Siemens Energy (ENR) Q4 2024 (Media) earnings summary

Executive summary

• Fiscal year 2024 marked a strong turnaround, with significant operational improvements and a return to profitability after a challenging 2023.

• Order intake reached over €50 billion, exceeding expectations, and revenue grew by 12.8% to €34.5 billion year-over-year.

• Net income was €1.3 billion, including €2 billion in special items from disposals.

• All business areas met or exceeded targets, with notable progress in Gas Services, Grid Technologies, and Transformation of Industry.

• Siemens Gamesa showed improvement but remains in turnaround mode, with losses reduced and production ramping up.

Financial highlights

• Orders: €50 billion, slightly above last year, with 30% growth excluding wind power.

• Revenue: €34.5 billion, up 13% year-over-year.

• Profit margin: 1% or €345 million, a significant recovery from -9% last year.

• Free cash flow: nearly €2 billion for the year; Q4 free cash flow at €932 million.

• Net cash position improved by almost €3 billion year-over-year, ending at €2 billion.

Outlook and guidance

• Fiscal 2025 group revenue growth expected at 8%-10%, with profit margin of 3%-5%.

• Net income projected around break-even, excluding special items.

• Free cash flow expected to remain strong, supporting investments and growth.

• Midterm (2028) targets: high single-digit to low double-digit revenue growth, group profit margin of 10%-12%.

• Siemens Gamesa expected to break even in 2026 and reach 3%-5% margin by 2028.