Siemens Energy posts strong Q2 results amid slump in wind orders

Siemens Energy AG (ETR:ENR) delivered solid performance in its second fiscal quarter through March, the German company said on Wednesday as it also unveiled a change of the chief executive of its wind business.

“Our strong development in the second quarter underscores the continued strong demand for our technology to power the energy transition and our success in stabilising the wind business,” said Siemens Energy’s president and chief executive Christian Bruch.

In the second quarter, the wind business, Siemens Gamesa, expectedly experienced a slump in orders as onshore orders continued to be affected by a temporary interruption of sales for the 4.X and 5.X turbines and there was no repeat of the large orders secured in the offshore and service businesses a year ago. Profitability is still impacted by project margins encumbered by higher planned costs due to the known quality issues, as well as increased product costs and ramp-up challenges in the offshore segment in the prior year.

Some details of Siemens Gamesa's performance:

At a group level, Siemens Energy turned to a net profit of EUR 108 million (USD 116m) in the quarter and raised its outlook for fiscal year 2024. It now guides for comparable revenue growth of between 10% and 12%, up from the previously projected range of 3%-7%, and a profit margin before special items of between negative 1% and positive 1%, compared to the prior forecast for negative 2% to positive 1%. Free cash flow pre tax is now expected to be up to positive EUR 1 billion, while the net income forecast is kept at up to EUR 1 billion.

The outlook for Siemens Gamesa projects a revenue development in the second half of the fiscal year significantly exceeding the first half-year, mainly driven by the ramp-up in the offshore area.

Below you can find more details about Siemens Energy's results:

(EUR 1 = USD 1.077)

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