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Press Release12 December 2024Siemens AGZug, Switzerland
Siemens Smart Infrastructure sets higher ambitions to drive next level of value creation
SI exceeded its previous mid-term targets, achieving 11
percent CAGR for revenue growth in the period fiscal 2020-2024. Its record 17.3 percent profit
margin in fiscal 2024 was well above the targeted 11-16 percent profit
margin over the cycle. During
the past four years, SI has more than doubled its digital business revenue to €1.7
billion, exceeding the €1.5 billion target it had announced back in 2021, one
year ahead of time. The business has also been a strong contributor to support
Siemens meet and exceed ambitious sustainability targets.
For fiscal
2025, SI is targeting a major advance towards its upgraded commitments, aiming
for revenue growth of 6-9 percent and a profit margin range of 17-18 percent. The
strong position it holds today will enable the business to continue capitalizing
on growth drivers resulting from global megatrends, including electrification,
decarbonization, resource efficiency, data and AI, resilience and people
centricity – all recognized as drivers of the digital and sustainability transitions.
With a clear commitment to supporting customers’ decarbonization goals, SI
helped them avoid 44 million tons of CO2 emissions in fiscal 2024 alone.
“We set
ambitious commitments and we delivered. Now, we’re raising the bar again with new
targets to unlock the next level of value creation,” said Matthias Rebellius, member
of the Managing Board of Siemens AG and CEO of Smart Infrastructure. “As a
global technology leader in this rapidly evolving market, our Smart
Infrastructure business is in a sweet spot, strategically positioned to
capitalize on growth drivers. We help customers across a broad range of industries
and geographies to increase their efficiency so they can operate both
profitably and sustainably and reach their own financial targets in a
competitive environment.”
Commenting on SI’s achievements, Siemens AG’s Chief Financial Officer
Ralf P. Thomas said: “Over the past years, Smart Infrastructure impressively
demonstrated how successful a well-prepared and consistently executed
transformation can be. The business operated exceptionally well across all
metrics in a dynamically growing market. SI has been and will continue to be a key pillar of Siemens’
overall success. With the medium-term targets announced today, we are
confident that SI will continue to drive
strong revenue growth, margin expansion and cash generation – not only for SI,
but also for Siemens as a whole.”
Next chapter: Building on success to create value, expand digital portfolio
For its next
phase, SI will carry on investing in its broad-based global presence, implementing
a local-for-local strategy and capacity expansion, while nurturing in-country
talent in its stronghold markets such as the United States and India. These
investments will deliver scalable results in established end markets, such as data
centers, healthcare and power utilities, to continue to grow faster than
the market. It will seek to
maintain a resilient and versatile business mix by expanding its digital and
service business and concentrating on high margin, data-driven products to
increase recurring revenue.
The business will continue to expand its digital and service focus.
Its digital revenue increase is not only attributed to software, but also to remote
and data-driven services – key drivers of profitability. Since 2021, it has
successfully shifted its business mix towards more margin accretive products
and a higher share of standardized systems and solutions.
SI is
strengthening its technological leadership across Buildings, Electrification
and Electrical Products by integrating cutting-edge innovations into the Siemens
Xcelerator portfolio. Siemens Xcelerator, the company’s open digital business
platform, combines SI’s offerings with the competences of partners and
developers for the benefit of customers. So far, the business has introduced
three distinct umbrella portfolio categories to the platform: Building X,
Electrification X and Gridscale X. All three have contributed to a revenue
increase of above 20 percent in SI’s digital portfolio during the last year. SI
will continue to expand its portfolio of repeatable and scalable products for
cross-market implementation, while focusing on high-growth markets such as data
centers.
In fiscal 2024,
SI exceeded its order intake expectations for data center business with a
growth rate of around 60 percent, realizing more than €3.6 billion in orders, boosting revenue growth above 50 percent to more
than €2 billion. The business enjoys
longstanding relationships with all major tier-1 hyperscaler operators in the
already booming data center business, fueled by the rise of AI. Its expertise,
investments in scaling capacity to support customers, and constant, reliable delivery
have persistently paid off.
SI’s
addressable market continues to expand, growing 5-6 percent in the mid-term,
and is forecast to reach more than €300 billion by 2029, from €185 billion in
2020. The business achieved above market growth across all business areas, propelled
by excellent execution on exponential demand for Electrification and Electrical
Products. The Electrification business is currently the market leader in medium
voltage switchgear, Protection & Automation IEC, Grid Planning, and Meter
Data Management. The Electrical Products business has jumped from fourth to
second place in the market. The Buildings business unit has the largest service
business within Siemens and is leading in digital services for smart buildings,
with 140,000 connected building management systems.
Innovation and M&A
Innovation and
sustainability are at the heart of SI’s strategy. Its groundbreaking products that
support the electrification of everything include the IoT-connected SENTRON ECPD, the world’s
fastest electronic circuit protection device, which requires up to 90 percent
less material –– and the environmentally-friendly, F-gas-free blueGIS portfolio
for medium voltage power supply, launched ahead of regulations in Europe. For
buildings operators, examples include the Wireless Plug and Play Automation
Bundle that works with Building X to reduce labor and energy costs, as well as
Connect Box, which enables more efficient management of small and medium-sized
buildings.
SI has bolstered
its portfolio with strategic acquisitions, including C&S Electric in 2021
to address India's growing power needs, Brightly Software in 2022 to enhance
digital building operations, and Trayer Engineering and Danfoss Fire Safety in
2024 to boost grid resilience and fire safety innovation. These investments
highlight SI’s commitment to driving growth and innovation in fast-growing
markets.
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Siemens Smart Infrastructure (SI) is shaping the market for intelligent, adaptive infrastructure for today and the future. It addresses the pressing challenges of urbanization and climate change by connecting energy systems, buildings, and industries. SI provides customers with a comprehensive end-to-end portfolio from a single source – with products, systems, solutions, and services from the point of power generation all the way to consumption. With an increasingly digitalized ecosystem, it helps customers thrive and communities progress while contributing toward protecting the planet. Siemens Smart Infrastructure has its global headquarters in Zug, Switzerland. As of September 30, 2024, the business had around 78,500 employees worldwide.
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 (
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