Siemens AG has reported a strong start to fiscal year 2025, indicating positive momentum for the company. President and CEO Roland Busch stated, "With a promising start to fiscal 2025, we are creating clear momentum for continued value creation for our stakeholders. Our technologies enable our customers to combine the real and digital worlds to improve competitiveness, resilience and sustainability."
The company achieved a free cash flow of €1.6 billion in the first quarter, surpassing last year's performance. CFO Ralf P. Thomas noted that this result provides "an excellent foundation for a successful fiscal 2025." The financial strength was further bolstered by proceeds of €3.1 billion from the sale of Innomotics.
Siemens confirmed its outlook for fiscal 2025, as initially provided in their Q4 FY 2024 earnings release. The company expects moderate macroeconomic growth amid geopolitical uncertainties and challenges in the manufacturing sector due to overcapacity and weak consumer demand. However, infrastructure markets in electrification and mobility remain robust.
For Digital Industries, Siemens anticipates a change in comparable revenue between -6% and 1%, with a profit margin ranging from 15% to 19%. Smart Infrastructure is expected to see revenue growth between 6% and 9%, with profit margins between 17% and 18%. Mobility forecasts revenue growth of 8% to 10%, with profit margins of 8% to 10%.
Overall, Siemens Group expects comparable revenue growth between 3% and 7%, maintaining a book-to-bill ratio above one. The basic EPS from net income before purchase price allocation accounting (EPS pre PPA) is projected between €10.40 and €11.00 for fiscal year 2025.
Siemens will hold live broadcasts of its first-quarter results press conference call at www.siemens.com/conferencecall starting at 07:30 a.m. CET today, followed by an analyst call at www.siemens.com/analystcall at 08:30 a.m. CET.
Additionally, Siemens' Annual Shareholders' Meeting speeches will be webcast live from Munich at www.siemens.com/press/agm starting at 10:00 a.m. CET.