Siemens AG posts profitable growth in Q3

German industrial giant Siemens AG reported third-quarter figures. The company stated that it is maintaining its financial targets for year-end 2024. Additionally, Siemens AG's total orders in the third quarter reached EUR 113 billion. Siemens AG Chairman and CEO Roland Busch said "Our profitable growth in the third quarter confirms that we are making steady progress towards our 2024 year-end targets."

Siemens AG continued its profitable growth trend in the third quarter as well. The company demonstrated its financial strength by increasing net income and profit margins. In the third quarter, Siemens received total orders worth EUR 113 billion, showing through its order-to-sales ratio that it is extremely well-positioned for the future. The company confirmed its 2024 year-end financial growth targets: annual revenue growth of 4 to 8 percent, profit margin in the Digital Industries business division of 18 to 21 percent, and profit margin in the Smart Infrastructure business division of 16 to 17 percent. Siemens AG increased revenue in the third quarter of the year by 5 percent compared to the previous period to EUR 18.9 billion (Q3 2023: EUR 18.1 billion). Orders received decreased by 15 percent to EUR 19.8 billion (Q3 2023: EUR 23.5 billion). On the other hand, order volumes in the company's Digital Industries and Smart Infrastructure business divisions rose. In contrast, large-order volume in the Mobility business division remained lower compared to Mobility's record-level orders in the third quarter of 2023. In the disclosed third-quarter report, profit in the Digital Industries business division increased by 11 percent to EUR 3 billion with contributions from all industrial business divisions. Additionally, the profit margin rose to 16.5 percent. The company increased net income by 48 percent to EUR 2.1 billion, whereas in the same quarter of the previous year there was a loss of EUR 600 million related to holdings in Siemens Energy AG.

REVENUE AND PROFIT MARGIN INCREASED

Siemens AG Chairman and CEO Roland Busch said the following on the matter: "By growing profitably in the third quarter, we continued to benefit from strong demand in the electrification sector. Another growth factor was our extremely strong industrial software business division, which signed several major licensing agreements. Challenges in the industrial automation business division continue. Our profitable growth in the third quarter confirms that we are making steady progress towards our 2024 year-end targets."

Siemens AG CFO Ralf P. Thomas stated: "Overall, we achieved clear increases in both net income and profit margin in the third quarter. We again generated strong free cash flow and will reiterate the importance we place on cash with a strong fourth quarter."

FREE CASH FLOW REACHED EUR 2.1 BILLION

Free cash flow from continuing and discontinued operations at group level reached EUR 2.1 billion. The main reason for the decline in free cash flow was the Industrial Business Division, which recorded free cash flow at the EUR 2.5 billion level compared to EUR 3.1 billion in the third quarter of 2023. In the same quarter of the previous year, the Mobility Business Division had received significant advance payments from customers. Second, cash outflows for tax payments in the third quarter of 2024 were EUR 500 million higher compared to the same quarter of the previous year.