Promising first quarter generates positive momentum

Siemens had a successful start to fiscal 2025 with a strong performance in the first quarter (ended December 31, 2024) and generated positive momentum for further growth.

“With a promising start to fiscal 2025, we are creating clear momentum for continued value creation for our stakeholders. Our technologies enable our customers to combine the real and digital worlds to improve competitiveness, resilience and sustainability. We see strong traction in bringing real world impact with our leadership in industrial AI,” said Roland Busch, President and CEO of Siemens AG.

“With free cash flow of €1.6 billion, we have significantly exceeded the prior-year performance and created an excellent foundation for a successful fiscal 2025. Proceeds of €3.1 billion from the sale of Innomotics further contribute to our position of financial strength, and we will continue to focus on execution excellence to create long-term value for our shareholders. For fiscal 2025, we confirm our outlook,” said Ralf P. Thomas, Chief Financial Officer of Siemens AG.

Very strong net income and free cash flow

In Q1 2025, Siemens increased revenue 3 percent on a comparable basis to €18.4 billion (Q1 2024: €17.7 billion). Orders totaled €20.1 billion (Q1 2024: €21.6 billion), an 8 percent decline year-over-year on a comparable basis. The book-to-bill ratio was a strong 1.09. The order backlog at the end of Q1 2025 was at the record level of €118 billion.

Profit Industrial Business totaled €2.5 billion, a decline of 8 percent (Q1 2024: €2.7 billion). The profit margin of the Industrial Business was 14.1 percent (Q1 2024: 15.8 percent).

Net income soared 52 percent to €3.9 billion (Q1 2024: €2.5 billion), benefiting from a gain of €2.1 billion (after tax) from the sale of Innomotics. At €4.86, corresponding basic earnings per share before purchase price allocation accounting (EPS pre PPA) were 52 percent higher than in the prior-year quarter (Q1 2024: €3.19). Excluding €2.64 per share related to the sale of Innomotics, EPS pre PPA totaled €2.22.

Free cash flow all-in at Group level from continuing and discontinued operations reached €1.6 billion, an excellent level and a very considerable improvement year-over-year (Q1 2024: €1.0 billion). This increase was due primarily to the strong increase to €1.7 billion in free cash flow at the Industrial Business (Q1 2024: €1.3 billion). 

Higher orders at Digital Industries and Smart Infrastructure 

Orders at Digital Industries rose 6 percent on a comparable basis to €4.2 billion (Q1 2024: €4.0 billion) due to significant increases in both the software and the automation businesses. On a geographic basis, orders grew in all reporting regions, led by the Region Americas. Revenue declined 11 percent on a comparable basis to €4.1 billion (Q1 2024: €4.6 billion). Revenue growth at the software business was more than offset by a significant decline at the automation business. The book-to-bill ratio at Digital Industries was above 1 for the first time in two years. Profit declined to €588 million (Q1 2024: €895 million) due to the automation business, which continued to be impacted by reduced capacity utilization on lower revenue and, in addition, recorded higher severance charges. As a result, the profit margin was 14.5 percent (Q1 2024: 19.6 percent).

Orders at Smart Infrastructure rose 5 percent on a comparable basis to a record high of €6.2 billion (Q1 2024: €5.8 billion). All businesses contributed to this increase, whereby the highest growth contribution came from the electrification business, which won a number of larger contracts from datacenters and customers in the energy and industry areas. Revenue also rose in all businesses to a total of €5.3 billion (Q1 2024: €4.8 billion), led by the electrification and the electrical products businesses, which executed strongly on their large order backlogs from datacenters and energy customers. On a geographic basis, order and revenue growth was driven by the U.S. and Europe. At €891 million, profit even exceeded that of the strong prior-year quarter (Q1 2024: €885 million), which had benefited from a positive effect of €94 million related to past portfolio activities. This strong profit development was driven by higher revenue, increased capacity and ongoing productivity improvements.

Revenue at Mobility rose 10 percent on a comparable basis to €3.0 billion (Q1 2024: €2.7 billion). All businesses reported higher revenue, led by the customer services and the rolling stock businesses. Order intake, which declined to €2.7 billion (Q1 2024: €5.6 billion), included a €0.5 billion order for rail infrastructure and maintenance in the UK and a €0.3 billion order under an existing framework agreement for the delivery of trains in Austria. Q1 2024 had included a sharply higher volume from major orders. At €249 million, profit was nearly at the level of the prior-year quarter (Q1 2024: €251 million). A profit increase at the customer services business was more than offset by a decline at the rolling stock business, which was due mainly to a less favorable business mix. The profit margin declined to 8.4 percent (Q1 2024: 9.3 percent).

Virtual Annual Shareholders’ Meeting to vote on dividend proposal

The ordinary Annual Shareholders’ Meeting of Siemens AG will take place today in a virtual format immediately following the publication of the company’s Q1 figures. Shareholders will vote on a proposal by the Managing and Supervisory Boards to distribute a dividend for fiscal 2024 of €5.20 per share. The proposed dividend is €0.50 higher than the dividend for fiscal 2023 and a testimony to Siemens’ progressive dividend policy.