Siemens Energy demonstrated robust financial performance in the second quarter of fiscal year 2025, surpassing market expectations across multiple metrics and prompting the company to revise its full-year guidance upward.
Siemens Energy has recorded 52.3 percent increase in comparable orders, amounting to €14.433 billion, compared to €9.47 billion in the same quarter of the previous year.
Siemens Energy’s revenue grew 20.7 percent on a comparable basis to €9.962 billion, up from €8.278 billion in Q2 FY2024.
Profit for the quarter reached €615 million, up from €501 million a year ago, and notably ahead of the expected €372 million, despite the impact of a loss related to the disposal of the majority stake in the Siemens Gamesa Indian wind business.
This strong quarterly performance has led Siemens Energy to upgrade its full-year outlook for fiscal 2025. Siemens Energy now expects group-level comparable revenue growth in the range of 13 percent to 15 percent, compared to the previous forecast of 8 percent to 10 percent.
The anticipated profit margin before special items has also been revised upward to between 4 percent and 6 percent, from the earlier range of 3 percent to 5 percent. Siemens Energy now expects net income of up to €1 billion, a significant improvement from the prior outlook of around break-even, excluding potential positive special items following the demerger of its energy business from Siemens India.
Siemens Energy business segments
Performance across Siemens Energy’s business segments was mixed but generally strong.
Gas Services delivered an exceptional quarter, with orders doubling to €7,038 million, representing a 102.1 percent increase on a comparable basis, and revenue growing by 18.7 percent to €3,163 million. These figures exceeded both prior-year results and market expectations.
Grid Technologies also performed impressively, achieving 41.6 percent comparable growth in orders to €5,209 million and a 33.7 percent increase in revenue to €2,861 million. The segment’s performance exceeded the consensus estimates and reflects growing demand for energy transmission infrastructure.
Transformation of Industry reported slightly softer results in terms of orders, which declined by 1.5 percent to €1.564 billion, slightly below the prior year. However, revenue increased by 10.5 percent to €1.411 billion. Despite the dip in orders, this segment still reflects healthy underlying demand and progress toward energy transition technologies.
Siemens Gamesa, the wind turbine business units of Siemens Energy, remained the group’s weakest performer, though even this segment showed signs of stabilization. Orders dipped marginally by 1.0 percent to €875 million.
Siemens Gamesa revenue increased by 16.2 percent to €2.706 billion. The profit before special items for Siemens Gamesa remains negative at around €1.3 billion, which is unchanged from earlier guidance, indicating ongoing challenges in the wind energy market.
GreentechLead.com News Desk