Siemens Energy (ENR) Q3 2024 (Media) earnings summary

Executive summary

• Orders reached EUR 10.4 billion, with Gas Services orders more than doubling year-over-year to a record EUR 5.3 billion, though overall order intake declined 29.6% due to timing shifts and a high prior-year base.

• Revenue grew 18.5% year-over-year to EUR 8.8 billion, with all business areas contributing to growth, especially Grid Technologies and Transformation of Industry.

• Order backlog reached a record EUR 120 billion, providing a strong foundation for future revenue and profitability.

• Siemens Gamesa wind business posted a EUR 450 million loss for the quarter, totaling EUR 1.3 billion loss after three quarters, but losses narrowed and remain within expectations.

• Free cash flow pre-tax surged to EUR 727 million, with all segments except Siemens Gamesa contributing positively.

Financial highlights

• Group profit before special items was EUR 49 million, a significant turnaround from negative EUR 2,048 million in Q3 FY 2023.

• Net loss for the quarter was EUR 102 million, narrowed from EUR 2,931 million year-over-year.

• Free cash flow improved to EUR 727 million, driven by higher profitability and strong order intake.

• Cash and cash equivalents increased to EUR 6.1 billion; net cash position (excluding pensions) at EUR 2.25 billion.

• EBITDA for the quarter was EUR 414 million, compared to negative EUR 1,749 million in Q3 FY 2023.

Outlook and guidance

• On track to reach full-year guidance and objectives, with full-year comparable revenue growth expected at 10–12%.

• Siemens Gamesa losses now expected to be up to EUR 2 billion for the year, marking the low end of the previous range.

• Free cash flow before tax guidance raised to EUR 1–1.5 billion for FY 2024.

• Profit margin before special items forecast between negative 1% and positive 1%.

• Focus remains on increasing profitability, wind business turnaround, and strengthening the balance sheet.