Siemens Energy (ENR) Q3 2024 earnings summary

Executive summary

• Revenue grew 18.5% year-over-year to €8.8bn, driven by strong performance in Grid Technologies, Transformation of Industry, and Siemens Gamesa, with record orders in Gas Services.

• Profit before special items was €49m, a significant improvement from negative €2,048m in Q3 FY 2023, reflecting recovery from prior-year quality issues at Siemens Gamesa.

• Net loss narrowed to €102m from €2,931m year-over-year; free cash flow pre-tax surged to €727m, with all segments except Siemens Gamesa contributing positively.

• Order intake declined 29.6% year-over-year to €10.4bn, mainly due to lower orders at Siemens Gamesa and timing shifts at Grid Technologies, but order backlog reached a record €120bn.

• The company remains on track to meet full-year guidance, including improved free cash flow and net income targets.

Financial highlights

• Q3 FY24 revenue rose 18.5% year-over-year to €8.8bn; book-to-bill ratio at 1.18; order backlog reached €120bn.

• Profit before special items was €49m, up from a loss of €2bn in Q3 FY23; margin improved to 0.6% from -27.3%.

• Net loss for the quarter was €102m; free cash flow pre-tax improved to €727m.

• Adjusted net cash position improved to €1.7bn; cash and cash equivalents at quarter-end were €6.1bn.

• EBITDA for the quarter was €414m, up from negative €1,749m in Q3 FY 2023.

Outlook and guidance

• Full-year comparable revenue growth expected at 10–12%; profit margin before special items forecast between -1% and 1%.

• Net income guidance up to €1bn, including impacts from disposals and portfolio transformation.

• Free cash flow pre-tax now expected between €1.0bn and €1.5bn for FY 2024.

• Segment guidance: Gas Services margin 9–11%, Grid Technologies margin 8–10%, Transformation of Industry margin 5–7%, Siemens Gamesa negative profit before special items up to €2.0bn.

• Proceeds from disposals expected to be around €3bn for FY24.