Siemens Expects Its Industrial Business To Continue Profitable Growth: Details

Siemens AG (OTC: SIEGY) reported Q4 FY23 revenue growth of 4% Y/Y (+10% Y/Y on a comparable basis) to €21.4 billion.

In USD, revenue stood at $23.2 billion, beating the consensus per Reuters.

Orders remained flat Y/Y (+6% Y/Y on a comparable basis) to €21.8 billion, led by higher volume from large orders in Mobility and growth in Siemens Healthineers and Smart Infrastructure.

Profit Industrial Business rose 7% Y/Y to €3.38 billion. Also, margins expanded to 16.5% from 16.2% a year ago.

Basic EPS stood at €2.17 vs. €3.39 in the prior year. EPS before purchase price allocation (PPA) was €2.34.

Siemens Energy Investment witnessed a loss of €(0.2) billion in the quarter. The company generated €4.6 billion in free cash flow.

Siemens proposed to raise the dividend per share to €4.70 from €4.25 a year ago.

"Fiscal 2023 was a year of multiple records: In our Industrial Business, profit and profit margin reached their highest levels ever, and we nearly doubled our net income to a historic high...Our strategy is paying off, and we continue to accelerate the digital and sustainability transformations of our customers," said Roland Busch, President and CEO.

FY24 Outlook: Siemens expects guidance of comparable revenue growth (net of currency translation and portfolio effects) of 4% to 8% and a book-to-bill ratio above 1.

Siemens projects EPS pre-PPA excluding Siemens Energy Investment of €10.40 to €11.00 in FY24.

The company anticipates Digital Industries' comparable revenue growth of 0% to 3%, with a profit margin of 20% to 23%. 

Smart Infrastructure's comparable revenue growth of 7% to 10% and a profit margin of 15% to 17%. 

The company sees Mobility's comparable revenue growth of 8% to 11% and a profit margin of 8% to 10%.

Siemens expects its Industrial Business to continue its profitable growth.

Price Action: SIEGY shares closed higher by 1.32% at $75.15 on Wednesday.