Earnings Review: Siemens AG Reports Record Profit, Keeps Outlook Cautious

Key Highlights

• Revenue Growth and Orders: Siemens AG reported a 10% increase in revenue and a 6% growth in orders in the fourth quarter on a comparable basis. The nominal revenue was up 4%, reaching €21.4 billion.
• Record Profit and Net Income: The company achieved its highest-ever quarterly profit in the Industrial Business, increasing 7% to €3.4 billion. Net income for the quarter was €1.9 billion.
• Historic Fiscal Performance: For the full fiscal year 2023, Siemens AG recorded an 11% growth in comparable revenue and a 7% increase in comparable orders. The fiscal year’s net income nearly doubled to a historic high of €8.5 billion.
• Beat Expectations: The firm beat expectations, reporting an EPS of EUR 2.33 against an expected EPS of EUR 1.10.

Soaring Revenues and Orders: Siemens AG’s Impressive Q4 Performance

In the fourth quarter of fiscal 2023, Siemens AG (SIEGY) demonstrated remarkable financial strength, significantly increasing revenue and orders. The company’s revenue rose by 10% on a comparable basis, excluding currency translation and portfolio effects. Notably, this growth translated into a nominal revenue increase of 4%, totaling €21.4 billion. This achievement is underscored by record-high revenues across all industrial businesses. The period also saw a steady growth in orders, maintaining a robust book-to-bill ratio of 1.02.

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Historic Highs in Profit: Siemens’ Industrial Strength

Siemens AG’s financial prowess was further highlighted by its record-breaking profit margins. The Industrial Business segment alone saw a 7% increase in profit, reaching an unprecedented €3.4 billion – the highest quarterly level ever for the company. This performance reflects a remarkable profit margin of 16.5%. Additionally, the quarter’s net income stood at €1.9 billion, a substantial figure despite being lower than the previous year’s quarter, which benefited from a €1.1 billion pretax gain on a business sale. This consistent profitability underscores Siemens’ operational efficiency and strategic acumen in a challenging global market.

A Year of Milestones: Siemens AG’s Fiscal 2023 Success Story

The fiscal year 2023 marks a historic period for Siemens AG, with significant growth and achievement. Comparable revenue increased by 11%, aligning with the upper end of the company’s raised guidance. The fiscal year also saw a 7% increase in comparable orders, contributing to a nominal revenue upsurge of 8% to €77.8 billion. The Industrial Business’s profit grew by 11% year-over-year, culminating in a record €11.4 billion. Perhaps most impressively, net income nearly doubled to a historic high of €8.5 billion. These figures exceeded expectations and set new benchmarks for the company’s performance. Siemens AG’s strategic focus on digital and sustainability transformations has paid off, positioning the company for continued success in the evolving global market.