FX.co ★ Siemens Energy Turns To Profit In Q2; Backs FY24 Profit View, Lifts Revenue Growth Forecast

Siemens Energy AG, a German multinational company, announced its second-quarter net income of 108 million euros. This shows a noticeable improvement from last year when the company suffered a net loss of 189 million euros. Consequently, basic earnings per share increased to 0.08 euro compared to the 0.25 euro loss experienced in the previous year.

One of the significant contributors to the latest results is a positive 331 million euros. This increase is predominantly due to pre-tax gains obtained from the sales of businesses, in line with the company's drive for disposals and accelerated portfolio transformation.

Highlighting further improvements, Siemens Energy's profit before special items rose to 170 million euros, marking a considerable surge from 41 million euros a year ago. Its revenue also saw a small but notable growth, climbing to 8.28 billion euros from last year's 8.03 billion euros, which equates to a 3.7% increase. This growth comes largely from its Grid Technologies and Transformation of Industry, both of which have shown significant progress.

Furthermore, as a result of its strong business performance in the past six months, Siemens Energy has revised its fiscal 2024 outlook. The company now anticipates a comparable revenue growth of between 10% and 12%, up from the previously projected range of 3% to 7%. Similarly, it expects its profit margin before special items to oscillate between negative 1% and positive 1% compared to the previous forecast of between negative 2% and positive 1%.

Lastly, the company's outlook for Siemens Energy's net income remains unchanged, expecting it to reach up to 1 billion euros.