Siemens was also able to increase its turnover by 5% to €18.9 billion in the third quarter of the current fiscal year 2024 (Q3/2023: €18.1 billion). However, like many of its market competitors, the Munich-based company is also struggling with a weakening order intake. On a comparable basis, this fell by 15 percentage points to €19.8 billion (Q3/2023: €23.5 billion).

The Group reported a profit after tax of EUR 2.1 billion. This corresponds to an increase of 48% (Q3/2023: EUR 1.4 billion). It should be noted here that the same quarter of the previous year had recorded a loss of EUR 0.6 billion in connection with the investment in Siemens Energy. At Group level, free cash flow amounted to EUR 2.1 billion and was therefore lower than in the same period of the previous year (Q3/2023: EUR 3.0 billion). The order backlog amounted to EUR 113 billion in the third quarter, with a book-to-bill ratio of 1.05.

The figures ensure that Siemens confirms its outlook for 2024; comparable revenue growth, i.e. excluding currency translation and portfolio effects, at Group level remains at 4% to 8%, while the earnings margin for Digital Industries is 18% to 21%. However, the figures will be at the lower end of the respective ranges.

"We grew profitably in the third quarter. We continued to benefit from the sustained high demand for electrification. Another growth driver was our particularly strong industrial software business, which won several major license agreements. However, the industrial automation business remains challenging. We confirm our outlook for fiscal year 2024," said Roland Busch, President and CEO of Siemens AG.

Driven by the software business, the industrial business grew by 11% to EUR 3.0 billion (Q3:2023: EUR 2.7 billion).

The divisions in detail

Sales revenue at Digital Industries remained the same on a like-for-like basis and amounted to EUR 4.893 billion (Q3/2023: EUR 4.976 billion). Incoming orders increased by 21% to 4.5 billion euros. Earnings rose by 3% to EUR 1.1 billion, while the earnings margin improved by one percentage point to 22.9%.

This growth is primarily attributable to very strong software business. A whole series of large orders for software licenses, particularly from the regions of Asia, Australia and America, ensured growth of 82% on a comparable basis. Like some other companies on the market, Siemens would also like to introduce a software-as-a-service model. It therefore remains to be seen how the software business will develop thereafter.

In contrast, incoming orders in the automation business fell. This was due to the persistently high inventory levels at customers.

Siemens Smart Infrastructure

Smart Infrastructure 's order intake grew by 11% on a comparable basis to EUR 5.993 billion (Q3/2023: EUR 5.361 billion), with all businesses contributing, particularly Electrification and Buildings. Incoming orders included a number of major orders for data centers and from customers in the energy sector. Sales revenue also increased in all businesses on a comparable basis by 10% to EUR 5.416 billion. The service business accounted for a share of EUR 1.132 billion (Q3/2023: EUR 1.054 billion).

In regional terms, the highest contribution to growth came from the USA. Smart Infrastructure recorded a continued increase in earnings and profitability compared to the previous year on a broad basis with higher sales revenue, increased capacity utilization and continuous improvements in productivity. Earnings rose by 20% to EUR 923 million. The earnings margin reached 17.0% compared to 15.6% in the same quarter of the previous year.

Siemens Mobility

Mobility recorded a slight increase in sales revenue on a comparable basis of 2% to EUR 2.608 billion (Q3/2023: EUR 2.560 billion). In contrast, incoming orders fell by 71% on a comparable basis to EUR 2.399 billion (Q3/2023: EUR 8.330 billion). However, the third quarter of 2023 saw a record order intake with several major orders, including a EUR 2.5 billion order for a turnkey rail system in Egypt and a EUR 2.1 billion order for S-Bahn trains in Germany. Earnings amounted to EUR 227 million and the profit margin was 8.7% compared to 8.1% in the same quarter of the previous year.

Siemens Healthineers

Siemens Healthineers was also able to grow: On a comparable basis, earnings rose by 9% from €5.201 billion to €5.423 billion, while order intake increased by four percentage points from €5.615 billion to €6.079 billion. Earnings and profitability improved in most businesses, particularly in the Diagnostics business, mainly due to cost reductions in connection with its transformation program. The decline in the Imaging business was mainly due to negative currency effects, according to the Group.

Forecast confirmed - Digital Industries probably below previous year's figure

The Group confirms the forecast issued in the earnings release for the second quarter of 2024. Like-for-like revenue growth of 4% to 8% and a ratio of incoming orders to revenue (book-to-bill ratio) of over 1 are expected.

For the Digital Industries Division, Siemens expects revenue to be 8% to 4% below the previous year's figure on a comparable basis. The earnings margin is expected to be in the range of 18% to 21%.

For the 2024 financial year, Smart Infrastructure expects revenue growth on a comparable basis of between 8% and 10% and an earnings margin in a range of 16% to 17%.

For the current fiscal year, Siemens Mobility expects sales growth on a comparable basis of between 8% and 11% and an earnings margin of between 8% and 10%.