Infineon achieves record revenue and earnings in the 2023 fiscal year and expects further revenue growth

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Infineon Technologies AG has shown impressive financial results for the fourth quarter and the full fiscal year ending on September 30, 2023. The company reported record-breaking revenue and profitability, marking a significant milestone in its strategic direction over the past year.

Jochen Hanebeck, CEO of Infineon, expressed confidence in the company’s achievements, stating, “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.” However, he acknowledged the challenges within the market environment, citing varying trends in target markets.

Key financial highlights for the fourth quarter of fiscal year 2023 include revenue of €4.149 billion, Segment Result of €1.044 billion, and a Segment Result Margin of 25.2 percent. The Free Cash Flow for the quarter amounted to €614 million.

For the entire fiscal year 2023, Infineon reported revenue of €16.309 billion, reflecting a remarkable 15 percent increase over the prior year. The Segment Result reached €4.399 billion, marking a significant 30 percent year-on-year growth, with a Segment Result Margin of 27.0 percent. Adjusted earnings per share stood at €2.65, demonstrating a notable 35 percent increase over the previous year. The Free Cash Flow for the fiscal year amounted to €1.158 billion, while adjusted Free Cash Flow reached €1.638 billion.

Looking ahead to the fiscal year 2024, Infineon anticipates continued revenue growth, albeit at a slower rate. The company expects revenue to reach around €17 billion, with a Segment Result Margin of approximately 24 percent at the midpoint of the guided revenue range. The adjusted gross margin is projected to be around 45 percent, with planned investments of approximately €3.3 billion. Adjusted Free Cash Flow, factoring in investments in frontend buildings and the acquisition of GaN Systems, is forecasted to be around €2.2 billion, while reported Free Cash Flow is estimated to be around €400 million.

For the first quarter of fiscal year 2024, Infineon forecasts revenue of around €3.8 billion, with a Segment Result Margin of approximately 22 percent, assuming an exchange rate of US$1.05 to the euro.

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