The German engineering group Siemens obtained a record net profit of 8,301 million euros, as shown by the results at the end of its fiscal year. This, which concluded on September 30, reflects a substantial improvement of 4.4% compared to the 2023 result. As a result of this increase in profit, the company has proposed a 10.6% increase in the dividend. In this way, it would have a value of 5.20 euros per share, compared to 4.70 last year.
The president and CEO of Siemens AG, Roland Buschhas stated that “they executed their strategy rigorously.” The company has particularly benefited from strong demand for electrification and transportation, as well as its industrial software offerings. However, Busch calls its automation business “a challenge.”
In relation to the company’s horizon, its CEO claims that “they will take Siemens to the next level of value creation.” They intend to do so through investment in R&D, in addition to foreseeing mergers and acquisitions to ensure “faster growth based on their technological strengths and the ability to scale in the industry.” Busch mentions Siemens’ next planned acquisition, that of Altair, a software provider in the industrial simulation and analysis market. This operation was closed at 9,225 million euros. Through this acquisition, the German colossus aims to reinforce its leadership in industrial software and artificial intelligence.
Similarly, the financial director of Siemens AG, Ralf P. Thomasannounced free cash flow of 9.5 billion euros. The manager in turn alleged that the strict capital allocation path that Siemens has been undertaking for years is still in force. “We only use our strong balance sheet as a basis to continue our investments, focused on profitable growth and generating attractive returns for the owners of our company,” he stated. Thomas.
Based on specific data, Siemens increased its revenues by 3% in 2024, to 75.9 billion euros. However, orders decreased by 4%, to 84.1 billion. As for net profit, it registered a historical maximum, reaching 9,000 million compared to 8,500 million the previous year.
Looking ahead, Siemens foresees moderate macroeconomic growth in fiscal year 2025. One of the reasons, they allege, is the continued geopolitical uncertainty that the world is experiencing, in addition to trade conflicts. Siemens also mentions the excess capacity and weak demand that the manufacturing sector is currently experiencing as a challenge. On the other hand, the company alleges that the electrification and mobility markets, which have brought them considerable benefits this fiscal year, remain strong.
In turn, looking ahead to next year, Siemens has launched the ONE Tech Company program. This event is part of the German company’s desire to strengthen its position in technology leadership. ONE Tech Company aims to achieve greater customer focus, through the combination of the real and digital world.
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