In This Article:
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Revenue: EUR3.591 billion, up 5% compared to the previous quarter.
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Segment Result: EUR601 million with a segment result margin of 16.7%.
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Automotive Revenue: EUR1.858 billion, reflecting a 6% sequential growth.
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Automotive Segment Result: EUR385 million, with a segment result margin of 20.7%.
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Green Industrial Power Revenue: EUR397 million, a 17% increase quarter-over-quarter.
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Green Industrial Power Segment Result: EUR38 million, with a segment result margin of 10%.
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Power & Sensor Systems Revenue: EUR979 million, flat compared to the previous quarter.
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Power & Sensor Systems Segment Result: EUR138 million, with a segment result margin of 14.1%.
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Connected Secure Systems Revenue: EUR356 million, a 3% increase compared to the previous quarter.
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Connected Secure Systems Segment Result: EUR40 million, with a segment result margin of 11.2%.
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Gross Margin: Adjusted gross margin at 40.9%, reported gross margin at 38.7%.
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Research and Development Expenses: EUR559 million, up from EUR544 million in the previous quarter.
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Selling, General and Administrative Expenses: EUR376 million, down from EUR395 million.
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Free Cash Flow: Improved to EUR174 million from EUR237 million in the previous quarter.
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Order Backlog: Approximately EUR20 billion, constant quarter-over-quarter.
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CapEx: EUR470 million, down from EUR731 million in the previous quarter.
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Net Leverage: 1.1 times.
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Effective Tax Rate: 22%.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Infineon Technologies AG (IFNNF) reported a 5% increase in revenues for the March quarter, reaching EUR3.591 billion.
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The Automotive segment achieved healthy sequential growth of 6%, with revenues of EUR1.858 billion, confirming improvement in inventory digestion.
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Infineon remains the number one global automotive semiconductor provider with a market share of 13.5%, and has improved its regional positions.
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The company announced the strategic acquisition of Marvell's automotive Ethernet business for $2.5 billion, expected to strengthen its market-leading microcontroller franchise.
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Infineon is making significant strides in sustainability, with its SECORA Pay Green solution recognized by Mastercard for sustainable payment technologies.
Negative Points
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The geopolitical environment has become more volatile, with U.S. import tariffs likely to create headwinds for global vehicle production.
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Infineon revised its revenue outlook for fiscal 2025 to slightly down due to potential tariff-related demand effects and adverse currency impacts.
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The Green Industrial Power segment's revenue level is 15% below last year's, indicating a slow recovery in industrial markets.
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Pricing pressures persist in the industrial markets, particularly for standard power components in China, affecting market expansion.
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Idle charges in the second half of the fiscal year are expected to be higher than previously anticipated, constituting a margin headwind.