Siemens Energy simply released excellent fiscal second quarter financial results. Their consistent growth and ambition for the future are really inspiring! The firm expects net revenue growth of at least 15% for FY25. This growth will be driven by strong demand for clean, more efficient energy solutions, and a record order backlog.
Siemens Energy’s third quarter earnings report, released last week, It’s reporting a stunning 20.7% increase in revenues, to €10 billion on an identical basis. This increase results from a phenomenal 52.3% increase in new orders. They came in a remarkable €14.4 billion above, year-on-year for the same quarter last year. The firm’s book-to-bill ratio stayed healthy at 1.45, continuing to demonstrate its stranglehold on a hot market.
Siemens Energy last month cited a profit of €906 million, excluding special items. This milestone resulted in the company’s first quarterly profit greater than 9.1% margin before special items. Overall profit jumped to €615 million. This leap took place, despite special items being negative at €291 million, predominantly due to the divestment of its Indian wind portfolio.
The firm updated its outlook on pre-tax free cash flow to at least €4 billion. Ironically, the biggest improvement since we last did this inking is the previous estimate. Adjusted free cash flow pre-tax grew nicely as well, soaring 440% to €1.39 billion for the quarter.
Siemens Energy’s net income increased to €501 million. Analysts already predict it might be as high as €1 billion by the end of the fiscal year. Underlying earnings per share were €0.50, a testament to the company’s strength amid a challenging market landscape.
Siemens Energy made a big leap last year, winning their largest offshore project—a $1.6 billion dollar project. They will deliver core technologies to the Rumah 2 and Nairyah 2 gas-fired power plants in Saudi Arabia. This project further signals the company’s desire to build its footprint in global energy markets.
Our business was further shot out of a cannon by the quickly growing demand for electricity. We had a shockingly good quarter and a phenomenal first half of the fiscal year. This upgraded outlook is a result of our faith in continued market opportunities and strong project delivery performance. Despite the macroeconomic unknowns, we’re still looking at profitable growth and less than expected in overall size of our opportunity. – Siemens Energy president and ceo Christian Bruch
Siemens Energy has never been more optimistic about the future. They project their profit before special items for FY25 to continue a 4%-6% margin. Further, the company’s record order backlog has swelled to a staggering €133 billion. That enviable position bodes well for further expansion in the years ahead.