Siemens (SIE) Q3 2024 (Media) earnings summary

Executive summary

• Q3 2024 delivered profitable growth with revenue up 5% year-over-year to €18.9 billion, driven by strong demand in Smart Infrastructure and industrial software, while automation remained challenging.

• Book-to-bill ratio was 1.05, supported by robust order backlog of €113 billion and strong orders in Smart Infrastructure and Healthineers.

• Net income increased 48% year-over-year to €2.1 billion; profit in the industrial business exceeded €3.0 billion with margin expansion to 16.5%.

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

• Full-year guidance confirmed, with focus on cash generation, investments, and portfolio optimization.

Financial highlights

• Orders at €19.8 billion, down 15% year-over-year; revenue up 5% to €18.9 billion.

• EPS before purchase price allocation was €2.66, up 49% year-over-year.

• Pension deficit reduced to €1.3 billion, a new low.

• Americas revenue grew 11%, Asia/Australia up 13%, while EMEA declined 3%.

• Free cash flow at €2.1 billion, with strong cash conversion and capital structure.

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, and EPS pre PPA at €10.40–€11.00.

• Digital Industries revenue expected to be 4%-8% 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%.

• Siemens Healthineers expects 4.5%-6.5% revenue growth, adjusted EPS €2.10–€2.30.