Siemens Energy AG has surpassed market expectations in the second quarter of fiscal year 2025 and subsequently raised its forecast for the current year. This development is of particular interest to investors as it reflects both market dynamics and the performance of a significant DAX company.
Background and Results
- Strong Quarterly Performance: Siemens Energy reported a revenue of €9.962 billion in the second quarter, which represents an increase of 20.7% compared to the previous year. The profit before special items was €906 million, significantly exceeding analysts’ expectations.
- Raised Forecast: Due to these positive developments, Siemens Energy has raised its revenue forecast for the entire year to a growth of 13% to 15%, up from a previous forecast of 8% to 10%. The expected profit margin before special items has also increased, now standing between 4% and 6%.
Cross-Sector Performance
The individual business segments also showed strong performances:
- Gas Services: Here, a revenue growth of about 11% to 13% is expected (previously: 7% to 9%) with a profit margin before special items between 11% and 13%, showing an improvement over earlier projections.
- Grid Technologies: This division plans impressive growth of about 24% to 26%, with the profit margin before special items having improved to a range between previous projections.
- Transformation of Industry: Here, revenue growth is expected to match the overall company’s rate (13% to 15%), while the profit margin has slightly improved.
- Siemens Gamesa: Despite ongoing challenges, only slight growth is expected here (0% to 2%), yet the loss remains high at around -€1.3 billion. However, the loss in the second quarter decreased to approximately €249 million.
Outlook
The raised forecast not only reflects strong operational performance but also a positive market position at a time of increasing demand for energy infrastructure worldwide. Siemens Energy also plans a pre-tax Free Cash Flow of around €4 billion for the entire year, which is significantly above earlier expectations.
These developments are particularly relevant for investors, as they may indicate a stable future outlook for the company.