Infineon Achieves Record Revenue and Earnings in 2023 Fiscal Year

Infineon Technologies AG is reporting results for the fourth quarter and the full fiscal year, both of which ended on Sept. 30, 2023.

Highlights included:
• Q4 FY 2023: Revenue €4.149 billion, segment result €1.044 billion, segment result margin 25.2%, free cash flow €614 million.
• FY 2023: Revenue €16.309 billion, up 15% on the prior year; segment result €4.399 billion, up 30% year on year; segment result margin 27.0%; adjusted earnings per share €2.65, up 35% 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% at the mid-point of the guided revenue range. Adjusted gross margin should be around 45%. 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%
• 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,” said 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,” Hanebeck added. “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,” Hanebeck concluded. “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.”