Siemens Energy's Q2 2025 Success Story
Siemens Energy Experiences Unparalleled Success in Recent Quarterly Report - Siemens Energy experiencing continuous growth, recording its most prosperous quarter yet.
Siemens Energy is cruising through the storm of recent years and looks set for a prosperous year. The CEO, Christian Bruch, has fondly dubbed the latest quarter, which Siemens Energy refers to as its most lucrative since independence, a tax-adjusted profit of a whopping 501 million euros—nearly 5 times what they made in the same period last year. Although their subsidiary, Siemens Gamesa, is still a sore spot, other sectors are thriving so much that Energy recently boosted its forecast significantly. Even the new U.S. tariffs are causing only minor hiccups.
Addressing the tariffs' impact, Bruch calls it "annoying, but manageable." The company predicts the quarterly impact of these tariffs in the remaining two quarters of the fiscal year to be a high double-digit million-euro figure. Compared to the figures echoed by German automakers, this is relatively small change. These minor setbacks are overshadowed by Energy's impressive performance.
Revenue Flare-up
This overachievement is clearly reflected in the second quarter's revenue and order intake. Revenue soared by approximately one-fifth to almost 10 billion euros, while order intake wasn't just significantly higher at 14.4 billion euros but also grew by over half.
Bruch describes this rise as an "order boom." "The burgeoning demand for electricity," he said, played a significant role. Consequently, he recently upgraded the forecast—from a break-even point result to potential profits of up to 1 billion euros. "The enhanced outlook reflects our confidence in the sustained market opportunities as well as our outstanding project execution," he added.
Past pitfalls at Gamesa have weighed down the company's overall numbers. However, Energy is optimistic about overcoming these issues.
Gamesa's Woes Persist
Despite progress, Gamesa's struggles aren't entirely behind them. In the second quarter, the subsidiary posted a significant loss in its segment, which was lessened by robust performances in the turbine and maintenance business, as well as the power grid technology sector. Although Gamesa still grapples with two critical onshore wind turbine types, the company expects to reach the break-even point by next year if other business areas perform as well as they are now.
If Energy fulfills its current forecast, it would not only mark the first annual profit since Siemens Energy's separation from Siemens in 2020 but also a profit based on its own merits.
Towards the End of Guarantees – But No Dividend
Despite this impressive growth, Siemens Energy shareholders won't be receiving any dividends for the current fiscal year. Bruch explains that the state guarantees the company received two years ago to secure its full order book are the reason behind this. Although the company anticipates shedding these guarantees during the fiscal year, they will only be able to distribute dividends based on earnings generated in the following year, which could benefit shareholders as early as 2027.
Despite this, shareholders still reaped rewards on Thursday—Siemens Energy was one of the top performers on the stock exchange that morning.
- Siemens Energy
- Gamesa
- Christian Bruch
- Munich
- Siemens AG
- CEO
- Despite the ongoing challenges posed by the tariffs, Siemens Energy's CEO, Christian Bruch, considers the impact as "manageable."
- Bruch recently upgraded Siemens Energy's forecast, projecting potential profits of up to 1 billion euros, a significant increase from the break-even point result.
- In the second quarter, Siemens Energy's revenue soared by approximately one-fifth to almost 10 billion euros, with order intake growing by over half to 14.4 billion euros.
- Siemens Gamesa, a subsidiary of Siemens Energy, is still facing difficulties, but with robust performances in other sectors and a positive outlook, the company hopes to reach the break-even point by next year.
