Siemens (SIE) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 delivered 3% revenue growth to €18.4 billion, with a record €118 billion backlog and a book-to-bill ratio of 1.09, despite an 8% year-over-year decline in orders due to fewer large contracts and a high prior-year Mobility base.

• Net income surged 52% to €3.9 billion, driven by a €2.1 billion after-tax gain from the Innomotics divestment, which generated €3.1 billion in proceeds.

• Free cash flow was strong at €1.6 billion, supported by operational performance and divestiture proceeds.

• Sustainability progress included a 60% reduction in CO2 emissions since 2019 and offerings sold in 2024 to avoid 144 million tons of emissions.

• Altair acquisition is progressing, with regulatory clearances and shareholder approval obtained.

Financial highlights

• Orders: €20.1 billion, down 7–8% year-over-year; revenue: €18.4 billion, up 3%.

• Industrial business profit: €2.5 billion; margin at 14.1%; EPS pre-PPA: €2.22 (excluding Innomotics gain).

• Net income: €3.9 billion (+52%); basic EPS: €4.71 (+56%); EPS pre-PPA: €4.86 (+52%).

• Free cash flow: €1.6 billion (+51%); Industrial Business free cash flow: €1.7 billion.

• Innomotics divestment generated a €2.1 billion gain, recorded in discontinued operations.

Outlook and guidance

• FY2025 outlook confirmed: comparable revenue growth of 3–7%, book-to-bill above 1, EPS pre-PPA (excluding Innomotics) €10.40–€11.00.

• Digital Industries: revenue change (6)% to +1%, margin 15–19%.

• Smart Infrastructure: revenue growth 6–9%, margin 17–18%.

• Mobility: revenue growth 8–10%, margin 8–10%.

• Siemens Healthineers expects FY2025 revenue growth of 5–6% and adjusted EPS of €2.35–2.50.