Siemens Energy (ENR) Q1 2025 earnings summary

Executive summary

• Strong Q1 FY2025 performance with revenue up 18.4% year-over-year to €8.9bn, driven by robust demand and growth across all segments.

• Orders reached €13.7bn, slightly down year-over-year due to prior large Grid Technologies orders, but book-to-bill ratio remained high at 1.53, pushing order backlog to a record €131bn.

• Profit before special items more than doubled to €481m (5.4% margin), with net income at €252m, reversing a negative €1.3bn year-over-year.

• Free cash flow pre-tax surged to €1.5bn, exceeding expectations and up €1.8bn year-over-year.

• S&P upgraded outlook to stable, reaffirming BBB- investment grade rating.

Financial highlights

• Revenue: €8.9bn (+18.4% year-over-year); Orders: €13.7bn; Order backlog: €131bn (+11.2% year-over-year).

• Profit before special items: €481m (5.4% margin), more than doubled year-over-year.

• Net income: €252m (Q1 FY2024: €1,582m, which included a significant one-time gain).

• Free cash flow pre-tax: €1.5bn, materially stronger than expected.

• Adjusted net cash position: €3.7bn at quarter-end; cash and cash equivalents at €8bn.

Outlook and guidance

• FY2025 guidance: 8–10% comparable revenue growth, profit margin before special items of 3–5%, net income at breakeven (excluding special items).

• Free cash flow pre-tax expected to exceed previous guidance of up to €1bn; update to be provided at half-year results.

• High confidence in meeting FY2025 and FY2028 targets, supported by strong backlog and market demand; FY2028 targets include 10–12% profit margin and high single- to low double-digit revenue growth.

• Segment guidance: Gas Services revenue +7–9%, margin 10–12%; Grid Technologies revenue +23–25%, margin 10–12%; Transformation of Industry revenue +11–13%, margin 8–10%; Siemens Gamesa revenue -9% to -5%, loss of ~€1.3bn.