Siemens reports record profits; outlines future growth strategies

Banking & Financial Services
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Daniela Proust Senior Vice President, Head of People & Organization, Siemens USA | Siemens Financial Services

Siemens AG has concluded its fiscal year 2024 with record profits, according to statements from company executives. Roland Busch, President and CEO of Siemens AG, noted the company's success in delivering strong financial results and highlighted ongoing demand for electrification, transportation, and industrial software offerings. "In another successful fiscal year, we delivered record profit and stringently executed our strategy," Busch stated.

The company plans to further enhance its growth by investing in research and development (R&D) as well as mergers and acquisitions (M&A). The acquisition of Altair is expected to bolster Siemens' leadership in industrial software and artificial intelligence. "Our ability to combine the real and digital worlds is unmatched," Busch added.

Chief Financial Officer Ralf P. Thomas emphasized Siemens' excellent free cash flow of €9.5 billion for fiscal 2024. He assured shareholders that the company remains committed to capital allocation strategies aimed at profitable growth while providing attractive returns. Thomas announced a proposed dividend increase to €5.20 per share, resulting in a yield of 2.9 percent.

Siemens reported a revenue increase of 3 percent on a comparable basis, reaching €75.9 billion for fiscal 2024, although orders declined by 4 percent compared to the previous year. The Industrial Business profit rose slightly by 1 percent to €11.4 billion.

Net income reached an all-time high of €9 billion, with basic earnings per share before purchase price allocation accounting rising to €11.15. Free cash flow remained robust at €9.5 billion from both continuing and discontinued operations.

The sale of Innomotics post-fiscal year resulted in a preliminary gain after tax of €2 billion for fiscal 2025.

In the fourth quarter alone, orders increased by 10 percent on a comparable basis due primarily to strong performance in Mobility and Smart Infrastructure sectors. However, profit from Industrial Business decreased due to challenges faced by Digital Industries' automation business.

Looking ahead to fiscal 2025, Siemens launched the ONE Tech Company program aiming for stronger customer focus and faster innovation through strategic investments like Altair Engineering's planned acquisition.

The outlook for fiscal 2025 assumes moderate macroeconomic growth amid geopolitical uncertainties but expects continued strength in infrastructure markets such as electrification and mobility sectors.