Siemens Energy Reports Record Quarter amid Industry Challenges

Siemens Energy has announced a remarkable turnaround as it achieved its most successful quarter since becoming an independent entity. The company reported a net profit of EUR501 million for the last quarter, a significant increase compared to the same period last year, where profits were considerably lower.

Despite ongoing challenges from its subsidiary Siemens Gamesa, which continues to impact overall financial performance, Siemens Energy has benefited from robust growth in other sectors. The company has raised its financial outlook, reflecting a strong demand for electricity and an anticipated profit of up to EUR1 billion.

CEO Christian Bruch emphasized that while Siemens Gamesa remains a concern, the overall positive trends in the energy sector have overshadowed these issues. The company is managing the expected impact of new tariffs imposed in the United States, estimating a manageable financial burden in the tens of millions for the remaining quarters of the fiscal year.

In the second quarter, Siemens Energy reported a revenue increase of approximately 20%, reaching nearly EUR10 billion, with a record order intake of EUR14.4 billion--an increase of over 50% compared to previous figures. The surge in orders has been attributed to increasing energy demands, prompting Bruch to express confidence in the company's ability to capitalize on market opportunities.

The company has faced difficulties in the past, particularly with project issues related to Siemens Gamesa, but recent developments indicate a positive trajectory. While Gamesa continues to report losses, strong performances in turbine production and maintenance, as well as energy grid technology, have compensated for these setbacks. Siemens Energy anticipates reaching profitability in the Gamesa division by next year.

Despite the positive outlook, Bruch confirmed that shareholders will not receive dividends for the current fiscal year. This decision is linked to government guarantees provided to secure the company's significant order book two years ago. Although Siemens Energy is on track to lift these guarantees, any potential dividends will only be paid from earnings generated in the following fiscal year, expected to reach shareholders by 2027.

On the stock market, Siemens Energy's shares saw a notable increase, making it one of the biggest gainers in early trading. The company remains optimistic about maintaining this momentum as it continues to navigate the evolving energy landscape.