Siemens (SIE) Q4 2024 (Media) earnings summary

Executive summary

• Fiscal 2024 delivered record profit and strong results despite geopolitical and macroeconomic headwinds, with substantial value created for stakeholders and continued transformation as a leading technology company.

• The One Tech Company program was launched to accelerate customer focus, innovation, and profitable growth, emphasizing foundational, investment, and productivity tracks.

• Major strategic moves included the planned acquisition of Altair Engineering, divestment of Innomotics, and the sale of the airport logistics business.

• Net income reached a historic high of €9.0 billion for the year, up 5% year-over-year; Q4 net income rose 11% to €2.1 billion.

• Free cash flow was €9.5 billion for the year; proposed dividend increase to €5.20 per share.

Financial highlights

• Orders reached €84.1 billion, down 4% year-over-year, while revenue grew 3% comparable; book-to-bill ratio stood at 1.11, with a record order backlog of €113 billion.

• Free cash flow for the group hit €9.5 billion, with industrial business contributing nearly €11 billion.

• EPS pre-PPA (excluding Siemens Energy) rose 6% to €10.54, within guidance; full-year EPS pre-PPA was €11.15.

• Q4 Profit Industrial Business: €3.1 billion (margin 15.5%); net income: €2.1 billion; basic EPS: €2.42.

• ROCE for Q4: 17.2%; cash conversion rate: 2.35; pension provisions at historic low of €0.9 billion.

Outlook and guidance

• Fiscal 2025 guidance: comparable revenue growth of 3%-7%, book-to-bill above 1, and EPS pre-PPA of €10.40–€11 (excluding Innomotics gain).

• Digital Industries revenue guidance: -6% to +1% for 2025, with a slow start and improvement in the second half; margin 15–19%.

• Smart Infrastructure revenue growth guided at 6%-9%, profit margin 17%-18%.

• Mobility revenue growth expected at 8%-10%, profit margin 8%-10%.

• Expectation of moderate macroeconomic growth, with continued geopolitical uncertainty and no further escalation assumed.