Siemens delivers strong second quarter performance, confirms annual earnings guidance

Siemens' new orders in Q2 of fiscal year 2025 increased by 9% on a comparable basis, reaching €21.6 billion (Q2 of fiscal year 2024: €19.7 billion).

Revenue increased by 6% on a comparable basis to €19.8 billion (Q2 2024: €18.5 billion).

Industrial Businesses saw a profit of 3.2 billion euros, a 29% increase from the same period last year (Q2 2024: 2.5 billion euros), primarily due to the 300 million euros in gains from the sale of the residential electrical business of the Smart Infrastructure Group.

・The profit margin for physical business is 16.9% (Q2 2024: 14.0%)

The Group's free cash flow reached €1 billion (€1.3 billion in Q2 of fiscal year 2024).

Net profit increased by 11% to €2.4 billion, significantly surpassing the same period last year (Q2 2024: €2 billion).

Siemens' "ONE Tech Company" aims for robust growth through strategic acquisitions: expanding technological capabilities with the acquisition of Altair and Dotmatics to strengthen the foundation for future growth.

Siemens continues its strong growth momentum in the second fiscal quarter of 2025 (ending March 31, 2025), with nearly all key performance indicators showing significant increases. Amidst a backdrop of business expansion and despite heightened economic uncertainty, the company affirms its performance guidance for the fiscal year 2025.

We have once again delivered strong quarterly results, with significant growth in new orders, revenue, and net profits. Our clients continue to trust our technology, and our global footprint demonstrates our robust resilience. "Through the 'ONE Tech Company' initiative, we are aggressively expanding into cutting-edge technologies," said Roland Busch, Chairman, President, and CEO of Siemens AG. "The completed acquisition of Altair and the ongoing acquisition of Dotmatics will bring our clients new AI solutions and uncover new opportunities in growth markets such as life sciences."

"By strictly adhering to our guidelines, we have once again successfully transformed significant revenue growth into robust profits and stable free cash flow. We have efficiently and smoothly completed the acquisition of Altair before the end of this quarter. We also confirm our financial guidance for the fiscal year 2025," adds Ralf P. Thomas, Chief Financial Officer of Siemens AG.

Order volume and revenue show significant growth

In the second quarter of fiscal year 2025, excluding the impact of currency fluctuations and business mix, Siemens' revenue increased by 6% on a comparable basis, reaching €19.8 billion (second quarter of fiscal year 2024: €18.5 billion). New orders increased by 9% on a comparable basis, reaching €21.6 billion (second quarter of fiscal year 2024: €19.7 billion). The order book-to-bill ratio was robust at 1.10. As of the end of the second quarter of fiscal year 2025, the total value of high-quality order backlog reached €117 billion.

Physical business profits surged nearly one-third to €3.2 billion (Q2 2024: €2.5 billion), thanks to exceptional operational capabilities and €300 million in gains from the sale of the residential electrical business of the Smart Infrastructure Group. The profit margin for the physical business was 16.9% (Q2 2024: 14.0%).

Net profit increased by 11% to €2.4 billion (second quarter of fiscal year 2024: €2.2 billion), mainly due to an increase in profit from our core business. On a pro forma basis, excluding acquisition price amortization, basic earnings per share were €3.00, up 10% from the same period last year (second quarter of fiscal year 2024: €2.73).

Siemens' free cash flow from continuing operations and non-continuing operations amounts to €1 billion (Q2 2024: €1.3 billion). The free cash flow from the core business was €2.1 billion, in line with the prior year's quarter, primarily driven by the Smart Infrastructure Division.

Intelligent Infrastructure Group and Siemens Mobility see an increase in profitability

Digital Industrial Group's new order intake remained flat year-on-year at €4.3 billion (Q2 2024: €4.3 billion). The new orders in the automation business saw a significant increase due to rising demand in China, primarily as the high inventory levels of customers were largely depleted by the end of the quarter. In contrast, automation orders in the German market saw a sharp decline, and new orders for Electronic Design Automation (EDA) software business were also as expected, below the strong levels of the same period last year. Revenue decreased slightly by 5% to €4.3 billion (Q2 2024: €4.5 billion). Among them, the revenue decline in the automation business was much less than in the previous quarters. In the software sector, although the Product Lifecycle Management (PLM) software business achieved growth, it failed to offset the significant decline in the EDA business, which was on a stronger base last year. The total profit was €634 million (Q2 2024: €741 million), with a profit margin of 14.8% (Q2 2024: 16.5%), primarily due to the decline in EDA business revenue and €27 million in related expenses incurred for completing the Altair acquisition.

The Smart Infrastructure Group has secured new orders totaling €6 billion, slightly below the robust level of the same period last year (Q2 2024: €6.1 billion), with last year's figure reflecting a surge in contracts from data center clients. All business lines and regions within the Group saw revenue growth, up 10% on a comparable basis to €5.7 billion (Q2 2024: €5.1 billion), with the electrification business contributing the most, mainly due to the strong execution of a large number of reserved orders from data center and energy clients. Driven by revenue growth, increased capacity, and ongoing productivity improvements, the Smart Infrastructure Group's profits and profitability have maintained year-on-year growth. Profits surged by 61% to €1.4 billion (Q2 2024: €854 million), with the profit margin increasing by over 7 percentage points to 24.0% (Q2 2024: 16.6%), with both profits and profitability benefiting from the €315 million gain from the sale of the home electrical business.

Siemens Mobility secures new orders totaling €3.9 billion, a 22% increase on a comparable basis (€3.2 billion in Q2 2024), mainly driven by a series of large orders, including significant contracts won in Europe and America, such as dual-mode and battery-powered locomotive orders to be delivered in the U.S., totaling €600 million. Revenue at Siemens Mobility grows by 12% on a comparable basis to €3.2 billion (€2.8 billion in Q2 2024), with all business segments showing growth, particularly the rolling stock and customer service segments. Profit increases by 23% to €290 million (€237 million in Q2 2024), primarily due to improvements across nearly all business segments, with a significant contribution from the customer service segment. The corresponding profit margin rises to 9.1% (8.4% in Q2 2024).