- Siemens Energy’s net income for Q1 was €252 million, an 84% drop compared to last year.
- Revenue increased by 17% to €8.94 billion, slightly above the estimated €8.45 billion.
- Gas Services revenue grew by 5.7% to €2.82 billion, slightly below the estimated €2.84 billion.
- Grid Technologies revenue rose by 19% to €2.48 billion, but missed the estimate of €2.58 billion.
- The Transformation of Industry segment saw a 17% revenue increase to €1.34 billion.
- Siemens Gamesa Renewable Energy revenue surged by 18% to €2.42 billion, exceeding the €2.12 billion estimate.
- Profit before special items improved to €481 million, up from €208 million last year, exceeding the €404.2 million estimate.
- Gas Services’ profit before special items increased by 32% to €412 million, surpassing the estimated €359.6 million.
- Grid Technologies’ profit before special items climbed by 45% to €309 million, above the estimated €286.2 million.
- Transformation of Industry’s profit before special items reached €157 million, a 50% increase, above the €124.1 million estimate.
- Siemens Gamesa recorded a loss before special items of €374 million, slightly more than the forecasted loss of €335.2 million.
- Total orders for the quarter amounted to €13.67 billion, an 11% decrease year-over-year, yet above the €12.99 billion estimate.
- Earnings per share (EPS) decreased to €0.23 from €1.79 year-over-year.
- The company’s profit margin forecast for the year remains at 3% to 5%, with an estimated 4.37%.
- Siemens Energy expects comparable sales to rise by 8% to 10%, aligning with the 9.51% estimate.
- The company predicts a near break-even net income for FY 2025, excluding positive special items from the demerger.
- Future outlook for Gas Services includes 7% to 9% revenue growth and a 10% to 12% profit margin.
- Grid Technologies aims for 23% to 25% revenue growth and a 10% to 12% profit margin.
- For Transformation of Industry, the forecast includes 11% to 13% revenue growth and an 8% to 10% profit margin.
- Siemens Gamesa expects negative revenue growth of 5% to 9% and a negative profit of approximately €1.3 billion in FY 2025.
- Siemens Gamesa targets breaking even by FY 2026 and plans to restart sales of the 5.X onshore turbine in FY 2025.
Siemens Energy AG on Smartkarma
Siemens Energy AG has garnered positive analyst coverage on Smartkarma, particularly in a research report by Value Investors Club dated Monday, May 13, 2024. The report highlighted Siemens Energy’s pivotal role in the global energy technology and service sector, emphasizing its significant contribution to global electricity generation. Despite facing challenges in its wind turbine business, analysts are optimistic about Siemens Energy’s future prospects. They suggest that the company is well-positioned to capitalize on the increasing power demand and decarbonization trends. With a strong balance sheet, a growing backlog, and attractive valuation, analysts believe Siemens Energy has the potential to double in value over the next year.
A look at Siemens Energy AG Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Siemens Energy AG, a renewable energy company, is positioned for long-term success based on their impressive Smartkarma Smart Scores. With top marks in Growth, Resilience, and Momentum, the company is showing strong potential for expansion, stability, and market performance. This indicates a positive outlook for Siemens Energy AG in the coming years, suggesting that the company is well-equipped to capitalize on growth opportunities in the renewable energy sector.
Despite lower scores in Value and Dividend, Siemens Energy AG‘s high marks in key areas such as Growth, Resilience, and Momentum reinforce its position as a strong player in the industry. The company’s focus on power generation, transmission, and renewable energy services positions it well to meet the evolving needs of customers globally. Investors looking for growth and stability in the renewable energy sector may find Siemens Energy AG to be a promising long-term investment option.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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