- Infineon forecasts third-quarter revenue at €3.7 billion, below the estimated €3.84 billion.
- 2025 total investments projected to be €2.3 billion, down from a previous forecast of €2.5 billion.
- The company maintains expectations of free cash flow around €900 million.
- Second quarter revenue reported at €3.59 billion, slightly below the estimate of €3.61 billion and a 1.1% decrease year-over-year.
- Automotive revenue amounted to €1.86 billion, falling short of the estimated €1.91 billion.
- GIP (Green Industrial Power) revenue reached €397 million, exceeding the estimate of €395.7 million.
- PSS (Power & Sensor Systems) revenue reported at €979 million, surpassing the projected €946.5 million.
- CSS (Connected Secure Systems) revenue stood at €356 million, slightly above the estimate of €350.8 million.
- Total segment profit was €601 million, a 15% year-on-year decline but above the estimated €578.8 million.
- The segment result margin for the second quarter was 16.7%, down from 19.5% the previous year but above the estimate of 16%.
- Automotive segment’s result margin outperformed expectations at 20.7%, compared to an estimated 19%.
- GIP segment result margin reported at 9.6%, underperforming the estimate of 13%.
- PSS segment result margin was 14.1%.
- CSS segment result margin was 11.2%, exceeding the estimated 9.96%.
- For the third quarter, the segment result margin is expected to be in the mid-teens percentage range.
- For 2025, Infineon anticipates a slight revenue decline compared to the prior year, considering potential effects from tariff disputes.
- The adjusted gross margin for 2025 is expected to be around 40% with the segment result margin also in the mid-teens percentage range.
- CEO Jochen Hanebeck mentions that the company has applied a 10% revenue haircut in the fourth quarter due to uncertainty from potential tariff disputes, contributing to the anticipated revenue decline.
A look at Infineon Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Infineon Technologies, a company specializing in semiconductors, has been assigned an overall Smart Score of 3 across various key factors – Value, Dividend, Growth, Resilience, and Momentum. This suggests a balanced outlook for the company’s future performance. With a solid presence in sectors such as automotive, industrial, communications, and consumer electronics, Infineon’s products like power semiconductors, microcontrollers, and security controllers cater to diverse market needs.
Despite not scoring exceptionally high in any particular area, Infineon Technologies’ consistent ratings across the board convey a stable long-term projection. The company’s ability to maintain a moderate performance across value, dividend, growth, resilience, and momentum indicates a well-rounded approach to navigating the market. Investors may find comfort in the diversified portfolio and market presence that Infineon Technologies offers, aligning with the company’s strategic positioning in the semiconductor industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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