Siemens AG Boosts Net Profit to €9 Billion in Fiscal Year 2024
Foreks - Siemens AG reported its highest net profit in company history, exceeding the previous year's levels due to outstanding performance in the 2024 fiscal year. The net profit reached 9 billion euros, reinforcing the company’s leadership in technology and strengthening growth expectations for the future. During this period, the proposed dividend per share increased to 5.20 euros. Siemens AG’s revenues in the 2024 fiscal year rose by 3% compared to the previous year, reaching 75.9 billion euros. The profit from the Industrial Business Division increased to 11.4 billion euros. Strong free cash flow of 9.5 billion euros was realized at the group level.
Siemens AG successfully continued its profitable growth in the 2024 fiscal year (ending September 30, 2024), making significant strategic advances and achieving record levels as a leading technology company. Siemens expects revenue growth between 3% and 7% for 2025, with earnings per share projected to be between 10.40 euros and 11.00 euros. It is indicated that these targets will be attained through the company's robust business segments and strategic investments. "As we successfully close another fiscal year with record profits, we strictly adhered to our strategy. While challenges in the automation business persist, we benefited from strong demand for our electrification, mobility, and industrial software products," stated Roland Busch, President and CEO of Siemens AG. He further added, "Starting from the 2025 fiscal year, we will elevate Siemens to a higher level of value creation. We will continue our investments in both R&D and mergers and acquisitions to secure faster growth based on our technological strength and inter-industry scalability. Our planned acquisition of Altair strengthens our leadership in industrial software and artificial intelligence. We possess a unique capability to merge the real and digital worlds."
Siemens AG CFO Ralf P. Thomas remarked, "In the 2024 fiscal year, we achieved flawless free cash flow of 9.5 billion euros again. Based on our strong balance sheet, we remain committed to a disciplined capital allocation method to sustain our investments focused on profitable growth while generating attractive returns for our shareholders. Our shareholders will benefit from a dividend that has increased to 5.20 euros, corresponding to a 2.9% dividend yield."
RECORD NET INCOME Siemens increased its revenues in the 2024 fiscal year by 3% compared to the previous year, reaching 75.9 billion euros. Orders fell by 4% compared to the previous year, dropping to 84.1 billion euros, while the order-to-sales ratio was 1.11. The profit from the Industrial Business Division reached 11.4 billion euros with a 1% increase. The profit margin for the Industrial Business Division hit a high of 15.5% for the 2023 fiscal year. The net profit reached a historic high of 9 billion euros, and the basic earnings per share before purchase price allocation accounting stood at 11.15 euros. Excluding the 0.61 euros contribution to pre-PPA EPS from the Siemens Energy Investment, pre-PPA EPS was at 10.54 euros, surpassing expectations. The free cash flow from continuing and discontinued operations at the group level reached an extraordinary level of 9.5 billion euros. The sale of Innomotics, completed after the close of the 2024 fiscal year, resulted in a preliminary post-tax gain of 2 billion euros in the 2025 fiscal year.
STRONG CLOSE IN THE 4TH QUARTER In the 4th quarter, orders increased by 10% year-on-year, rising to 22.9 billion euros. This increase was positively impacted by very strong growth in the Mobility business segment and significant gains in the Smart Infrastructure business segment. Revenues, driven by growth in Smart Infrastructure, Mobility, and Siemens Healthineers, increased by 2% compared to the previous year, reaching 20.8 billion euros, while largely balanced by a decline in the automation sector of the Digital Industries business segment.
The profit from the Industrial Business Division decreased to 3.1 billion euros, primarily due to a sharp decline led by the automation sector within the Digital Industries business segment. Other industrial business segments, led by Smart Infrastructure, achieved their highest quarterly results and increased profit levels. The profit margin for the Industrial Business Division reached 15.5%.
Net profit increased to 2.1 billion euros, showing significant growth compared to the 4th quarter of 2023. In the 4th quarter of 2023, net profit was at 1.9 billion euros, which was impacted by a loss of 0.2 billion euros due to the Siemens Energy Investment and higher tax rates. The free cash flow from continuing and discontinued operations at the group level reached an extraordinary level of 5 billion euros.
"ONE TECH COMPANY" PROGRAM FOCUSED ON VALUE CREATION Siemens AG is strengthening its financial success through various projects. As a leading technology company, Siemens AG has launched the ONE Tech Company program to achieve a higher level of performance and value creation based on its strong position. The program aims to enable the company to capitalize on the opportunities arising from significant market changes and technological disruptions. The goal is defined as achieving stronger customer focus, faster innovation, and higher growth with profitability. Siemens will implement the ONE Tech Company program to accelerate the execution of the current strategy summarized as "integrating the real and digital worlds." The components of the program include the planned inorganic investment in Altair Engineering to strengthen Siemens AG's leading position in industrial software and the establishment of the Core Technologies unit as a business unit to scale core technologies across the company.
2025 FISCAL YEAR OUTLOOK The outlook for the Siemens Group for the 2025 fiscal year indicates moderate macroeconomic growth. It is particularly expected that the infrastructure markets in electrification and mobility will remain strong. For the Siemens group, a revenue growth between 3% and 7% is anticipated, excluding currency translation and portfolio effects, along with an order-to-sales ratio of over 1. In the Digital Industries business segment, it is expected that for the 2025 fiscal year, there will be a revenue change between 1% and 6% excluding currency translation and portfolio effects, and a profit margin ranging between 15% and 19%. In the Smart Infrastructure business segment, a revenue increase between 6% and 9% is anticipated, along with a profit margin between 17% and 18% for the 2025 fiscal year. In the Mobility business segment, an increase in revenue between 8% and 10% is expected, along with a profit margin in the same range for the 2025 fiscal year.
Excluding the gains from the sale of Innomotics, Siemens expects the basic EPS from net income before purchase price allocation accounting for the 2025 fiscal year to be in the range of 10.40 to 11.00 euros. A preliminary gain of 2 billion euros after tax will be recorded in the first quarter of the 2025 fiscal year. Compared to the previous year, the pre-PPA EPS for the 2024 fiscal year was 10.54 euros, excluding the positive impact of 0.61 euros per share from the Siemens Energy Investment.