Earnings Release Q2 FY 2024: Siemens Energy benefits from positive market environment and delivers another solid quarter. Adjusted outlook reflects stronger growth and positive cash development. 

  • During the second quarter of the fiscal year, Siemens Energy’s relevant markets and demand for electricity continued to develop strongly. 
  • As expected, orders decreased year-over-year from a high level of comparison mainly due to a lower volume of large orders. Growth at Grid Technologies and Transformation of Industry could not offset lower orders in the other segments, mainly Siemens Gamesa. Overall, the decline was 21.8% on a comparable basis (excluding currency translation and portfolio effects) and orders came in with €9.5bn. The book-to-bill ratio (ratio of orders to revenue) was again above 1, driving the order backlog to a new high of €119bn. 
  • Revenue grew by 3.7% on a comparable basis to €8.3bn with substantial and significant growth at Grid Technologies and Transformation of Industry, respectively. 
  • Siemens Energy’s Profit before special items sharply increased to €170m (Q2 FY 2023: €41m) in part benefiting from positive currency effects. Special items amounted to positive €331m (Q2 FY 2023: positive €23m), driven by pre-tax gains from the sale of businesses related to the ongoing progress on disposals and accelerated portfolio transformation. As a result, Profit for Siemens Energy came in at €501m (Q2 FY 2023: €64m). 
  • Siemens Energy reported a Net income of €108m (Q2 FY 2023: Net loss €189m). Corresponding basic earnings per share (EPS) were positive €0.08 (Q2 FY 2023: negative €0.25). 
  • Free cash flow pre tax was positive with €483m (Q2 FY 2023: negative €294m). The improvement to prior-year quarter was primarily due to strong cash conversion across all business areas and shifts in timing from Siemens Gamesa. 
  • Due to the strong business performance in the first half-year, Siemens Energy raised its outlook for fiscal year 2024. Management now expects for the Siemens Energy Group a comparable revenue growth between 10% and 12% (previously between 3% and 7%) and a Profit margin before special items between negative 1% and positive 1% (previously between negative 2% and positive 1%). Free cash flow pre tax is now expected to be up to positive €1.0bn (previously around negative €1.0bn). The outlook for Siemens Energy’s Net income remains unchanged at up to €1bn.

Christian Bruch, President and CEO of Siemens Energy AG:

“Our strong development in the second quarter underscores the continued strong demand for our technology to power the energy transition and our success in stabilizing the wind business. We have raised our outlook to reflect this positive development. The turnaround of our wind business is still our focus. To this end, we are taking steps to reduce complexity and create a more focused business.”

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