Earnings Release Q2 FY 2025: Outlook raised after strong first half year results, especially in the second quarter – focus on profitable growth

Christian Bruch, President and CEO of Siemens Energy AG:

“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”

Due to the positive business development in the first half-year and the strong market demand, Siemens Energy updates the outlook for fiscal year 2025. The change in the outlook is driven by stronger than expected performances at Gas Services, Grid Technologies and Transformation of Industry. Regarding Free cash flow pre tax, the higher outlook is particularly attributable to Gas Services and Grid Technologies, which both expe-rience strong cash inflows driven by customer payments related to strong order momentum. At Siemens Gamesa we continue to work on the measures to reach break-even in fiscal year 2026. We still expect sales activities for the 5.X onshore turbine to resume during fiscal year 2025.

Siemens Energy now expects for the Group to achieve comparable revenue growth (excluding currency translation and portfolio effects) in fiscal year 2025 in a range of 13% to 15% (before 8% and 10%) and a Profit margin before Special items between 4% and 6% (before between 3% and 5%). Siemens Energy expects a Net income of up to €1bn (before around break-even) 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 2025 fiscal year is updated to around €4bn (before to exceed the original guidance of up to €1bn).

The outlook for Siemens Energy does not include charges related to any future legal and regulatory matters.

Amended overall assumptions per business area

• Gas Services assumes a comparable revenue growth of 11% to 13% (before 7% to 9%) and a Profit margin before Special items of 11% to 13% (before 10% to 12%).
• Grid Technologies plans to achieve a comparable revenue growth of 24% to 26% (before 23% to 25%) and a Profit margin before Special items between 14% and 16% (before between 10% and 12%).
• Transformation of Industry expects a comparable revenue growth of 13% to 15% (before 11% to 13%) and a Profit margin before Special items of 9% to 11% (before 8% to 10%).
• Siemens Gamesa assumes a comparable revenue growth of 0% to 2% (before negative 9% to negative 5%) and a negative Profit before Special items of around €1.3bn (unchanged).

This document contains statements related to our future business and financial performance, and future events or developments involving Siemens Energy that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “antici-pate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. We may also make forward-looking statements in other reports, prospectuses, in presentations, in material delivered to shareholders, and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens Energy´s management, of which many are beyond Siemens Energy´s control. These are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in disclosures, in particular in the chapter “Report on expected developments and associated material opportunities and risks” in the Annual Report and the Half-year Financial Report, which should be read in conjunction with the Annual Report. Should one or more of these risks or uncertainties materialize, should acts of force majeure, such as pandemics, occur, or should underlying expectations including future events occur at a later date or not at all, or should assumptions not be met, Siemens Energy´s actual results, perfor-mance, or achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens Energy neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of develop-ments which differ from those anticipated. This document includes supplemental financial measures – that are not clearly defined in the applicable financial reporting framework – and that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens Energy´s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its consolidated financial statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.