Robust Q1 Performance - Siemens Energy Experiences Growth and Profitability - Siemens Energy experiences significant growth and upward trajectory during the given quarter.
Title: Siemens Energy Roars Ahead: A Record-Breaking Quarter and Onward to Success
This article talks about Siemens Energy's smashing quarterly performance, setting new records, and marches confidently towards a profitable future.
Siemens Energy, shrugging off the dust of the past crises, is rocketing towards a commendable year. After a blistering Q2, CEO Christian Bruch calls it the most successful quarter since the company's independence. This quarter, the energy colossus amassed a colossal €501 million in net profit, a whopping 400% increase over the previous year's quarter. Although Siemens Gamesa weighs the numbers down, other sectors have been firing on all cylinders, causing Energy to significantly boost its forecast. Even U.S. tariffs, while annoying, are manageable.
"Nagging but endurable" - That's how the Energy CEO describes the anticipated impact of the tariffs. The estimated burden for the remaining two quarters of the fiscal year hovers around a high double-digit million euro figure. Compared to the burdens recently mentioned by German automakers, this is small potatoes. These unfortunate effects are more than offset by the recent powerful performance.
Booming orders
This powerful performance can be seen clearly in the second quarter's revenue and order intake. Revenue increased by about one-fifth to nearly €10 billion, and order intake was €14.4 billion, not only significantly higher but also grew by more than half.
Bruch speaks of an order boom. "The increasing demand for power," according to Bruch, played a role here. Recently, he raised the forecast, raising it from a near break-even point to a potential €1 billion in profit. "Our elevated confidence stems from the continuing market opportunities as well as our outstanding project execution," says Bruch.
In the past, problems with individual projects, particularly at Gamesa, weighed down the whole company's numbers. Now, Energy is optimistic that it's got these problems well in hand.
Siemens Gamesa still grapples
Still, the problems at Gamesa aren't entirely over yet. In the second quarter, the subsidiary recorded a significant loss in its segment, which was outshone by impressive numbers in the turbine and maintenance business, as well as power grid technology. While Gamesa wrestles with problems with two crucial onshore wind turbine types, it is expected to reach the break-even point next year. If the performance in other areas continues with the same vigor, Energy just might set new heights in its results.
First, however, the company must deliver on its current forecast. If it succeeds, it wouldn't be the first annual profit since the Siemens spin-off in autumn 2020 - there was one last year. But this time, it would be a self-made achievement.
No dividend this year
Shareholders, however, won't receive a dividend for the current fiscal year. Bruch explains that the reason is the state guarantees that the company received two years ago to secure its full order book. Although the company sees itself on track to phase out these guarantees during the course of the fiscal year, as CFO Maria Ferraro explains, even then, Energy will only be able to pay a dividend based on the earnings generated in the following year, which could reach shareholders as early as 2027.
Still, shareholders had reasons to celebrate on Thursday - Siemens Energy was one of the biggest winners on the stock exchange in the morning.
- Siemens Energy
- Siemens Gamesa Renewable Energy
- Christian Bruch
- Munich
- Siemens AG
- CEO
- Siemens Energy continues to surge forward, outpacing past crises, with CEO Christian Bruch declaring the most successful quarter since the company's independence.
- In a positive development, Siemens Energy's energy sector, despite being weighed down by Siemens Gamesa, has shown promising growth, boosting the company's fiscal forecast.
- For the current fiscal year, despite a record-breaking performance, Siemens Energy will not be issuing a dividend to shareholders due to the existing state guarantees. However, this decision does not deter shareholders, as Siemens Energy remained one of the top performers on the stock exchange.
