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Investing.com -- Siemens (ETR:SIEGn) Energy (ETR:ENR1n) delivered its strongest profit margin since becoming an independent company nearly five years ago, sending its shares soaring more than 11% in European trading Thursday.
The company reported second-quarter profit before special items of €906 million, more than five times higher than the same period a year earlier. That figure translates to a 9.1% margin, well above the 6.2% average analyst forecast and the highest since Siemens Energy was spun off from Siemens AG (OTC:SIEGY) in September 2020.
Following the stronger-than-expected results, Siemens Energy raised its full-year guidance. It now sees a profit margin before special items of 4% to 6% for 2025, up from its previous forecast of 3% to 5%.
Revenue growth is projected at 13% to 15%, compared to the prior estimate of 8% to 10%.
The company also upgraded its forecast for pre-tax free cash flow to around €4 billion, a significant increase from its earlier view of more than €1 billion.
The wind turbine unit, Siemens Gamesa, continued to post a loss, but the result was better than expected. The second-quarter loss before special items narrowed to €249 million, beating consensus estimates of €342 million.
Earlier this year, Siemens Energy had warned of potential impacts from U.S. tariffs, noting that while its local presence in the U.S. is substantial, it was too early to assess the financial effect. The company said it would pass on any cost increases to customers.