Siemens (SIE) Q3 2024 (Media) earnings summary

Executive summary

• Q3 FY 2024 delivered profitable growth, with revenue up 5% year-over-year to €18.9 billion and a book-to-bill ratio of 1.05, led by Smart Infrastructure and Siemens Healthineers.

• Profit from industrial business exceeded €6.3 billion, with a margin expansion of 110 basis points compared to Q3 2023; net income increased 48% year-over-year to €2.1 billion.

• Free cash flow in industrial business was €2.5 billion, with €2.1 billion "all in" including discontinued operations.

• Earnings per share before purchase price allocation reached €2.66, up 49% year-over-year.

• Full-year guidance confirmed, with continued focus on cash generation and transformation initiatives.

Financial highlights

• Group revenue rose 5% year-over-year to €18.9 billion, driven by Smart Infrastructure (+10%) and Siemens Healthineers (+4%).

• Orders at €19.8 billion, down 15% year-over-year due to tough comparison with last year's record Mobility orders.

• Smart Infrastructure electrification business grew 21%; software revenue in Digital Industries surged 82%.

• Digital Industries automation revenue declined 25% year-over-year, while software business offset with strong license wins.

• Smart Infrastructure operating profit margin reached a record 17%.

Outlook and guidance

• Group outlook for fiscal 2024 confirmed: comparable revenue growth expected at the lower end of 4%-8% range, book-to-bill ratio above 1.

• Digital Industries revenue expected to be 8%-4% below prior year; profit margin at lower end of 18%-21% range.

• Smart Infrastructure guidance: 8%-10% revenue growth, profit margin at upper end of 16%-17%.

• Mobility guidance: 8%-11% revenue growth, profit margin 8%-10%.

• Basic EPS from net income before PPA expected at €10.40-€11 for fiscal 2024.