Siemens Energy Stock: Q1 Results Surpass Market Expectations

Siemens Energy has demonstrated remarkable performance in the first quarter of fiscal 2024/25, with revenue surging 18.4% to €8.94 billion, significantly exceeding analyst forecasts of €8.49 billion. The company's adjusted operating profit more than doubled to €481 million compared to the previous year, showcasing substantial operational improvements. The free cash flow before taxes reached an impressive €1.5 billion, marking a dramatic turnaround from the previous year's negative €283 million. This strong financial performance was driven by enhanced results across multiple divisions, particularly noting improvements in the wind energy subsidiary Siemens Gamesa and positive developments in Grid Technologies and Industry Transformation sectors.

Market Response and Future Outlook

Despite experiencing a significant 20% stock price decline at the week's start, the company's shares showed signs of recovery in after-hours trading, gaining 2% following the announcement of these strong quarterly results. While order intake decreased by 10.2% to €13.67 billion, it still exceeded market expectations of €12.76 billion. The company has indicated that it will likely surpass its previous forecast for free cash flow before taxes, which was set at up to €1 billion for the current fiscal year, with an updated guidance expected in the upcoming half-year report.