Siemens Energy reports record €131 bln order backlog amid strong revenue growth
Investing.com -- Siemens (ETR: SIEGn ) Energy (ETR: ENR1n ) on Wednesday reported a record-high order backlog of €131 billion, reflecting sustained demand across its business segments despite a year-over-year decline in new orders.
The company’s first-quarter earnings for the 2025 fiscal year posted an 18.4% jump in revenue to €8.9 billion compared to the same period last year.
While total orders fell 10.2% from the previous year to €13.7 billion, Siemens Energy attributed the decline to an exceptionally high level of bookings in the prior-year quarter, particularly in its Grid Technologies and Transformation of Industry units.
The book-to-bill ratio—a key metric indicating the balance between new orders and revenue—stood at 1.53, reinforcing the strength of its backlog.
The company also posted a net income of €252 million, a sharp decline from the €1.58 billion recorded in the first quarter of fiscal 2024.
Profit before special items more than doubled to €481 million, though overall profitability was still impacted by challenges at Siemens Gamesa, its wind turbine subsidiary.
Despite continued struggles in the wind segment, the offshore business saw strong growth, helping offset the onshore unit’s decline.
A key driver of Siemens Energy’s cash flow improvement was the influx of project-related advance payments. Free cash flow before tax surged to €1.53 billion, a sharp turnaround from the negative €283 million reported in the previous year.
The strong liquidity position has prompted the company to signal an upward revision of its full-year free cash flow outlook in the coming months.
Siemens Energy expects overall market conditions to remain favorable, with growing electricity demand and energy infrastructure investments supporting its long-term growth.
The company has reaffirmed its revenue growth guidance of 8% to 10% for fiscal 2025, while aiming for a profit margin before special items of 3% to 5%.
Despite the solid performance in its core businesses, Siemens Energy continues to navigate persistent challenges in the wind energy sector.
The company remains focused on stabilizing Siemens Gamesa, with a target to break even by fiscal 2026.