Q2 2025 Siemens AG Earnings Call Transcript
Key Points
- Siemens AG (SIEGY) reported a robust top-line performance with a book-to-bill ratio of 1.1, supported by a high-quality order backlog of EUR117 billion.
- Group orders increased by 9% year-over-year, reaching EUR21.6 billion, driven by strong performances in Mobility and Healthineers.
- Revenue growth was 6%, with significant contributions from Mobility and Smart Infrastructure, particularly in the electrification business.
- The company achieved an operational profit margin of 15.3% in its Industrial business, excluding divestment gains, and generated EUR2.1 billion in free cash flow.
- Siemens AG (SIEGY) confirmed its group outlook for fiscal year 2025, despite rising macroeconomic and geopolitical uncertainties, and continues to focus on innovation and customer-centric growth strategies.
- Investment sentiment in core industries such as automotive and machine building remains soft, particularly in export-driven markets like Germany.
- The software business experienced a modest decline due to fewer large orders in the EDA segment, impacting overall revenue growth.
- Rising tariffs and trade tensions pose risks to further recovery in important customer industries, affecting investment sentiment.
- Siemens Healthineers faced significant headwinds on profits, with expected impacts of EUR200 million to EUR300 million.
- The company anticipates material severance charges in the second half of fiscal 2025, which could weigh on profit margins.
Good morning, ladies and gentlemen, and welcome to Siemens 2025 Second Quarter Conference Call. As a reminder, this call is being recorded. Before we begin, I would like to draw your attention to the safe harbor statement on Page 2 of the Siemens presentation. This conference call may include forward-looking statements. These statements are based on the company's current expectations and certain assumptions and are therefore subject to certain risks and uncertainties.
At this time, I would like to turn the conference over to your host today, Mr Tobias Atzler, Head of Investor Relations. Please go ahead.
Thank you. Good morning, ladies and gentlemen, and welcome to our Q2 conference call. All documents were released this morning and can be found also on our IR website. I'm here today with our CEO, Roland Busch; and our CFO, Ralf Thomas, who will review the Q2 results. After the presentation, we will have time for Q&A.
With that, I hand it over to you, Roland.
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