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Siemens Energy has announced its results for the first quarter of fiscal year 2025, which ended December 31, 2024. The company began the new fiscal year with strong performance, benefiting from continued favorable demand for its products and sustained order trends. The company’s revenue, profit before special items, and cash flow all significantly exceeded the figures from the prior year quarter, with all segments contributing to the improvements.
Q1 2025 Highlights:
- Orders of Siemens Energy amounted to €13.7bn. As expected, this was below the high level of the prior-year quarter, in which Grid Technologies and Transformation of Industry had booked exceptionally high orders. Book-to-bill ratio (ratio of orders to revenue) was 1.53, leading to a record order backlog of €131bn.
- Revenue of €8.9bn increased by 18.4% on a comparable basis (excluding currency translation and portfolio effects), with all segments recording growth.
- Profit before special items of Siemens Energy more than doubled year-over-year to €481m (Q1 FY 2024: €208m) again held back by results of Siemens Gamesa, but to a significantly lesser extent than in the prior-year quarter. Special items amounted to negative €18m (Q1 FY 2024: positive €1,670m, in connection with disposals). Siemens Energy’s Profit came in at €463m (Q1 FY 2024: €1,878m).
- Net income was €252m (Q1 FY 2024: €1,582m). Corresponding basic earnings per share were €0.23 (Q1 FY 2024: €1.79).
- Free cash flow pre-tax was materially stronger than expected at a positive €1,528m (Q1 FY 2024: negative €283m) driven by project advance payments and timing effects of customer payments. All segments contributed to the improvement.
- Based on the development in the first quarter, management now expects that Siemens Energy will exceed the current free cash flow pre-tax guidance of up to €1bn and therefore intends to update the free cash flow pre-tax outlook for fiscal year 2025 with the half-year results for fiscal year 2025.
“Our strong first quarter reflects the market opportunities arising from the increasing demand for electricity. The strong cash flow was mainly driven by growth across all our businesses, advance payments, and timing effects. Our focus lies still on profitable topline growth and technological leadership”, says Christian Bruch, President and CEO of Siemens Energy AG.
Outlook
Siemens Energy anticipates favorable market conditions in the fiscal year 2025, driven by rising electricity consumption, replacement investments, and the energy transition. Investments in energy infrastructure are expected to support all business segments. Siemens Gamesa continues efforts to achieve break-even by fiscal year 2026 and aims to resume sales of the 5X onshore turbine in 2025.
The company expects comparable revenue growth of 8% to 10% and a profit margin before special items between 3% and 5%. Net income is projected to be around break-even, excluding anticipated positive special items from the Siemens Limited, India demerger. Following strong first-quarter performance, Siemens Energy now expects to exceed its prior free cash flow pre-tax guidance of up to €1 billion, with an updated outlook to be provided in the half-year results.
The outlook does not account for potential charges related to legal and regulatory matters.
Overall assumptions per business area
- Gas Services assumes a comparable revenue growth of 7% to 9% and a profit margin before special items of 10% to 12%.
- Grid Technologies plans to achieve a comparable revenue growth of 23% to 25% and a profit margin before special items between 10% and 12%.
- Transformation of Industry expects a comparable revenue growth of 11% to 13% and a profit margin before special items of 8% to 10%.
- Siemens Gamesa assumes a comparable revenue growth of negative 9% to negative 5% and a negative profit before special items of around €1.3bn.
