Siemens Energy delivers confident outlook after strong first quarter
By Benjamin Chiou
Date: Wednesday 12 Feb 2025
(Sharecast News) - German energy giant Siemens Energy said it has made a strong start to the year with double-digit top-line growth helped by "favourable market trends".
The company, which operates in the gas turbines, power plants, digital grids and electrolyzer markets, reported revenues of €8.9bn for the three months to 31 December, up 18.4% on a comparable basis with the year before.
Adjusted profit before special items more than doubled to €481m from €208m previously. Special items amounted to a loss of €18m, compared with a profit of €1.67bn the year before as a result of disposals. As such, net income slumped to just €252m from €1.58bn.
Free cash flow before tax improved to €1.53bn from an outflow of €283m a year earlier, driven by project advance payments and timing effects of customer payments. The company said it expects to exceed its full-year free cash flow target of "up to €1bn" and will update its guidance at its half-year results.
"Our strong first quarter reflects the market opportunities arising from the increasing demand for electricity. The strong cash flow was mainly driven by growth across all our businesses, advance payments and timing effects. Our focus lies still on profitable topline growth and technological leadership," said Christian Bruch, president and chief executive.
Looking ahead, Siemens Energy expects "overall favourable conditions" to continue, predicting comparable revenue growth of 8-10% in the current financial year, while adjusted net income is forecast to be "around break-even".
"Strong electricity consumption growth, replacement investment and the requirements of the energy transition necessitate investment in energy infrastructure supporting all businesses of Siemens Energy," the company said.
Shares were up 0.5% at €57.04 by 1046 in Frankfurt.
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