Infineon's 2024 fiscal year saw a year-on-year decrease of 8%
Infineon Technologies AG has released its financial report for the fourth quarter of the 2024 fiscal year, providing insights into the company's recent operational performance and offering guidance on its future development. During the 2024 fiscal year, Infineon's overall business figures exhibited certain changes. The company achieved revenues of 14.955 billion euros , marking an 8% year-on-year decline compared to the previous fiscal year. In terms of profits, the company attained 3.105 billion euros with a profit margin of 20.8%, which to some extent reflects the company's profitability12. Adjusted earnings per share were 1.87 euros . Meanwhile, free cash flow was 23 million euros, and adjusted free cash flow reached 1.690 billion euros. These cash flow figures are of significant importance to the company's operations and growth.
In the fourth quarter of the 2024 fiscal year, Infineon's revenues were 3.919 billion euros, with profits reaching 832 million euros and a profit margin of 21.2%. This set of data showcases the company's performance during the quarter and provides a basis for analyzing short-term business trends.
Looking ahead to the first quarter of the 2025 fiscal year, Infineon has made some predictions. Assuming an exchange rate of 1:1.10 for euros to dollars, revenues are expected to be approximately 3.2 billion euros. Based on this, the profit margin is forecasted to be in the range of approximately 14% to 16%, giving investors and the market a general expectation for the company's short-term future development.
For the overall 2025 fiscal year, assuming an exchange rate of 1:1.10 for euros to dollars, revenues are predicted to decline slightly compared to the previous fiscal year. The adjusted gross margin is expected to be around 40%, with the profit margin forecasted between 14% and 19%. These data and predictions reflect the company's expectations for the business environment and strategic planning in the coming year.
Jochen Hanebeck, CEO of Infineon Technologies, stated, "In the 2024 fiscal year, Infineon performed well, with results meeting expectations. However, we are currently facing some challenges. Currently, apart from the AI sector, our end markets are experiencing sluggish growth, and the cyclical recovery has been delayed, impacting our business development. Inventory adjustments are ongoing, and short-term ordering patterns and inventory digestion have made demand trends for the coming quarters uncertain, increasing the complexity of our business decisions. Therefore, we are preparing for slower business growth in the 2025 fiscal year. Nevertheless, we won't sit idly by; we will continue to implement structural measures from the 'Step Up' plan to enhance our competitiveness. Combined with Infineon's innovation capabilities, we are preparing for the driving forces of structural growth, positioning ourselves favorably in future economic recovery trends and laying a solid foundation for the company's long-term development."
