Infineon Technologies (IFX) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue was €3,591 million, up 5% sequentially but down year-over-year, led by Automotive and Green Industrial Power, with Power & Sensor Systems stable.

• Segment Result Margin held at 16.7%, reflecting lower prices and underutilization costs, partially offset by productivity gains.

• Profit for the period declined year-over-year, with basic EPS at €0.18 and adjusted diluted EPS at €0.34.

• Free Cash Flow improved to €174 million in Q2 FY25, turning positive from the previous quarter.

• Announced acquisition of Marvell's Automotive Ethernet business for $2.5 billion, expected to close in 2025.

Financial highlights

• Gross margin in Q2 FY25 was 38.7%, with adjusted gross margin at 40.9%.

• Segment Result was €601 million; operating profit was €318 million.

• Free Cash Flow in Q2 FY25 was €174 million; investments totaled €470 million.

• Net cash position was negative €3,829 million at 31 Mar 2025.

• Dividend of €0.35 per share paid, totaling €455 million.

Outlook and guidance

• FY25 revenue is now expected to slightly decline year-over-year, revised down due to tariff disputes and currency effects.

• Segment Result Margin forecasted in the mid-teens percentage; adjusted gross margin around 40%.

• Free Cash Flow guidance for FY25 is €900 million; adjusted Free Cash Flow at €1.6 billion.

• Investments for FY25 reduced to €2.3 billion.

• Q3 FY25 revenue expected at €3.7 billion, with GIP and PSS outpacing group average, ATV flat, CSS to decline.