In This Article:
-
Group Revenue: EUR3.424 billion, a 13% decline quarter over quarter, but EUR200 million ahead of expectations.
-
Segment Result: EUR573 million, with a segment result margin of 16.7%.
-
Automotive Revenue: EUR1.919 billion, an 11% decline quarter over quarter.
-
Automotive Segment Result: EUR363 million, with a segment result margin of 18.9%.
-
Green Industrial Power Revenue: EUR340 million, a 32% decline quarter over quarter.
-
Green Industrial Power Segment Result: EUR34 million, with a segment result margin of 10%.
-
Power & Sensor Systems Revenue: EUR820 million, a 5% decline quarter over quarter.
-
Power & Sensor Systems Segment Result: EUR149 million, with a segment result margin of 18.2%.
-
Connected Secure Systems Revenue: EUR344 million, a 15% decline quarter over quarter.
-
Connected Secure Systems Segment Result: EUR30 million, with a segment result margin of 8.7%.
-
Adjusted Gross Margin: 41.1%, down from 43.3% in the previous quarter.
-
Free Cash Flow: Minus EUR237 million.
-
Investments: EUR731 million in property, plant, equipment, and other intangible assets.
-
Order Backlog: Approximately EUR20 billion.
-
Net Debt: EUR3 billion, with a net leverage of 0.8 times.
Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Infineon Technologies AG (IFNNF) reported revenue and margin numbers slightly ahead of expectations for the December quarter, with group revenues amounting to EUR3.424 billion.
-
The company has a strong position in the automotive semiconductor market, with significant design wins and increased orders, particularly in China.
-
Infineon is experiencing strong growth in its silicon carbide market, outpacing other established players and securing major design wins.
-
The company is well-positioned in the AI server power solutions market, with expectations to achieve around EUR600 million in AI-related revenue this fiscal year.
-
Infineon is implementing its Step Up Initiative, which is expected to yield significant financial benefits in the coming years, contributing to improved structural profitability.
Negative Points
-
Infineon Technologies AG (IFNNF) is facing cyclical market headwinds, particularly in the automotive and industrial sectors, with ongoing inventory corrections.
-
The company's Green Industrial Power division experienced a steep revenue decline of 32% due to weak market momentum and elevated supply chain inventories.
-
The Connected Secure Systems segment saw a 15% revenue decline, reflecting ongoing weakness in consumer and IoT markets.
-
Infineon is dealing with high idle charges due to underutilized capacities, which are expected to be a margin headwind of around 500 basis points for the fiscal year.
-
The company faces uncertainties from geopolitical tensions and potential trade conflicts, which could impact customer demand and overall business performance.