corporate

[UPDATED] Infineon sees 'subdued' 2025 after Q4 revenue in line with expectations

BERLIN: German chipmaker Infineon said on Tuesday that it expected "subdued" performance in 2025, citing weak demand in its end markets.

"With the exception of artificial intelligence, our end markets are currently offering hardly any growth impetus and the cyclical recovery is delayed," said CEO Jochen Hanebeck. "We are therefore preparing for a subdued business performance in 2025."

The company warned of a slight revenue decline in the current financial year, after revenue fell by 8 per cent to 14.96 billion euros ($15.90 billion) in 2023-24.

In August, Infineon narrowed its annual revenue guidance to around 15 billion euros, having already twice lowered it.

The segment result margin - management's preferred measure of operating profitability - is expected to deteriorate from 20.8 per cent to between 15 per cent and just below 20 per cent in 2025, according to a statement.

Infineon posted fourth-quarter revenue of 3.919 billion euros, broadly in line with the 4 billion forecast in a company-provided consensus.

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