EQS-News: Revenue growth in the second quarter confirms expected economic recovery

 Revenue growth in the second quarter confirms expected economic recovery. Tariff disputes lead to uncertainty in the second half of the fiscal year accompanied by negative currency effects  

• Q2 FY 2025: Revenue €3.591 billion, Segment Result €601 million, Segment Result Margin 16.7 percent
• Outlook for Q3 FY 2025: Based on an assumed exchange rate of US$1.125 to the euro, revenue is expected to reach €3.7 billion. On this basis, the Segment Result Margin is forecast to be in the mid-teens percentage range
• Outlook for FY 2025: Based on an assumed exchange rate of US$1.125 to the euro (previously 1.05), Infineon expects now revenue to slightly decline compared with the prior year. This includes a guesstimate of potential effects related to tariff disputes. The adjusted gross margin should be around 40 percent and the Segment Result Margin now in the mid-teens percentage range. Investments are reduced to around €2.3 billion. Adjusted Free Cash Flow (Free Cash Flow adjusted for investment in frontend buildings) should now be around €1.6 billion and reported Free Cash Flow unchanged at around €900 million

Neubiberg, 8 May 2025 – Today, Infineon Technologies AG is reporting results for the second quarter of the 2025 fiscal year (period ended 31 March 2025).

"Infineon has performed well in the second quarter. Even at an more unfavorable exchange rate of $1.125 to the euro, we would be right on track and in line with our previous expectations for the fiscal year. Given that order intake still shows no signs at all of slowing down, we can only guesstimate the effects of tariff disputes. We have therefore applied a haircut of 10 percent of expected revenue in the fourth quarter of the 2025 fiscal year. We are now anticipating a slight decline in revenue compared with the prior year," says Jochen Hanebeck, CEO of Infineon.

Group performance in the second quarter of the 2025 fiscal year

Group revenue rose from €3,424 million in the first quarter of the 2025 fiscal year to €3,591 million in the second quarter. The 5 percent increase in revenue was the result of greater demand in the Automotive (ATV), Green Industrial Power (GIP) and Connected Secure Systems (CSS) segments. In the Power & Sensor Systems (PSS) segment, revenue remained virtually constant.

1 The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.

2 The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

The gross margin achieved in the second quarter of the 2025 fiscal year was 38.7 percent, compared with 39.2 percent in the prior quarter. The adjusted gross margin came in at 40.9 percent, compared with 41.1 percent in the first quarter of the current fiscal year.

The Segment Result increased by 5 percent in the second quarter of the 2025 fiscal year to €601 million, up from €573 million in the prior quarter. The Segment Result Margin was 16.7 percent, the same as in the first quarter of the 2025 fiscal year. A compensation payment from a customer of a mid-double-digit million amount was included in the Segment Result for the first quarter.

The Non-Segment Result for the second quarter of the 2025 fiscal year was a net loss of €283 million, compared with a net loss of €255 million in the prior quarter. The second-quarter Non-Segment Result comprised €76 million relating to cost of goods sold, €14 million relating to research and development expenses and €53 million relating to selling, general and administrative expenses. In addition, it included net operating expenses of €140 million. The main component of this figure is impairment losses recognized in connection with the planned sale of the 200-millimeter production facilities in Austin (USA).

Infineon generated operating profit in both the first and second quarters of the 2025 fiscal year of €318 million.

The financial result in the second quarter of the 2025 fiscal year was a net loss of €28 million, compared with a net loss of €17 million in the first quarter.

The tax expense in the second quarter of the current fiscal year amounted to €63 million, compared with €60 million in the prior quarter.

Profit from continuing operations achieved in the second quarter of the current fiscal year was €230 million, compared with €243 million in the first quarter. The result from discontinued operations was €2 million, after €3 million in the prior quarter. The profit for the period in the second quarter was €232 million. In the first quarter of the 2025 fiscal year, the profit for the period was €246 million.

Basic earnings per share from continuing operations in both the first and second quarters of the current fiscal year stood at €0.18, while diluted earnings per share from continuing operations stood at €0.17 at the end of the second quarter of the 2025 fiscal year, compared with €0.18 in the prior quarter. Adjusted earnings per share³ (diluted) rose in the second quarter of the current fiscal year to €0.34, up from €0.33 in the first quarter.

Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs –decreased from €731 million in the first quarter of the 2025 fiscal year to €470 million in the second quarter. Depreciation and amortization in the second quarter of the current fiscal year amounted to €483 million, compared with €487 million in the first quarter.

Free Cash Flow in the second quarter of the 2025 fiscal year came in at a positive figure of €174 million, compared with a negative figure of €237 million in the prior quarter.

