Energy Giant Siemens Shines - Booming Quarter for Siemens Energy
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Record-Breaking Quarter for Siemens Energy: A Surge in Success - Siemens Energy experiencing consistent growth and reaching record-breaking profit levels.
It's clear skies ahead for Siemens Energy. The company is leaving its past struggles in the dust and is on a path to a prosperous year. In the recently-completed quarter, the energy technology titan raked in a whopping €501 million in net profit - nearly five times the value compared to the same period last year. While Siemens Gamesa continues to be a tracker, other sectors are performing so well that Energy recently raised its forecast significantly. Even the latest US tariffs are causing only minor ripples.
"Pesky but manageable," CEO Christian Bruch remarks about the anticipated effects of tariffs. The company anticipates the tariffs' impact in the remaining two quarters of the fiscal year to be a high double-digit million euro figure. This is relatively slight compared to the values suggested by German automakers, for example. These minor dents in profitability are quickly overshadowed by the recent strong momentum.
Order influx
This surge was also reflected in the revenue and order intake for the second quarter. Revenue climbed about 20% to nearly €10 billion, and order intake reached €14.4 billion, not only significantly higher but also more than doubled.
CEO Bruch uses the term "order influx." "The surging electricity demand" was a key factor, he said, and he recently increased the forecast — from a result close to the break-even point to a potential €1 billion in profit. "The improved forecast reflects our confidence in the sustained market opportunities, as well as our excellent project execution."
In the past, issues with individual projects, particularly at Gamesa, had weighed down the numbers for the entire company. Now, Energy is optimistic that these problems are under control.
Gamesa still grapples
However, the rocky road at Gamesa is not quite over. In the second quarter, the subsidiary posted a substantial loss in its segment, which was more than compensated by strong numbers in the business involving turbines and their maintenance, as well as power grid technology. While Gamesa continues to struggle with issues concerning two crucial types of onshore wind turbines, the company aims to reach the break-even point next year. If the performance in the other areas continues to be as impressive as it is now, Energy could reach new heights in earnings.
A run to the end of the guarantees - but no dividend
Nevertheless, Energy's shareholders will not receive a dividend for the current fiscal year, Bruch clarifies. The reason is the state guarantees the company received two years ago to secure its full order book. While the company is on track to shed them during the course of the fiscal year, as CFO Maria Ferraro explains, Energy would only be able to pay a dividend for earnings generated in the following year, which could reach shareholders as early as 2027.
Despite this, shareholders could still celebrate on Thursday - Siemens Energy was one of the biggest winners on the stock market in the morning.
- Siemens Energy
- Gamesa
- Christian Bruch
- Munich
- Siemens AG
- CEO
- [Christian Bruch], the CEO of Siemens Energy, expressed optimism about the company's future, highlighting a significant increase in net profit and order influx in the recently completed quarter.
- Despite Siemens Energy's strong performance in various sectors, its subsidiary, Gamesa, is still grappling with issues concerning certain types of onshore wind turbines, but the company aims to reach the break-even point next year.
- Siemens Energy shareholders will not receive a dividend for the current fiscal year due to the presence of state guarantees, which the company expects to shed during the fiscal year. However, the potential earnings for the following year could lead to dividends as early as 2027.
