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Investing.com -- Siemens (ETR:SIEGn) Energy (ETR:ENR1n) on Thursday raised its full-year outlook after delivering one of its strongest quarters on record, driven by surging electricity demand, record-high orders and double-digit revenue growth.
Orders in the fiscal second quarter rose 52.3% year over year to €14.4 billion on a comparable basis, led by gas services and grid technologies.
The company’s book-to-bill ratio reached 1.45, and its order backlog hit an all-time high of €133 billion.
Revenue increased 20.7% to €10 billion, with all business segments contributing. Profit before special items rose to €906 million, or 9.1% of revenue, up from €170 million a year earlier.
Net income rose to €501 million from €108 million. Free cash flow before taxes more than doubled to €1.39 billion, supported by advance payments and stronger operational performance.
Given the results, Siemens Energy now expects full-year comparable revenue growth of 13% to 15%, up from a prior range of 8% to 10%.
It raised its profit margin forecast before special items to between 4% and 6%, and projected net income of up to €1 billion, excluding gains from the planned demerger of Siemens Limited’s energy unit in India. Free cash flow before tax is now forecast at around €4 billion.
Gas Services led the surge in orders and revenue, aided by large-scale contracts and robust service business growth.
Grid Technologies also saw broad-based gains, with performance boosted by strong project execution and favorable timing effects.
Siemens Gamesa, while still in loss territory, showed signs of improvement. Revenue increased, largely driven by offshore wind, though ongoing challenges in onshore turbines and offshore ramp-up costs continued to weigh on profits.
The company said it expects Siemens Gamesa to break even by fiscal 2026 and anticipates resuming sales of the 5.X onshore turbine during fiscal 2025.
Siemens Energy said it is monitoring potential impacts from new U.S. tariffs announced in April and currently expects a limited effect on profit in the second half of the year.