The gross cash position at the end of the second quarter of the current fiscal year amounted to €1,687 million, compared with €1,957 million at the end of the prior quarter. Financial debt at 31 March 2025 stood at €5,516 million, compared with €4,943 million at 31 December 2024. The net cash position was therefore a negative amount of €3,829 million, compared with a negative amount of €2,986 million at the end of the prior quarter. In addition to the payment of the dividend of €455 million in February 2025, repayments were made in the second quarter of a €500 million bond when it fell due as well as the first €600 million tranche of the hybrid bond. Transactions that had the opposite effect of increasing Infineon’s financial debt as well as financial resources were the issue of a new five-year bond with a nominal value of €750 million and the utilization of short-term credit lines.

Outlook for the third quarter of the 2025 fiscal year

In the third quarter of the 2025 fiscal year, based on an assumed exchange rate of US$1.125 to the euro, Infineon expects revenue to reach about €3.7 billion. The GIP and PSS segments should see a percentage growth rate that is higher than the Group average. Revenue in the ATV segment is expected to remain unchanged and for the CSS segment a revenue decline is expected compared to the previous quarter. The Segment Result Margin is forecast to be in the mid-teens percentage range.

Outlook for the 2025 fiscal year

The outlook for the 2025 fiscal year excludes the planned acquisition of the automotive Ethernet business of Marvell Technology, Inc., USA, ("Marvell"). In particular, it does not take account of the purchase price payment, since the transaction is still subject to the customary closing conditions and regulatory approvals.

Based on an assumed exchange rate of US$1.125 to the euro (previously 1.05), revenue in the 2025 fiscal year is now forecast to slightly decline in comparison with the 2024 fiscal year (previously flat to slightly up). The revised outlook, in addition to the change in assumption about exchange rates, includes a haircut resulting from tariff disputes of 10 percent of expected revenue in the fourth quarter of the 2025 fiscal year. Without the haircut the forecast would have remained essentially unchanged.

The adjusted gross margin should be around 40 percent and the Segment Result Margin now in the mid-teens percentage range (before mid-to-high-teens percentage range).

Investments – which Infineon defines as the sum of investments in property, plant and equipment, investments in other intangible assets and capitalized development costs – are now planned at around €2.3 billion for the 2025 fiscal year (previously €2.5 billion).

Depreciation and amortization are anticipated to be now around €1.9 billion (previously €2.0 billion) in the 2025 fiscal year, of which approximately €400 million is attributable to amortization of purchase price allocations arising mainly from the acquisition of Cypress. Adjusted Free Cash Flow is forecast to be about €1.6 billion (previously €1.7 billion). Free Cash Flow should be unchanged around €900 million. It is still expected that Return on Capital Employed (RoCE) will reach a mid-single-digit percentage rate.

3 Adjusted profit (loss) for the period and adjusted earnings per share (diluted) should not be seen as a replacement or as superior performance indicator, but rather as additional information to profit (loss) for the period and earnings per share (diluted) determined in accordance with IFRS.

Infineon’s segments’ performance in the seccond quarter of the 2025 fiscal year can be found in the quarterly information at www.infineon.com.

All figures in this quarterly information are preliminary and unaudited.

Telephone press conference and analyst telephone conference

On 8 May 2025 the Management Board of Infineon will host a telephone press conference with the media at 8:00 am (CEST), 2:00 am (EDT). It can be followed over the Internet in both English and German. In addition a telephone conference call including a webcast for analysts and investors (in English only) will take place at 9:30 am (CEST), 3:30 am (EDT). During both calls, the Infineon Management Board will present the Company’s results for the second quarter as well as the outlook for the third quarter and the 2025 fiscal year. The conferences will also be available live and as replay on Infineon’s website at www.infineon.com/investor

The Q2 Investor Presentation is available (in English only) at:

https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/

Infineon Financial Calendar (*preliminary)

•      21 May 2025 JP Morgan European TMT Conference, London
•      27 May 2025 dB Access European Champions Conference, Frankfurt
•      29 May 2025 Cowen Annual TMT Conference, New York
•      3 Jun 2025 Bank Pekao Technology & Consumer Conference, virtual
•      3 - 4 Jun 2025 BNP Paribas Exane CEO Conference, Paris
•      10 Jun 2025 Barclays EMEA Technology Conference, London
•      11 Jun 2025 BofA C-Suite TMT Conference, London
•      5 August 2025* Earnings Release for the Third Quarter of the 2025 Fiscal Year
•      13 November 2025* Earnings Release for the Fourth Quarter and the
  2025 Fiscal Year

About Infineon

Infineon Technologies AG is a global semiconductor leader in power systems and IoT. Infineon drives decarbonization and digitalization with its products and solutions. The Company had around 58,060 employees worldwide (end of September 2024) and generated revenue of about €15 billion in the 2024 fiscal year (ending 30 September). Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the OTCQX International over-the-counter market (ticker symbol: IFNNY).

Further information is available at https://www.infineon.com/

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D I S C L A I M E R

This press release contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected.

Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

All figures mentioned in this press release are preliminary and unaudited.