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Press Release13 February 2025Siemens AGMunich
Promising first quarter generates positive momentum
“With a
promising start to fiscal 2025, we are creating clear momentum for
continued value creation for our stakeholders. Our technologies enable our
customers to combine the real and digital worlds to improve competitiveness,
resilience and sustainability. We see strong traction in bringing real world
impact with our leadership in industrial AI,” said Roland Busch, President
and CEO of Siemens AG.
“With free
cash flow of €1.6 billion, we have significantly exceeded the prior-year
performance and created an excellent foundation for a successful fiscal 2025.
Proceeds of €3.1 billion from the sale of Innomotics further contribute to
our position of financial strength, and we will continue to focus on execution
excellence to create long-term value for our shareholders. For fiscal 2025,
we confirm our outlook,” said Ralf P. Thomas,
Chief Financial Officer of Siemens AG.
Very strong net income and free cash flow
In
Q1 2025, Siemens increased revenue 3 percent on a comparable basis to
€18.4 billion (Q1 2024:
€17.7 billion). Orders totaled €20.1 billion (Q1 2024:
€21.6 billion), an 8 percent decline year-over-year on a comparable
basis. The book-to-bill ratio was a strong 1.09. The order backlog
at the end of Q1 2025 was at the record level of €118 billion.
Profit Industrial Business totaled €2.5 billion, a decline of 8 percent
(Q1 2024: €2.7 billion). The profit margin of the Industrial Business
was 14.1 percent (Q1 2024: 15.8 percent).
Net income soared
52 percent to €3.9 billion (Q1 2024: €2.5 billion), benefiting
from a gain of €2.1 billion (after tax) from the sale of Innomotics. At
€4.86, corresponding basic earnings per share before purchase price allocation
accounting (EPS pre PPA) were 52 percent higher than in the prior-year
quarter (Q1 2024: €3.19). Excluding €2.64 per share related to the sale of
Innomotics, EPS pre PPA totaled €2.22.
Free cash
flow all-in at Group level from continuing and discontinued operations reached
€1.6 billion, an excellent level and a very considerable improvement year-over-year
(Q1 2024: €1.0 billion). This increase was due primarily to the
strong increase to €1.7 billion in free cash flow at the Industrial
Business (Q1 2024: €1.3 billion).
Higher orders at Digital Industries and Smart Infrastructure
Orders at
Digital Industries rose 6 percent
on a comparable basis to €4.2 billion (Q1 2024: €4.0 billion)
due to significant increases in both the software and the automation
businesses. On a geographic basis, orders grew in all reporting regions, led by
the Region Americas. Revenue
declined 11 percent on a comparable basis to €4.1 billion (Q1 2024:
€4.6 billion). Revenue growth at the software business was more than
offset by a significant decline at the automation business. The book-to-bill
ratio at Digital Industries was above 1 for the first time in two years. Profit
declined to €588 million (Q1 2024: €895 million) due to the
automation business, which continued to be impacted by reduced capacity
utilization on lower revenue and, in addition, recorded higher severance
charges. As a result, the profit margin was 14.5 percent (Q1 2024: 19.6 percent).
Orders at
Smart
Infrastructure rose 5 percent on a comparable basis to a record high
of €6.2 billion (Q1 2024: €5.8 billion). All businesses
contributed to this increase, whereby the highest growth contribution came from
the electrification business, which won a number of larger contracts from
datacenters and customers in the energy and industry areas. Revenue also rose
in all businesses to a total of €5.3 billion (Q1 2024: €4.8 billion),
led by the electrification and the electrical products businesses, which executed
strongly on their large order backlogs from datacenters and energy customers. On
a geographic basis, order and revenue growth was driven by the U.S. and Europe.
At €891 million, profit even exceeded that of the strong prior-year
quarter (Q1 2024: €885 million), which
had benefited from a positive effect of €94 million related to past
portfolio activities. This strong profit development was driven by higher
revenue, increased capacity and ongoing productivity improvements.
Revenue at
Mobility rose 10 percent
on a comparable basis to €3.0 billion (Q1 2024: €2.7 billion). All
businesses reported higher revenue, led by the customer services and the rolling
stock businesses. Order intake, which declined to €2.7 billion (Q1 2024: €5.6 billion),
included a €0.5 billion order for rail infrastructure and maintenance in
the UK and a €0.3 billion order under an existing framework agreement for
the delivery of trains in Austria. Q1 2024 had included a sharply higher
volume from major orders. At €249 million, profit was nearly at the level
of the prior-year quarter (Q1 2024: €251 million). A profit increase at
the customer services business was more than offset by a decline at the rolling
stock business, which was due mainly to a less favorable business mix. The profit
margin declined to 8.4 percent (Q1 2024: 9.3 percent).
Virtual Annual Shareholders’ Meeting to vote on dividend proposal
The ordinary
Annual Shareholders’ Meeting of Siemens AG will take place today in a virtual
format immediately following the publication of the company’s Q1 figures. Shareholders
will vote on a proposal by the Managing and Supervisory Boards to distribute a
dividend for fiscal 2024 of €5.20 per share. The proposed dividend is
€0.50 higher than the dividend for fiscal 2023 and a testimony to Siemens’
progressive dividend policy.
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Siemens AG (Berlin and Munich) is a leading technology company focused on industry, infrastructure, mobility, and healthcare. The company’s purpose is to create technology to transform the everyday, for everyone. By combining the real and the digital worlds, Siemens empowers customers to accelerate their digital and sustainability transformations, making factories more efficient, cities more livable, and transportation more sustainable. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a leading global medical technology provider pioneering breakthroughs in healthcare. For everyone. Everywhere. Sustainably.
In fiscal 2024, which ended on September 30, 2024, the Siemens Group generated revenue of €75.9 billion and net income of €9.0 billion. As of September 30, 2024, the company employed around 312,000 people worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.
In fiscal 2024, which ended on September 30, 2024, the Siemens Group generated revenue of €75.9 billion and net income of €9.0 billion. As of September 30, 2024, the company employed around 312,000 people worldwide on the basis of continuing operations. Further information is available on the Internet at www.siemens.com.
Notes and forward-looking statements
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in 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’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and 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 Combined Management Report of the Siemens Report (
www.siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures 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’ net assets and financial positions 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.
Reference Number: HQCOPR202502107094EN