Latest news with #ChristianBruch
Reuters
06-08-2025
- Business
- Reuters
Siemens Energy targets upper end of outlook as US demand outweighs tariffs
FRANKFURT/DUESSELDORF, Aug 6 (Reuters) - Siemens Energy ( opens new tab expects to hit the upper end of its 2025 growth outlook range, it said on Wednesday, as its wind turbine division and strong demand for equipment in the U.S. have reduced the impact of import tariffs. The company, which makes around a fifth of its sales in the United States, has been insulated from the impact of President Donald Trump's import duties by its strong U.S. presence and contracts that allow costs to be passed on. Siemens Energy Chief Executive Christian Bruch said the impact of tariffs was manageable. Although duties were painful, he said, the U.S. market had performed very strongly and was critical to the company's strategy. Bruch said the tariffs had reduced profits by 100 million euros ($116 million) for the fiscal year so far, adding another mid-double-digit million euro amount would be incurred in the fourth quarter. This was mainly a result of older service contracts that make it harder to pass on price increases caused by tariffs compared with newer ones, Bruch said. "I assume that we will see figures of similar magnitude next year, but this will decline over the years because we will gradually phase out these service contracts and replace them with new ones," he told journalists. Shares in the company, which have nearly doubled since the beginning of the year, were down 0.9% at 0857 GMT, with traders pointing to profit taking following the strong run. Demand in the United States for gas turbines and power transmission equipment - two components Siemens Energy supplies - was rising, the group said, adding that it was trending towards the upper end of its annual outlook. An agreement between Brussels and Washington on tariffs struck last month, which imposes a 15% duty on most EU goods, "provides planning certainty", the company said. Siemens Energy, which last month said it had regained its ability to pay a dividend sooner than expected, forecast sales growth of 13-15% and a profit margin before special items of 4-6%, compared with estimates of 12.9% and 6% respectively in a company-provided poll. Orders grew by nearly two-thirds to 16.6 billion euros in the third quarter, beating analysts' forecast of 14.1 billion euros, and bringing the group's order backlog to a new record 136 billion euros. The performance and stock price recovery also reflects the group's emergence from a major quality crisis at its wind turbine division two years ago that forced the former Siemens AG unit to seek funding guarantees from the German government. ($1 = 0.8635 euros)
Reuters
05-06-2025
- Business
- Reuters
Siemens Energy replaces 11 bln eur government-backed funding facility
FRANKFURT, June 5 (Reuters) - Siemens Energy on Thursday said it had replaced a 11 billion euro ($12.6 billion) government-backed funding facility that was put in place in 2023 to stabilise the power equipment maker, a key step to restore its ability to pay dividends. The government had to backstop billions of euros worth of project guarantees in late 2023 to ensure Siemens Energy - a critical player in the energy infrastructure industry - could fulfil its order book in the wake of major quality issues at its wind turbine business. "The federal government's counter-guarantee was instrumental in 2023 during a challenging phase to secure our strong anticipated growth," Siemens Energy's Chief Financial Officer Maria Ferraro said. One of the conditions of the facility was the suspension of dividend payments at Siemens Energy. "Due to our performance in the past two years and the positive market environment we were able to improve margins, cash flow and strengthen our balance sheet," Ferraro said. "This enabled us to replace the facility before the end of our fiscal year and deliver on our commitment as promised." Siemens Energy Chief Executive Christian Bruch last month said that replacing the government facility would enable the company to resume dividend payments for the 2026 fiscal year. ($1 = 0.8701 euros)
Yahoo
09-05-2025
- Business
- Yahoo
Siemens Energy expects up to 15% revenue growth for FY25
Siemens Energy has announced in its second quarter (Q2) earnings report that it anticipates a comparable revenue growth of 13–15% for fiscal year 2025 (FY25), citing strong order momentum. The company posted a 20.7% increase in revenue on a comparable basis to €10bn in Q2. Orders surged by 52.3% to €14.4bn compared with the previous-year quarter, excluding currency translation and portfolio effects. The company experienced growth across all segments, particularly in Grid Technologies and Gas Services, with the latter achieving a record high in terms of quarterly orders. The company's book-to-bill ratio remained strong at 1.45, contributing to a record order backlog of €133bn. Profit before special items climbed to €906m, a substantial increase from €170m in the same quarter of the previous fiscal year, resulting in a profit margin of 9.1%. Despite negative special items of €291m, mainly due to the sale of its Indian wind business, Siemens Energy's profit rose to €615m. Net income also saw an increase to €501m, with basic earnings per share at €0.50. Free cash flow pre-tax improved dramatically to €1.39bn due to contributions from almost all segments and bolstered by customer payments including reservation