Siemens Energy has marked a significant turnaround, reporting its first annual profit of 1.3 billion euros for the fiscal year ending September 30. This achievement comes after a tumultuous previous year, where the company incurred losses of 4.6 billion euros, largely attributed to struggles within its subsidiary, Siemens Gamesa. Despite these challenges, Siemens Energy successfully increased its revenue to 34.5 billion euros and its order intake to an impressive 50 billion euros.
CEO Christian Bruch emphasized the importance of the fiscal year 2024, describing it as a pivotal moment for the company. The strong performance in its Grid Technologies and Transformation of the Industry sectors contributed significantly to the improved results. The company has also raised its medium-term forecasts, aiming for enhanced revenue and profit margins by 2028.
Siemens Energy’s stock reached a record high of 47.13 euros, reflecting investor confidence. However, the company opted not to distribute dividends, citing the need to uphold state guarantees. Despite ongoing issues at Siemens Gamesa, the outlook remains positive, bolstered by a robust order volume and favorable energy market conditions anticipated for 2024.
While challenges persist, including quality concerns at Siemens Gamesa, the company is strategically positioned to navigate these obstacles. The successful sales and realignment efforts, particularly with Siemens India, are expected to further stabilize and enhance profitability in the coming years.
