Siemens Energy achieves double-digit growth rate; is another stock record surge anticipated?
Siemens Energy Projects Strong Q1 2025 Sales and Earnings Growth
After a stable first business quarter, Siemens Energy, a prominent player in the global energy sector, has reaffirmed its forecast for the fiscal year 2024/25. The company is optimistic about an 8-10% increase in comparable revenue by the end of September 2025, according to statements made during the presentation of detailed financial figures on Wednesday. The management projects the adjusted operating margin to be between 3 and 5%. Particularly grid and gas technologies are expected to drive these improvements.
Robust Q1 2025 Results Boost Outlook
In the first quarter ending December, Siemens Energy saw impressive year-on-year revenue growth from €7.65 billion to €8.9 billion (16%). The adjusted operating result (EBIT) surged from €208 million to €481 million. The gas business contributed the most to the profit, followed by grid technology. Although the net profit after taxes fell from €1.6 billion to €252 million, Siemens Energy's gains from the sale of shares in its Indian energy business to its former parent company, Siemens, in the previous quarter, played a significant role.
A Buyer's Market for Siemens Energy Stocks?
The impact of these figures on the stock market remains uncertain as of now. Initial reactions on Tradegate saw a minor uptick in Siemens Energy's stock price, followed by a 1% decline to €56.50. Although the record of over €60, reached at the end of January, is still out of reach, the recent recovery from a slump caused by the DeepSeek crash is noteworthy. A similar upward trend may emerge again, making the current price drop potentially an attractive buying opportunity.
It is important to note that Siemens Energy reported a net loss of €4.6 billion for the fiscal year 2023[1]. However, the company has since demonstrated significant financial recovery, closing the fiscal year 2024 with a net income of €1.3 billion[1]. This turnaround indicates a favorable outlook for the stock in the early part of 2024. Additionally, Siemens Energy's robust performance in the first half of the current fiscal year has led to an increase in its financial outlook for the fiscal year 2025[2].
Contains material from dpa-AFX
[1] "Siemens Energy reports net loss of €4.6 billion for 2023" (Source: Reuters, 2024)[2] "Siemens Energy raises FY 2025 outlook on strong H1 results" (Source: Reuters, 2025)
Based on the positive financial performances and the outlook for the fiscal year 2025, investors may find Siemens Energy stocks an attractive investment opportunity in the stock-market, especially considering the recent price drop. Given the company's financial recovery and the projected growth in earnings, it is plausible that Siemens Energy's stock prices may again witness a similar upward trend, as demonstrated in the past.
