Siemens (SIE) Q3 2024 earnings summary

Executive summary

• Achieved profitable growth and margin expansion in Q3 2024, with revenue up 5% year-over-year, strong order backlog, and robust top-line momentum driven by electrification, digital, and sustainability trends, despite macroeconomic headwinds.

• Smart Infrastructure and Siemens Healthineers delivered strong order and revenue growth; Digital Industries saw exceptional Software business performance, offsetting softness in Automation.

• Book-to-bill ratio at 1.05, supported by robust orders in Smart Infrastructure and Healthineers; Digital Industries sequentially improved.

• Strategic board appointments and contract extensions reinforce management stability and long-term strategy execution.

• Sustainability leadership recognized with first EcoVadis platinum rating and Siemensstadt Square as a global blueprint.

Financial highlights

• Q3 revenue grew 5% year-over-year to €18.9 billion; Smart Infrastructure up 10%, Healthineers up 4%, DI flat.

• Orders at €19.8 billion, down 15% year-over-year, reflecting tough comps in Mobility.

• Industrial business profit exceeded €3 billion, with margin at 16.5% and 110 basis points expansion over prior year.

• Free cash flow in industrial business reached €2.5 billion; EPS pre PPA at €2.66.

• Net income increased 48% year-over-year to €2.1 billion; basic EPS up 55% to €2.51.

Outlook and guidance

• Full-year 2024 guidance confirmed: comparable revenue growth at lower end of 4%-8% range, book-to-bill above one, and basic EPS before PPA (excluding Siemens Energy) in €10.40–11.00 range.

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

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

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

• Siemens Healthineers expects 4.5–6.5% comparable revenue growth and adjusted basic EPS of €2.10–2.30.