Siemens Energy reported a strong performance in Q2 FY 2025, with significant growth across key financial metrics.
Orders increased by 52.3 percent to €14.4 billion, indicating robust demand. Revenue rose by 20.7 percent to €9.96 billion, driven by strong sales. Profit surged by 22.7 percent to €615 million, while profit before special items (SI) more than tripled, reaching €906 million, reflecting operational improvements and cost management.
The profit margin improved slightly by 0.1 percentage points to 6.2 percent. However, the company incurred €291 million in special items, contrasting with a gain of €331 million in the previous year, highlighting some exceptional costs or adjustments.
Gas Services
Siemens Energy’s Gas Services segment delivered exceptional performance in Q2 FY 2025, driven by robust customer demand. Orders more than doubled, rising by 102.1 percent to €7.04 billion, mainly due to significant new unit orders and strong growth in the service business. All regions reported substantial order growth, with Saudi Arabia, Canada, and Taiwan being the top contributors.
The book-to-bill ratio was 2.22, pushing the order backlog to €52 billion.
Revenue increased by 18.7 percent to €3.16 billion, primarily driven by the service business. Profit surged by 34.7 percent to €508 million, and the profit margin improved by 1.8 percentage points to 16.1 percent, reflecting higher volumes and strong margin quality in the processed order backlog.
Grid Technologies
Siemens Energy’s Grid Technologies segment reported strong growth in Q2 FY 2025, driven by large orders in the solutions business, particularly in Europe. Orders rose by 41.6 percent to €5.21 billion, resulting in a book-to-bill ratio of 1.82 and an increased order backlog of €38 billion.
Revenue climbed by 33.7 percent to €2.86 billion, fueled by higher volumes in both the product and solutions segments. Profit increased by 11.5 percent to €568 million, although the profit margin declined by 3.4 percentage points to 19.9 percent, partly due to the absence of a prior-year gain from the disposal of an equity investment. Despite this, profit before special items more than doubled, driven by operational efficiency, increased volumes, and timing effects of approximately €100 million.
Siemens Gamesa
In Q2 FY 2025, Siemens Gamesa’s orders remained nearly flat compared to the prior year, with a slight decline of 1.0 percent. Offshore orders were limited, with no significant new contracts, while onshore orders continued to be affected by previous sales interruptions for the 4.X and 5.X turbine models.
Revenue increased by 16.2 percent, driven primarily by the ramp-up of new units in the offshore sector. Despite the revenue growth, the unit recorded a substantial loss of €510 million, a 41.5 percent decline from the previous year, mainly due to cost increases associated with the offshore ramp-up and quality issues in the onshore business.
The profit margin deteriorated further to -18.8 percent, impacted by ongoing cost pressures and special items related to the disposal of the Indian wind business. The book-to-bill ratio was 0.32, indicating a significant decline in order intake relative to revenue. The order backlog decreased to €36 billion, reflecting continued market challenges.
Baburajan Kizhakedath