• Orders: EUR84 billion, 4% below prior year.

• Revenue Growth: 3% increase.

• Book-to-Bill Ratio: 1.11.

• Backlog: EUR113 billion.

• Industrial Business Profit: EUR3.1 billion.

• Free Cash Flow: EUR9.5 billion for the group.

• Earnings Per Share (pre-PPA): EUR11.45, up 6%.

• Digital Industries Revenue: Declined by 8% on a comparable basis.

• Smart Infrastructure Revenue Growth: 9% increase.

• Smart Infrastructure Profit Margin: 17.3%.

• Data Center Business Revenue: Grew more than 50%, exceeding EUR2 billion.

• Mobility Revenue Growth: 9% increase.

• Mobility Order Intake: EUR15.8 billion.

• Free Cash Flow (Industrial Business): Almost EUR11 billion.

• Dividend Proposal: EUR5.20, up by EUR0.50.

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Release Date: November 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Siemens AG (SIEGY) reported a strong operational performance with a record high free cash flow of EUR 9.5 billion for the group.

• The company achieved a record high earnings per share pre-PPA, excluding Siemens Energy, of EUR 11.45, up 6% from the previous year.

• Smart Infrastructure grew by 9% and achieved a record profitability of 17.3%, exceeding this year's guidance.

• The data center business revenue grew more than 50%, now exceeding EUR 2 billion, and clearly winning market share.

• Siemens AG (SIEGY) announced a dividend proposal of EUR 5.20, up by EUR 0.50, reflecting a strong commitment to shareholder returns.

Negative Points

• Digital Industries revenue declined by 8% on a comparable basis due to challenging conditions for the automation business.

• The automation business faced material headwinds, with revenue down 26% against a strong prior year quarter.

• Economic activity remained muted, with weak investment sentiment in core industries such as automotive and machine building.

• The company anticipates a slow start into fiscal 2025, with orders expected to be on level with the prior year due to continued destocking in automation.

• Siemens AG (SIEGY) faces ongoing geopolitical tensions and macroeconomic uncertainties, impacting global trade and production.

Q & A Highlights

Q: Can you elaborate on the digital industries revenue growth outlook for 2025 and what factors influence the high and low ends of the revenue guidance? A: Ralf Thomas, CFO, explained that the guidance range reflects uncertainties such as the timing of China's destocking and the economic situation in Germany. The company expects normalization in China by February or March 2025. Despite challenges, there is a strong demand for digitalization and automation, driven by regulatory pressures and labor shortages, which should support growth.