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Siemens Energy has reported impressive results for the second quarter of fiscal year 2025, surpassing market expectations. Due to the positive performance, the company has revised its fiscal year 2025 outlook. Siemens Energy will release its full earnings for Q2 FY2025 on May 8, 2025.
Outlook for FY2025
Siemens Energy now anticipates comparable revenue growth (excluding currency fluctuations and portfolio impacts) in the range of 13% to 15% for fiscal year 2025, up from the earlier forecast of 8% to 10%. The company expects its profit margin before special items to be between 4% and 6%, a significant improvement from the previous range of 3% to 5%. Siemens Energy projects net income of up to €1 billion (previously expected to be around break-even), excluding positive special items following the demerger of the energy business from Siemens Limited in India. The outlook for free cash flow before tax has been revised to approximately €4 billion for FY2025.
Overall Assumptions per Business Area
- Gas Services is now projecting revenue growth of 11% to 13% (previously 7% to 9%), with a profit margin before special items of 11% to 13% (previously 10% to 12%).
- Grid Technologies expects revenue growth of 24% to 26%, up from the previous forecast of 23% to 25%, and a profit margin before special items of 14% to 16% (previously 10% to 12%).
- Transformation of Industry anticipates revenue growth of 13% to 15% (previously 11% to 13%) with a profit margin before special items of 9% to 11% (previously 8% to 10%).
- Siemens Gamesa expects modest revenue growth of 0% to 2%, improving from the earlier forecast of a 9% to 5% decline, but the company still projects a negative profit before special items of approximately €1.3 billion.
The updated outlook excludes any charges related to legal or regulatory issues. Siemens Energy will provide a further update on mid-term targets with the fourth-quarter FY2025 results.
Preliminary Results for Q2 FY2025
- Siemens Energy reported €14.43 billion in orders, a 52.3% increase from Q2 FY2024, significantly exceeding the consensus estimate of €12.49 billion. Revenue rose by 20.7% to €9.96 billion, surpassing the consensus of €9.32 billion. Profit, which includes a loss from the disposal of a majority stake in Siemens Gamesa’s Indian wind business, reached €615 million, up from €501 million in Q2 FY2024. Profit before special items totaled €906 million, reflecting a margin of 9.1%, compared to 2.1% in Q2 FY2024. Free cash flow before tax stood at €1.39 billion, up from €483 million in Q2 FY2024.
- Gas Services saw a massive increase in orders, up 102.1% to €7.04 billion, surpassing the consensus estimate of €5.29 billion. Revenue grew by 18.7% to €3.16 billion, above the consensus of €2.95 billion. Profit before special items was €511 million, with a margin of 16.1%, up from 14.4% in Q2 FY2024. Free cash flow before tax reached €1.00 billion, compared to €512 million in Q2 FY2024.
- Grid Technologies recorded orders of €5.21 billion, a 41.6% increase compared to Q2 FY2024, exceeding the consensus estimate of €5.10 billion. Revenue rose by 33.7% to €2.86 billion, beating the consensus of €2.73 billion. Profit before special items was €571 million, reflecting a margin of 19.9%, compared to 11.4% in Q2 FY2024. Free cash flow before tax was €633 million, up from €479 million in Q2 FY2024.
- Transformation of Industry reported orders of €1.56 billion, a 1.5% decrease from Q2 FY2024 but still higher than the consensus estimate of €1.50 billion. Revenue grew by 10.5% to €1.41 billion, in line with consensus. Profit before special items was €155 million, with a margin of 11.0%, up from 6.2% in Q2 FY2024. Free cash flow before tax was €145 million, slightly down from €146 million in Q2 FY2024.
- Siemens Gamesa saw orders fall by 1.0% to €875 million, slightly better than the consensus estimate of €782 million. Revenue increased by 16.2% to €2.71 billion, surpassing the consensus of €2.38 billion. Profit before special items remained negative at €249 million, an improvement from the €446 million loss in Q2 FY2024 but still worse than the consensus estimate of a €342 million loss. Free cash flow before tax was negative €333 million, improving from the negative €553 million in Q2 FY2024.
