Siemens Energy posts €1.3bn profit and raises midterm outlook
Pamela Largue
Posted on: 15 November 2024
Siemens Energy has reported an annual profit of €1.335bn and adjusted its medium term growth targets to between 10% to 12%.
Siemens Energy has completed its 2024 fiscal year, reporting an annual profit of €1.335 billion ($1.4 billion) and adjusting its medium term growth targets to between 10% to 12%, up from the previous 8%.
Christian Bruch, president and CEO of Siemens Energy, described fiscal year 2024 as "decisive".
"We achieved all our goals, driven by strong orders and project execution across all our businesses. Our focus remains on profitable growth, supported by highly favourable market conditions. The new mid-term targets until fiscal year 2028 reflect our leading role in the energy transition.”
According to Siemens Energy's results, the positive growth resulted from strong results across the gas services and grid technologies sides of the business, as well as increased electricity demand.
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The gas services business area saw 28% comparable growth to €16.4 billion ($17.3 billion).
The grid technologies business, driven by global grid expansion efforts, also confirmed major orders as well as several expansions of its manufacturing footprint.
As for Siemens Gamesa, according to Siemens Energy, the business turnaround strategy is continuing with the aim to break even in fiscal year 2026.
For fiscal year 2025, Siemens Energy expects to achieve comparable revenue growth of between 8% to 10% and a profit margin before special items between 3% and 5%.
New mid-term targets for the 2028 fiscal year indicate Siemens Energy expects to achieve a compound annual revenue growth in "a high single-digit to low double-digit percentage range" and a profit margin of between 10% to 12%.
Read more about Siemens Energy’s workforce in transition
Maria Ferraro, CFO of Siemens Energy, says: “We are committed to maintaining a strong balance sheet commensurate with a solid investment grade rating. I am therefore very pleased that in FY24 we were able to deliver robust cash flow and to accelerate our portfolio transformation program to end the year with a strong net cash position, demonstrating Siemens Energy's financial health and resilience. We are now well-positioned to deliver strong growth with rising margins to create sustainable shareholder value."
