Solid start to the year, turnaround of wind business remains focus

“The solid first quarter is encouraging, in part also due to project shifts, which are normal in plant engineering, especially with the market dynamics we are currently seeing. That is why our focus remains on solving the quality problems in our onshore wind business and making the most of the growth potential for the rest of the company”, says Christian Bruch, President and CEO of Siemens Energy AG.

• Siemens Energy’s business development in the first quarter of the fiscal year was supported by continued favorable energy market trends. With a strong order development, in particular Grid Technologies and Transformation of Industry were able to take advantage of these favorable conditions leading to the highest orders in a quarter to date.

• For the full fiscal year, Siemens Energy confirms its previously communicated outlook.

• Orders increased year-over-year by 23.9% on a comparable basis (excluding currency translation and portfolio effects) to €15.4bn. The book-tobill ratio (ratio of orders to revenue) was slightly above 2, driving the order backlog to a new high of €118bn.

• Revenue came in at €7.6bn reflecting a 12.6% increase on a comparable basis. While all segments contributed to growth, the increase was particularly strong at Grid Technologies.

• Siemens Energy’s Profit before special items sharply improved to positive €208m. Prior year quarter’s result came in, burdened by quality related charges at Siemens Gamesa, at negative €282m. Special items amounted to positive €1,670m (Q1 FY 2023: negative €103m), driven by a pretax gain related to the sale of an 18 percent stake in Siemens Limited, India, of €1,729m. As a result, Profit for Siemens Energy came in at positive €1,878m (Q1 FY 2023: negative €384m).

• Due to the special items, Siemens Energy showed a Net income of €1,582m (Q1 FY 2023: Net loss €598m). Corresponding basic earnings per share (EPS) were positive €1.79 (Q1 FY 2023: negative €0.60).

• Free cash flow pre tax was negative with €283m (Q1 FY 2023: negative €58m). The decrease was primarily due to Siemens Gamesa, which suffered a high cash outflow due to a loss and a build-up of operating net working capital in a seasonal weak quarter. Related to the sale of the stake in Siemens Limited, India, Siemens Energy recorded a cash inflow of nearly €2.1bn which is not reflected in Free cash flow pre tax however contributing to Adjusted Net cash.

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