Siemens Energy Reports 2Q 2023 Results

MUNICH, Germany – Siemens Energy announced its results for the second quarter of fiscal year 2023 that ended March 31, 2023.

“Strong orders confirm our very good positioning in the markets for energy transition technologies, such as power generation and transmission. Our adjusted outlook reflects the strong demand, as well as the continuous challenging market environment in the wind industry. The turnaround of the wind business remains the cornerstone of becoming a profitable leader of the energy transition”, says Christian Bruch, President and CEO of Siemens Energy AG.

Highlights:

• Siemens Energy’s markets remained favorable. Consequently, the Company continued to enjoy strong growth in orders and in revenue. Profit continued to be impacted by supply chain challenges, the ramp-up of the offshore activities as well as by effects from onerous projects at Siemens Gamesa.
• Siemens Energy recorded orders of €12.3bn [USD $13.36bn] reflecting 56.3% growth on a comparable basis (excluding currency translation and portfolio effects). The Bookto-bill ratio (ratio of orders to revenue) came in at 1.53 and the order backlog reached a new record of €102.0bn [USD $110.81bn] exceeding the €100bn [USD $108.64bn] mark, for the first time.
• Revenue increased by 23.8% on a comparable basis to €8.0bn [USD $8.69bn] reflecting growth in all segments.
• Siemens Energy’s Profit before Special items was positive with €41m (Q2 FY 2022: negative €49m) [USD $44.54m (Q2 FY 2022: negative USD $53.23m)]. A loss at Siemens Gamesa was more than offset by a strong performance in all other segments, led by Gas Services (GS). Positive Special items of €23m (Q2 FY 2022: negative €54m) [USD $24.99m (Q2 FY 2022: negative USD $58.67m)]were driven by a positive effect of €78m [USD $84.74m] in connection with the “Accelerating Impact” program reported under restructuring costs. Most measures of the program have been executed or contractually solved. Due to improved market conditions and volume growth, the assessment of the further progress of the program has changed. The positive effect more than offset an increase in other restructuring and integration costs. Therefore, Profit for Siemens Energy was positive with €64m (Q2 FY 2022: negative €103m) [USD $69.53m (Q2 FY 2022: negative USD $111.90m)].
• Siemens Energy reported a Net loss of €189m (Q2 FY 2022: Net loss €256m) [USD $205.33m (Q2 FY 2022: Net loss USD $278.12m)]. Corresponding basic earnings per share (EPS) were negative €0.25 (Q2 FY 2022: negative €0.22) [USD negative $0.27 (Q2 FY 2022: negative USD $0.24)].
• As expected, Free cash flow pre tax was negative with €294m (Q2 FY 2022: negative €351m) [USD $319.40 (Q2 FY 2022: negative USD $381.33)]. A higher cash outflow at Siemens Gamesa was partly offset by strong cash flow in other segments, primarily at Grid Technologies (GT).
• Due to the financial performance in the first half-year and business volume growing faster than previously planned, Siemens Energy adjusted its outlook for fiscal year 2023. Management now expects a comparable revenue growth of the Siemens Energy Group between 10% and 12% (previously between 3% and 7%). Profit margin before Special items of Siemens Energy is now expected around the low end of the guidance range of 1% to 3% due to Siemens Gamesa’s poor performance in the first half-year. Accordingly, Net loss of Siemens Energy Group is expected to exceed prior fiscal year’s level by up to a low-triple-digit million € amount.