visibility on demand trends beyond the next couple of quarters.

“We are therefore preparing for a muted business trajectory in 2025,” he added. “At the same time, we are relying on the consistent implementation of the structural measures in our ‘Step Up’ program to strengthen our competitiveness. In combination with our innovative power, we are addressing our structural growth drivers and putting ourselves in the best position for a coming upturn.”