In This Article:
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Q4 Revenue: EUR3.919 billion, up 6% from the previous quarter.
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Full-Year Revenue: EUR14.955 billion, an annual decline of 8%.
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Segment Result Margin: 21.2% for Q4; 20.8% for the full fiscal year.
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Automotive Segment Revenue: EUR2.149 billion in Q4, with a segment result margin of 25.6%.
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Silicon Carbide Revenue: EUR650 million for fiscal year 2024, over 30% year-over-year growth.
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Adjusted Gross Margin: 42.2% for Q4; 42.6% for the full fiscal year.
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Free Cash Flow: EUR1.145 billion for Q4; adjusted free cash flow of EUR1.690 billion for the full fiscal year.
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Investments: EUR722 million in Q4; EUR2.7 billion for the full fiscal year.
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Net Debt: EUR2.66 billion at the end of fiscal year 2024.
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Dividend Proposal: $0.35 per share, unchanged from the prior year.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Infineon Technologies AG (IFNNF) reported the highest sales in the fourth quarter of fiscal year 2024, with group revenues reaching EUR3.919 billion, a 6% increase from the previous quarter.
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The automotive segment achieved revenues of EUR2.149 billion in the final quarter, with a segment result margin of 25.6%, driven by higher volumes in xEV-related solutions and microcontrollers.
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Infineon Technologies AG (IFNNF) continues to see strong momentum in silicon carbide, achieving a significant design win with a major American OEM and reporting EUR650 million in revenue for fiscal year 2024, marking over 30% year-over-year growth.
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The company is making significant strides in innovation, including the development of the world's first 300-millimeter power GaN wafer technology, which is expected to be an industry game changer.
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Infineon Technologies AG (IFNNF) is on track to achieve CO2 neutrality by 2030, with a global rate of green energy usage at almost 90% and a 66% reduction in CO2 emissions by the end of fiscal year 2024.
Negative Points
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Infineon Technologies AG (IFNNF) recorded an annual revenue decline of 8% for the full fiscal year 2024, with the order backlog declining further to around EUR19 billion by the end of September.
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The company faces cyclical headwinds with a sluggish recovery in most markets, particularly in automotive, where customers are actively managing inventories downwards.
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The adjusted gross margin for the full fiscal year 2024 was 42.6%, a noticeable decline of 470 basis points compared to the record year 2023, due to lower volumes and rising idle costs.
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Infineon Technologies AG (IFNNF) expects significant further inventory reduction by customers, leading to a projected sequential revenue decline of around 18% in the first quarter of fiscal year 2025.
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The company anticipates idle charges to rise to close to EUR1 billion for the whole of fiscal year 2025, posing a challenge to margin improvement despite efforts to support profitability.