MUNICH, Germany — Siemens Energy has announced its results for the second quarter of fiscal year 2024that ended March 31, 2024.
Siemens Energy benefits from positive market environment and delivers another solid quarter. Adjusted outlook reflects stronger growth and positive cash development.
“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”, says Christian Bruch, President and CEO of Siemens Energy AG.
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 growth at Grid Technologies and Transformation of Industry, respectively.
Siemens Energy’s profit before special items sharply increasedto€170m(Q2FY2023:€41m)in part benefiting from positive currency effects. Special items amounted to positive €331m (Q2FY2023: 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 (Q2FY2023: €64m).
Siemens Energy reporteda Net incomeof €108m (Q2FY2023: Net loss€189m). Corresponding basic earnings per share (EPS) werepositive€0.08(Q2FY2023: negative€0.25).
Free cash flow pre tax was positivewith €483m(Q2FY2023: 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.
- Orders were below prior year’s high basis driven by expected decreases at Siemens Gamesa due to a sharply lower volume from large orders and Gas Services primarily due to a high basis of comparison.
- Book-to-bill ratio came in at 1.14. Order backlog once again exceeded the previous record level and rose to €119bn.
- Revenue increased moderately. Growth at Transformation of Industry and especially Grid Technologies more than offset the declines at Gas Services and Siemens Gamesa.
- Increase in service revenue exceeded growth in the new unit business.
- Profit before Special items and the corresponding margin sharply improved mainly driven by Grid Technologies and Gas Services in part benefiting from positive currency effects.
- Special items included the pre-tax gain from disposals and accelerated portfolio transformation.
- Strong improvement of Free cash flow pre-tax with the highest contribution from Gas Services mainly due to the development of operating networking capital.
Read the full financial report here.
Tagged with financial, Siemens, Siemens Energy