Siemens (SIE) Q2 2025 earnings summary

Executive summary

• Orders grew 9%-10% year-over-year to €21.6 billion, with strong performance in Mobility and Healthineers, and a robust book-to-bill ratio of 1.10; backlog reached €117 billion.

• Revenue increased 6%-7% year-over-year to €19.8 billion, led by double-digit growth in Mobility and Smart Infrastructure, with all regions contributing positively.

• Profitability was strong, with industrial business profit at €3.2 billion and a margin of 16.9%, supported by divestment gains.

• Free cash flow in the industrial business reached €2.1 billion, and net income rose 11% to €2.4 billion.

• Major acquisitions included Altair Engineering for €9.5 billion and a signed agreement to acquire Dotmatics for $5.1 billion, expanding the software and life sciences portfolio.

Financial highlights

• Book-to-bill ratio at 1.10, with order backlog at €117 billion supporting future growth.

• Industrial business profit margin at 16.9%, including divestment gains; EPS pre-PPA at €3.00 for the quarter.

• Smart Infrastructure delivered 10% revenue growth and expanded operational margin to 18.5%, with Electrification up 18%.

• Mobility revenue increased 12%-13% with a profit margin of 9.1%-9.4%; backlog at €49 billion.

• Siemens Financial Services posted strong results, aided by a €201 million gain from equity divestment.

Outlook and guidance

• Fiscal 2025 group guidance confirmed: comparable revenue growth of 3%-7%, book-to-bill above one, and EPS pre-PPA of €10.40–€11.00 (excluding certain one-time effects and Innomotics gain).

• Smart Infrastructure guidance: 6%-9% revenue growth and 17%-18% operational margin (excluding divestment gain).

• Digital Industries expects organic revenue growth of -6% to +1% for 2025, with profit margin in the 15%-19% range, despite severance charges and Altair integration costs.

• Mobility expects mid-teens revenue growth in Q3 and full-year margin of 8%-10%.

• Siemens Healthineers expects 5%-6% revenue growth and adjusted EPS of €2.20–2.50 for FY2025.