Siemens Energy (ENR) Q4 2024 earnings summary

Executive summary

• Achieved all FY24 annual goals, reaching the top end of guidance for all KPIs, with strong revenue and margin growth, and set higher mid-term targets for FY28.

• Record order intake and backlog, with orders reaching €50.2bn and backlog at €123bn, driven by electricity demand growth and infrastructure investments.

• Significant margin expansion and improved profitability, with net income of €1.3bn in FY24 versus a loss in FY23.

• Free cash flow pre-tax for FY24 at €1.9bn, nearly double the prior year, with all segments delivering positive cash flows.

• Electricity demand growth, especially from data centers and infrastructure, is driving investments and business momentum across all areas.

Financial highlights

• FY24 revenue: €34.5bn, up 12.8% year-over-year, exceeding guidance.

• Net income: €1.3bn, aided by €2bn in special gains from portfolio actions; Q4 net loss of €254m, a significant improvement from prior year.

• Free cash flow pre-tax: €1.9bn for FY24, Q4 at €932m, both nearly double prior year.

• Order backlog: €123bn, a record, with a book-to-bill ratio of 1.46 for FY24 and 1.54 for Q4.

• Special items: €2bn, mainly from divestment gains and portfolio transformation.

Outlook and guidance

• FY25 guidance: revenue growth of 8–10%, profit margin before special items of 3–5%, net income around break-even, and free cash flow pre-tax up to €1bn.

• FY28 targets: group margin of 10–12%, high single to low double-digit revenue CAGR, with all business areas contributing to improvement.

• Segment targets for FY28: Gas Services margin 12–14%, Grid Technologies 13–15%, Transformation of Industry 10–12%, Siemens Gamesa 3–5%.

• Siemens Gamesa targeted to break even by 2026, with 5.X onshore turbine sales to resume in FY25.