Siemens Energy recently shared promising news in their second quarter earnings report, forecasting a notable revenue growth of 13-15% for fiscal year 2025 (FY25) due to robust order momentum. In Q2, the company saw a substantial 20.7% increase in revenue to €10bn on a comparable basis. Orders also surged by an impressive 52.3% to €14.4bn, excluding currency translation and portfolio effects.
The growth was seen across all segments, with Grid Technologies and Gas Services standing out, the latter achieving a record high in quarterly orders. Siemens Energy’s book-to-bill ratio remained strong at 1.45, contributing to a record order backlog of €133bn.
Profit before special items soared to €906m, a significant rise from €170m in the same quarter of the previous fiscal year, resulting in a profit margin of 9.1%. Despite negative special items of €291m, mainly due to the sale of its Indian wind business, Siemens Energy’s profit increased to €615m. Net income also saw an uptick to €501m, with basic earnings per share at €0.50. Free cash flow pre-tax improved dramatically to €1.39bn, driven by contributions from various segments and customer payments.
Siemens Energy’s President and CEO, Christian Bruch, expressed optimism about the company’s outlook, attributing the strong performance to the rising demand for electricity and excellent project execution. Looking ahead to FY25, the company anticipates a profit margin before special items ranging between 4% and 6%, with net income expected to reach up to €1bn. The forecast for free cash flow pre-tax has been revised to approximately €4bn.
Despite recent tariff announcements by the US Government, Siemens Energy expects limited direct impact on its profit in the second half of FY2025, estimating potential mitigation measures to result in a high double-digit million euro amount. In a recent development, the company secured a $1.6bn project to supply essential technologies for gas-powered power stations in Saudi Arabia.
The future looks promising for Siemens Energy as they continue to capitalize on market opportunities, focus on profitable growth, and maintain a strong financial performance. This article was originally published by Power Technology, a GlobalData owned brand, and serves as a valuable source of information for industry professionals and stakeholders.
