Infineon Technologies (IFX) Q1 2025 (Media) earnings summary

Executive summary

• Q1 FY25 revenue was €3.424 billion, down 13% sequentially and 8% year-over-year, but exceeded forecasts due to a strong US dollar and slightly better volumes.

• Segment Result declined to €573 million, with a margin of 16.7%, impacted by inventory adjustments and weak market conditions.

• Automotive and Green Industrial Power segments saw significant revenue and margin declines, while Power & Sensor Systems and Connected Secure Systems also faced headwinds.

• Long-term growth drivers in decarbonization, digitalization, and AI data center demand remain robust, especially in China.

• Profit for the period was €246 million, rebounding from a loss in the prior quarter but down 58% year-over-year.

Financial highlights

• Q1 FY25 revenue: €3,424 million (down 8% YoY, down 13% sequentially).

• Segment Result: €573 million; margin at 16.7% (down from 21.2% in Q4 FY24).

• Adjusted gross margin: 41.1% (down from 43.3% in Q4 FY24).

• Free Cash Flow: minus €237 million in Q1 FY25, compared to €1,145 million in Q4 FY24.

• EPS (basic): €0.30 in Q1 FY25, down from €0.42 in Q4 FY24.

Outlook and guidance

• Q2 FY25 revenue expected at about €3.6 billion, with Segment Result Margin in the mid-teens.

• FY25 revenue now expected to be flat to slightly up year-over-year, mainly due to a stronger US dollar.

• Segment Result Margin for FY25 expected in the mid to high teens; adjusted Free Cash Flow forecast at €1.7 billion, reported Free Cash Flow at €900 million.

• FY25 investments planned at €2.5 billion.

• Gradual recovery anticipated in the second half of FY25.