Siemens Q3 2024 $SIE (-0,6 %)
Financial performance:
- Revenue: For fiscal year 2024, revenue increased by 1% to €75.9 billion (previous year: €74.9 billion).
- Earnings per share (EPS): Reached a record €10.54, an increase of 6% compared to the previous year (previous year: €9.93).
- Orders: Decreased by 6% to 84.1 billion euros (previous year: 89.4 billion euros), indicating a possible stagnation in demand.
Balance sheet overview:
- Total assets: Increased to 147.8 billion euros (previous year: 145.1 billion euros).
- Cash and cash equivalents: Decreased slightly to 9.2 billion euros (previous year: 10.1 billion euros).
- Equity: Increase to 56.2 billion euros, underlining financial strength (previous year: 53.1 billion euros).
Details of the profit and loss account:
- Gross profit: Increased slightly to 29.8 billion euros (previous year: 29.1 billion euros).
- Profit from continuing operations before tax: Increased marginally to 11.2 billion euros (previous year: 11.1 billion euros), indicating a stable operating performance.
Cash flow overview:
- Cash flow from operating activities: Decreased slightly to 11.8 billion euros (previous year: 12.3 billion euros).
- Free cash flow from continuing operations: Sank slightly to 9.7 billion euros (previous year: 10.1 billion euros).
Key figures and profitability metrics:
- Industrial division profitability: Remains stable at a margin of 15.5%, reflecting the efficiency of the operating divisions.
- Return on capital employed (ROCE): Increase to 19.1% (previous year: 18.6%), demonstrating effective use of capital and profitability.
egment information:
- Digital Industries: Sales down 10% to €18.5 billion, indicating potential weakness in demand in this area, although the profit margin remained stable at 18.9%.
- Smart Infrastructure: Sales growth of 9% to €21.4 billion with a profit margin of 17.3%, indicating strong growth potential in infrastructure.
- Mobility: Sales growth of 9% to €11.4 billion with a margin of 8.9%, supported by high demand in the mobility sector.
Competitive position: Siemens remains competitive with a solid capital structure and industry-leading credit rating. The ratio of net debt to EBITDA is a favorable 0.7x.
Forecasts and management commentary: For fiscal 2025, Siemens expects comparable revenue growth between 3% and 7% and a book-to-bill of above 1. Adjusted EPS guidance (excluding PPA) is between €10.40 and €11.00.
Risks and opportunities:
- Risks: Geopolitical uncertainties and challenges in the manufacturing sector could slow down growth.
- Opportunities: Siemens could benefit from investments in infrastructure and the rapidly growing markets for electrification and mobility.
Summary of results:
Positives:
- Record EPS of €10.54: High profit level despite challenges.
- Strong growth in Smart Infrastructure: Segment growth of 9%, benefiting from demand for smart infrastructure solutions.
- Robust free cash flow generation: Solid free cash flow of €9.7 billion, supporting dividend capacity.
- Improved return on capital employed (ROCE): Increase to 19.1% demonstrates efficient use of capital.
- Solid balance sheet: Increase in equity, underlining financial stability.
Negative aspects:
- Decline in orders by 6%: A warning signal for future demand.
- Decline in the Digital Industries segment: 10% drop in sales could indicate structural weakness.
- Lower cash balances: Decline in liquidity, which could affect future flexibility.
- Slight decline in operating cash flow: Slight decline indicates potential efficiency losses.
- Challenges in the manufacturing sector: Overcapacity and weak demand could limit growth potential.
