MUNICH, Germany — Siemens Energy today announced its results for the third quarter of fiscal year 2024 that ended June 30, 2024.
“The rapidly growing electricity market requires a wide range of our products. Especially our grid and gas turbine businesses are benefiting from this momentum. Importantly, with growing our order backlog, we have been able to improve its margin quality as well. Despite all the challenges, we are optimistic about the future and after the first nine months, we are well on track to meet our full-year guidance,” says Christian Bruch, President and CEO of Siemens Energy AG.
- During the third quarter of the fiscal year, Siemens Energy continued to benefit from the energy transition, with record order intake at Gas Services and record order backlog in both Gas Services and Grid Technologies.
- Gas Services’ orders more than doubled year-over-year, orders of Siemens Energy overall decreased from a high level of comparison, mainly at Siemens Gamesa, and due to timing shifts at Grid Technologies. The decline was 29.6% on a comparable basis (excluding currency translation and portfolio effects) and orders came in with €10.4bn. The book-to-bill ratio (ratio of orders to revenue) remained above 1, driving the order backlog to another record high of €120bn.
- Revenue grew by 18.5% on a comparable basis to €8.8bn with substantial growth at Grid Technologies, Transformation of Industry and Siemens Gamesa.
- Siemens Energy’s Profit before Special items again was positive with €49m (Q3 FY 2023: negative €2,048m). Prior-year’s quarter was heavily burdened by quality issues in Siemens Gamesa’s onshore business as well as increased product costs and ramp-up challenges in the offshore business. Special items were positive €69m (Q3 FY 2023: negative €41m) primarily related to the ongoing progress on disposals and the accelerated portfolio transformation. Profit for Siemens Energy came in at positive €119m (Q3 FY 2023: negative €2,089m).
- Siemens Energy reported a Net loss of €102m (Q3 FY 2023: €2,931m). Corresponding basic earnings per share (EPS) were negative €0.16 (Q3 FY 2023: negative €3.42).
- Free cash flow pre tax was €727m (Q3 FY 2023: €27m) with positive contributions by all segments except Siemens Gamesa which continued to be negative, as expected.
- Due to the good development in the first nine months, we now expect a positive Free cash flow pre tax in a range of €1.0bn to €1.5bn for the fiscal year (previously up to €1.0bn).
Outlook
We continue to expect Siemens Energy to achieve a comparable revenue growth (excluding currency translation and portfolio effects) in a range of 10% to 12%. Profit margin before special items is expected between negative 1% and positive 1%. We expect a Net income of up to €1bn including impacts from disposals and the acceleration of the portfolio transformation.
Due to the good development in the first nine months, we now expect a positive Free cash flow pre tax in a range of €1.0bn to €1.5bn (previously up to €1.0bn). We continue to expect proceeds from disposals and the acceleration of the portfolio transformation of around positive €3.0bn. The outlook for Siemens Energy does not include charges related to legal and regulatory matters.
Overall assumptions per business area
- Gas Services assumes a comparable revenue growth of negative 2% to 0% and a Profit margin before special items of 9% to 11%.
- Grid Technologies plans to achieve a comparable revenue growth of 32% to 34% and a Profit margin before special items between 8% and 10%.
- Transformation of Industry expects a comparable revenue growth of 14% to 16% and a Profit margin before special items of 5% to 7%.
- Siemens Gamesa assumes a comparable revenue growth of 10% to 12% and a negative Profit before special items of up to €2.0bn (previously around €2bn).