Infineon achieves record revenue and earnings
Expects further revenue growth to € 17 billion and a Segment Result Margin of 24 percent for 2024.
Today, Infineon Technologies AG is reporting results for the fourth quarter and the full fiscal year, both of which ended on 30 September 2023:
Q4 FY 2023: Revenue €4.149 billion, Segment Result €1.044 billion, Segment Result Margin 25.2 percent, Free Cash Flow €614 million
FY 2023: Revenue €16.309 billion, up 15 percent on the prior year; Segment Result €4.399 billion, up 30 percent year on year; Segment Result Margin 27.0 percent; adjusted earnings per share €2.65, up 35 percent on the prior year; Free Cash Flow €1.158 billion, adjusted Free Cash Flow €1.638 billion
Outlook for FY 2024: Based on an assumed exchange rate of US$1.05 to the euro, revenue of around €17 billion (plus or minus €500 million) expected, with a Segment Result Margin of around 24 percent at the mid-point of the guided revenue range. Adjusted gross margin should be around 45 percent. Investments of approximately €3.3 billion planned. Free Cash Flow adjusted for investment in frontend buildings and the acquisition of GaN Systems should be around €2.2 billion and reported Free Cash Flow around €400 million
Outlook for Q1 FY 2024: Based on an assumed exchange rate of US$1.05 to the euro, revenue of around €3.8 billion expected. On this basis, Segment Result Margin forecast to be around 22 percent
Dividend proposal for FY 2023: Increase from €0.32 to €0.35 per share
"In the 2023 fiscal year, Infineon has set new records for revenue and profitability. The results are an initial confirmation of our more ambitious course we embarked on as a company a year ago," says Jochen Hanebeck, CEO of Infineon. "Nevertheless, we find ourselves in an environment that continues to present challenges. We are seeing different trends in our target markets. Structural semiconductor growth in the areas of renewable energy, electromobility – especially in China – and microcontrollers for the automotive industry remains unabated. In contrast, consumer, communication, computing and IoT applications are experiencing a temporary period of low demand. Overall, we are expecting revenue growth to continue in the 2024 fiscal year but at a slower rate. We are reacting decisively to the market situation. At the same time, we are continuing to implement our strategy consistently with regard to structural growth opportunities and we are reinforcing our leading position in power systems and IoT with long-term investments."
