Suche
Mein Konto
Siemens Energy at a record high: sales and profits explode!
Siemens Energy shares reach record high with strong sales growth and increased forecast for 2024/25. Current trading figures and analysis.
Siemens Energy at a record high: sales and profits explode!
On Friday, Siemens Energy shares rose by 7.49 percent to 72.60 euros in XETRA trading, reaching a new record high. In the current year, the share has recorded an increase of 34.06 percent, which increases the company's valuation to 53.37 billion euros. Siemens Energy was spun off from Siemens in 2020, with Siemens still holding around 15 percent of the shares.
A bulging order book supports the rise in the share price. Surprisingly good figures were published in mid-April, showing a stronger than expected increase in new business, particularly in the gas and network technology business. The sales and profit forecasts for the 2024/25 financial year have been raised: sales growth on a comparable basis is now expected to be between 13 and 15 percent, previously it was 8 to 10 percent. The profit margin before special items is now estimated at four to six percent, compared to the previous three to five percent. Final figures will be presented on May 8th.
Forecast increase and strong results
Siemens Energy has also raised its forecasts for the financial year due to the high order situation and fossil fuel progress at its subsidiary Siemens Gamesa. In the second quarter, growth exceeded market expectations, with expected profit after tax could be up to 1 billion euros. Adjusted sales will increase 13 to 15 percent, also an adjustment compared to 8 to 10 percent previously.
Furthermore, the earnings margin before special items will be increased to five to six percent, having previously been between three and five percent. Free cash flow before taxes was updated to around 4 billion euros. In the second quarter, the company recorded incoming orders of approximately 14.5 billion euros and sales of 9.9 billion euros, which corresponds to an increase of over 20 percent. Adjusted earnings were more than five times higher than the previous year at 906 million euros, while net profit rose to 615 million euros compared to 501 million euros the previous year. Demand in the business of traditional power generation systems, particularly gas turbines, remains strong.
Growth is also being observed for the Grid Technologies division, which is driving the expansion of the power grids. Siemens Gamesa's losses were narrowed to 249 million euros, and the subsidiary's sales reached 2.7 billion euros, an increase of 16.2 percent.