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.

• Order backlog reached a record €120bn, providing resilience and visibility for future revenue.

• 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.

• Free cash flow pre-tax rose sharply to €727m, with all segments except Siemens Gamesa contributing positively.

• Siemens Energy 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.

• Orders declined 29.6% year-over-year to €10.4bn, mainly due to lower orders at Siemens Gamesa and timing shifts at Grid Technologies.

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

• Free cash flow pre-tax surged to €727m from €27m in Q3 FY23.

• Net loss narrowed to €102m from €2,931m year-over-year; basic EPS improved to negative €0.16 from negative €3.42.

Outlook and guidance

• Full-year comparable revenue growth expected at 10–12%.

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

• Siemens Gamesa losses expected to reach up to €2bn for the year.