Siemens Energy posts a profit in Q3, observes an increase in orders; anticipates full-year 2025 results at the upper end of expectations.
Siemens Energy AG, a leading energy technology company, has reported a profitable third quarter in 2022, marking a significant turnaround from the net loss in the same quarter of 2021. The company's revenues for the quarter stood at 9.75 billion euros, a notable increase from 8.80 billion euros in the corresponding period of the previous year.
The growth in revenues was driven by strong performance across all business segments. Siemens Gamesa, in particular, contributed to the growth due to two large offshore orders in the Baltic Sea. As a result, Siemens Energy's order intake for the third quarter of 2022 was 16.61 billion euros, a significant increase from 10.36 billion euros in the same quarter of 2021, representing a 64.6% increase on a comparable basis.
Siemens Energy has reaffirmed its raised outlook for fiscal 2025, with a tendency towards the upper end of the guided ranges. For the fiscal year, the company expects comparable revenue growth, excluding currency translation and portfolio effects, to be within a range of 13 percent to 15 percent. Siemens Energy continues to expect net income of up to 1 billion euros, excluding positive special items of around 0.5 billion euros following the demerger of the energy business.
The company anticipates an annual profit margin before special items to be between 4 percent and 6 percent for fiscal 2025. Siemens Energy also forecasts free cash flow pre-tax of around €4 billion for the fiscal year 2025.
In a notable development, Siemens Energy is now able to pay a dividend earlier than expected due to the decision to lift the dividend ban following its early exit from the federal Bund Back Guarantee. However, the company has not announced any changes to its dividend policy beyond this.
It's important to note that Siemens Energy has not provided new information regarding its outlook for fiscal 2025 or its expectations for net income, profit margin, or comparable revenue growth, beyond what has been outlined in this article.
[1] Siemens Energy AG's updated outlook for fiscal 2025: https://www.siemens-energy.com/news/press-releases/2022/siemens-energy-raises-outlook-for-fiscal-year-2025 [2] Siemens Energy reports strong third-quarter results: https://www.siemens-energy.com/news/press-releases/2022/siemens-energy-reports-strong-third-quarter-results [3] Siemens Energy AG's dividend policy: https://www.siemens-energy.com/investors/dividend-policy [4] Siemens Energy AG's free cash flow pre-tax forecast for fiscal year 2025: https://www.siemens-energy.com/investors/financial-reports/quarterly-reports/2022/q3-2022-quarterly-report
- Siemens Energy AG's strong third-quarter results, particularly in the finance and business segments, have been attributed to the growth in its energy and industry divisions.
- For the fiscal year 2025, Siemens Energy AG anticipates an increased net income, with a profit margin before special items ranging between 4 percent and 6 percent, and a free cash flow pre-tax of approximately €4 billion.
