Siemens Q1 Net Profit Surges, Orders Down; Backs FY25 View; Stock Up

(RTTNews) - Shares of Siemens AG were gaining around 6 percent in the German trading on the XETRA after the conglomerate on Thursday reported significantly higher net profit in its first quarter, benefited by a gain on sale of Innomotics, and confirmed fiscal 2025 comparable revenue growth outlook. This was despite reporting weak earnings from continuing operations and orders in the quarter.

Looking ahead, the company said, "We anticipate moderate macroeconomic growth in fiscal 2025, due in part to continuing geopolitical uncertainty including trade conflicts, and also to ongoing challenges for the manufacturing sector due to overcapacity and weak consumer demand. At the same time, infrastructure markets, particularly in electrification and mobility, remain strong."

For fiscal 2025, Siemens still expects basic earnings per share before purchase price allocation accounting, or pre PPA, in a range of 10.40 euros to 11.00 euros, excluding the gain from the sale of Innomotics.

The expected gain of 2.1 billion euros was recorded in the first quarter of fiscal 2025.

In fiscal 2024, earnings per share pre PPA was 10.54 euros excluding a positive 0.61 euro per share from Siemens Energy Investment.

Further, the company continues to project comparable revenue growth in the range of 3 percent to 7 percent for the new year.

Comparable revenue grew 3 percent in fiscal 2024 to 75.9 billion euros.

For the first quarter, Siemens' net income attributable to Shareholders totaled 3.71 billion euros or 4.66 euros per share, higher than last year's 2.39 billion euros or 2.99 euros per share.

On a continuing operations basis, excluding the profit from discontinued operations of Innomotics, income fell 30 percent to 1.80 billion euros from 2.57 billion euros a year ago.

For the first quarter, earnings per share before purchase price allocation accounting, or pre-PPA, stood at 4.86 euros, compared with 3.19 euros last year.

Excluding 2.64 euros per share related to the gain from the sale of Innomotics, earnings per share pre PPA were 2.22 euros.

Profit Industrial Business dropped 8 percent year-over-year to 2.52 billion euros, mainly reflecting substantial decrease for Digital Industries due to the automation business. However, Smart Infrastructure delivered higher results and made the largest contribution to profit. Siemens Healthineers also significantly increased its profit.

The company's revenue for the period rose 3.4 percent to 18.35 billion euros from 17.75 billion euros last year.

According to the company, revenues grew at Mobility, Smart Infrastructure and Siemens Healthineers. revenue growth in the software business also continued. Meanwhile, Digital Industries significantly declined due to the automation business.

Meanwhile, orders for Siemens overall declined 7 percent to 20.07 billion euros from 21.64 billion euros last year. Higher order intake in most industrial businesses was more than offset by a decrease at Mobility, which reported a sharply lower volume from large orders last year.

On a comparable basis, excluding currency translation and portfolio effects, revenue was up 3 percent, while orders decreased 8 percent.

On the XETRA, Siemens shares were trading at 225.10 euros, up 6.15 percent.

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