Outlook raised after strong first half year results, especially in the second quarter – focus on profitable growth
“The rising demand for electricity led to an exceptionally strong quarter and first half of the fiscal year for our business. The improved outlook reflects our confidence in the ongoing market opportunities and our excellent project execution. Even in light of the uncertain macroeconomic factors, our focus remains on profitable growth”, says Christian Bruch, President and CEO of Siemens Energy AG.
- After the strong start to the fiscal year, Siemens Energy's positive development continued in the recent quarter. Favorable market trends have led to a broad-based increase in demand for our products. In addition, Siemens Energy demonstrated strong project execution and operational performance in the quarter, to which all segments contributed. Overall, Siemens Energy achieved one of the strongest quarters ever.
- Siemens Energy's orders amounted to €14.4bn. This was 52.3% higher than in the prior-year quarter on a comparable basis (excluding currency translation and portfolio effects). In addition to sharp growth at Grid Technologies, the upturn was primarily due to Gas Services, which recorded
- the highest orders in a quarter to date. Book-to-bill ratio (ratio of orders to revenue) was again strong with 1.45, leading to a new record level of €133bn in the order backlog.
- Revenue increased double-digit in all segments. Overall, revenue grew by 20.7% on a comparable basis to €10.0bn.
- Siemens Energy's Profit before Special items amounted to €906m, reflecting a margin of 9.1%. All segments contributed to the increase year-over-year (Q2 FY 2024: €170m). Special items were negative €291m (Q2 FY 2024: positive €331m) primarily relating to the sale of the Indian wind business. Siemens Energy's Profit came in at €615m (Q2 FY 2024: €501m).
- Net income was €501m (Q2 FY 2024: €108m). The corresponding basic earnings per share amounted to €0.50 (Q2 FY 2024: €0.08).
- Free cash flow pre tax amounted to €1,390m, sharply increased compared to the prior-year's figure (Q2 FY 2024: €483m). Almost all segments contributed to this improvement. In addition to the profit development, this was primarily due to customer payments including reservation fees.
- Due to the positive business development, Siemens Energy updates the outlook for fiscal year 2025. Siemens Energy now expects for the Group
- to achieve comparable revenue growth in fiscal year 2025 in a range of 13% to 15% and a Profit margin before Special items between 4% and 6%. Siemens Energy expects a Net income of up to €1bn excluding assumed positive Special items subsequent to the demerger of the energy business from Siemens Limited, India. The outlook for Free cash flow pre tax for the fiscal year 2025 is updated to around €4bn.
- In April 2025, the government of the USA, among others, announced tariffs on imports from various countries. Siemens Energy is closely monitoring developments and continuously analysing their potential impact on its net assets, financial position and results of operations. For the second half of the fiscal year 2025, a limited direct impact on Siemens Energy’s Profit of up to a high double-digit million € amount, after mitigation measures, is currently expected.
