Siemens Energy Stock: Strong Q1 Performance Boosts Outlook

Siemens Energy has kicked off its new fiscal year with impressive momentum, reporting significant financial gains that underscore its robust market position. The company's revenue growth trajectory remains on target, with projections of 8-10% increase maintained for 2024/25. A standout achievement is the free cash flow before taxes, exceeding €1.5 billion due to substantial advance payments on major projects, significantly surpassing initial expectations. This exceptional performance has prompted the company to anticipate exceeding its original annual target of €1 billion, with updated cash flow forecasts expected during the mid-year results presentation in May. The company's adjusted EBITA margin target remains steady at 3-5%.

U.S. Market Momentum

The company's strong presence in the United States, with eight production facilities and 12,000 employees, continues to drive growth, particularly in the gas turbine sector. The U.S. market accounted for half of the 20-gigawatt reservations in the first quarter alone. Despite recent market concerns regarding AI-driven energy efficiency developments and potential trade policy challenges, the company maintains an optimistic outlook, viewing the U.S. market as presenting more opportunities than risks. This confidence is reflected in the stock's positive performance, with shares reaching €58.58 in XETRA trading.