MUNICH, Germany — Siemens Energy today announced its results for the first quarter of fiscal year 2024 that ended December 31, 2023.
“The solid first quarter is encouraging, in part also due to project shifts, which are normal in plant engineering, especially with the market dynamics we are currently seeing. That is why our focus remains on solving the quality problems in our onshore wind business and making the most of the growth potential for the rest of the company,” said Christian Bruch, President and Chief Executive Officer of Siemens Energy AG.
- Siemens Energy’s business development in the first quarter of the fiscal year was supported by continued favorable energy market trends. With a strong order development, in particular Grid Technologies and Transformation of Industry were able to take advantage of these favorable conditions leading to the highest orders in a quarter to date.
- For the full fiscal year, Siemens Energy confirms its previously communicated outlook.
- Orders increased year-over-year by 23.9% on a comparable basis (excluding currency translation and portfolio effects) to €15.4bn. The book-to bill ratio (ratio of orders to revenue) was slightly above 2, driving the order backlog to a new high of €118bn.
- Revenue came in at €7.6bn reflecting a 12.6% increase on a comparable basis. While all segments contributed to growth, the increase was particularly strong at Grid Technologies.
- Siemens Energy’s Profit before special items sharply improved to positive €208m. Prior year quarter’s result came in, burdened by quality related charges at Siemens Gamesa, at negative €282m. Special items amounted to positive €1,670m (Q1 FY 2023: negative €103m), driven by a pre tax gain related to the sale of an 18 percent stake in Siemens Limited, India, of €1,729m. As a result, Profit for Siemens Energy came in at positive €1,878m (Q1 FY 2023: negative €384m).
- Due to the special items, Siemens Energy showed a Net income of €1,582m (Q1 FY 2023: Net loss €598m). Corresponding basic earnings per share (EPS) were positive €1.79 (Q1 FY 2023: negative €0.60).
- Free cash flow pre tax was negative with €283m (Q1 FY 2023: negative €58m). The decrease was primarily due to Siemens Gamesa, which suffered a high cash outflow due to a loss and a build-up of operating net working capital in a seasonal weak quarter. Related to the sale of the stake in Siemens Limited, India, Siemens Energy recorded a cash inflow of nearly €2.1bn which is not reflected in Free cash flow pre tax however contributing to Adjusted Net cash
Outlook
We confirm our outlook for fiscal year 2024. We expect for Siemens Energy a comparable revenue growth (excluding currency translation and portfolio effects) in a range of 3 % to 7 % and a Profit margin before special items between negative 2 % and positive 1 %. Furthermore, we expect a Net income of up to €1bn including impacts from disposals and the acceleration of the portfolio transformation. We assume a negative Free cash flow pre tax of around €1.0bn. In addition, we expect proceeds in a range of positive €2.5bn to €3.0bn from disposals and the acceleration of the portfolio transformation. 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 4 % to 0 % and a Profit margin before special items of 9 % to 11 %.
- Grid Technologies plans to achieve a comparable revenue growth of 18 % to 22 % and a Profit margin before special items between 7 % and 9 %.
- Transformation of Industry expects a comparable revenue growth of 8 % to 12 % and a Profit margin before special items of 5 % to 7 %.
- Siemens Gamesa assumes a comparable revenue growth of 0 % to positive 4 % and a negative Profit before special items of around €2bn.