fees. Siemens Energy president and CEO Christian Bruch said: 'The rising demand for electricity led to an exceptionally strong quarter and first half of the fiscal year for our business. The improved outlook reflects our confidence in the ongoing market opportunities and our excellent project execution. Even in light of the uncertain macroeconomic factors, our focus remains on profitable growth.' For FY25, the company anticipates a profit margin before special items ranging between 4% and 6%. Net income is expected to reach up to €1bn, excluding potential positive special items following the demerger of the energy business from Siemens Limited, India. The forecast for free cash flow pre-tax has been revised to approximately €4bn. The company anticipates limited direct impact from the recent tariff announcements by the US Government on its profit in the second half of FY2025. Profit is estimated to be up to a high double-digit million euro amount after the implementation of mitigation measures. In March 2025, Siemens Energy secured a $1.6bn project to supply essential technologies for the Rumah 2 and Nairyah 2 gas-powered power stations in Saudi Arabia. "Siemens Energy expects up to 15% revenue growth for FY25" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
08-05-2025
- Business
- Free Malaysia Today
Siemens Energy expects limited US tariff hit, raises prices for new orders
Siemens Energy said its net profit rose nearly fivefold to €501 million in Q2. (EPA Images pic) FRANKFURT : Power equipment maker Siemens Energy expects a limited hit to profits from US tariffs, citing price increases for new orders, as well as a drive to find more local suppliers for parts it needs in its single biggest market. CEO Christian Bruch said most of the German group's orders contained price adjustment clauses that were cushioning the fallout from far-reaching import tariffs announced by the Trump administration last month. Calling the tariffs 'annoying but manageable', Bruch said that while it was too early to assess their future scope, his discussions with US representatives had shown a certain flexibility to change if the local economy was at risk. 'The question will always be 'does it help the USA?'', Bruch told journalists after presenting second-quarter (Q2) results. 'And if it becomes apparent that things are becoming structurally more expensive in the USA, I do believe that there is an openness there,' Bruch said. The US accounts for around a fifth of Siemens Energy's sales and is home to 12% of the group's staff as well as eight of its production locations that make everything from wind and gas turbines to power grid equipment. Siemens Energy fleshed out steps to cushion the impact of duties, including measures to buy more supplies locally and better leverage its US 'footprint for production, processing and repair of key components'. Bruch said the company currently had about 5,000 local suppliers in the US. Factoring in mitigation measures, the company said it expected 'up to a high double-digit million euro' hit to its 2025 net profit, quantifying for the first time the impact of the broad US import tariffs. It currently forecasts a net profit of up to €1 billion (US$1.1 billion) for its fiscal year ending September. The company's stock was up 3.6% at 8.44am, the biggest rise on Germany's blue-chip index, with analysts pointing to better than expected quarterly results. Siemens Energy said its net profit rose nearly fivefold to €501 million in Q2, beating analysts' average estimate of €217 million in an LSEG poll. Peer GE Vernova said last month it expected a cost impact of US$300 million to US$400 million this fiscal year from the tariffs, which have started to disrupt global supply chains. Siemens Energy said its results for January-March, most of which were flagged in April, marked its best quarter since it was spun off from former parent Siemens AG in 2020.
Yahoo
08-05-2025
- Business
- Yahoo
Siemens Energy reports 'one of the strongest quarters ever'
The lettering "Siemens" stands at the Siemens headquarters on Werner von Siemens Strasse. Felix Hörhager/dpa Siemens Energy reported a fivefold increase in profit for the second quarter, driving an upward revision of its full-year guidance for fiscal year 2025 despite ongoing challenges at its turbine-maker subsidiary Gamesa. The renewable energy company posted a quarterly profit of €501 million ($566 million) after taxes, compared to €103 million in the same period last year, calling it "one of the strongest quarters ever," with revenue increasing double-digit in all segments. Siemens Energy raised its full-year net income forecast to up to €1 billion, excluding special items. "The rising demand for electricity led to an exceptionally strong quarter and first half of the fiscal year for our business," chief executive Christian Bruch said. "The improved outlook reflects our confidence in the ongoing market opportunities." Siemens Energy also stated that the impact of the US tariffs on its business would be limited, with the financial impact expected to reach up to a high double-digit million-euro amount in the second half of the fiscal year. This is a relatively low impact compared to other industries, such as the automotive sector. While difficulties at struggling wind power unit Gamesa are not entirely resolved, with the subsidiary again posting a significant loss, this was more than offset by strong performance in gas services and grid technology.
