Q3 2025 Siemens AG Earnings Call Transcript

Aug 07, 2025 / 07:30AM GMT

Transcript

Key Points

Positve

Siemens AG (SIEGY) successfully integrated the industrial drive technology business from ebm-papst, enhancing its portfolio in growth markets like driverless transport systems.
The company opened an advanced factory and service center in Munich, showcasing competitive manufacturing capabilities in Germany.
Siemens AG (SIEGY) achieved a major milestone with a EUR3.5 billion order for Egypt's rail system, significantly impacting sustainability by reducing carbon emissions.
The company reported strong cash conversion in both automation and software, leading to an excellent free cash flow of over EUR1.1 billion.
Siemens AG (SIEGY) maintained a robust balance sheet, enabling strategic acquisitions like Altair and Dotmatics, and continued shareholder-friendly capital allocation through share buybacks.

Negative

Digital Industries (DI) software business faced a decline due to tough comparisons with the previous year's strong performance, including seven large software license deals.
Automation orders were flat sequentially, with ongoing tariff uncertainties and trade tensions dampening further acceleration of recovery.
The software business experienced a 30% decline due to temporary trade restrictions on EDA with China, impacting revenue and profit.
Siemens AG (SIEGY) anticipates material severance charges north of EUR200 million in the fourth quarter related to capacity adjustments in Germany.
The company faced challenges in the automation market with muted economic conditions in Germany and cautious investment sentiment in key industries like automotive and machine tools.

Roland Busch

Siemens AG - Chairman of the Management Board, President, Chief Executive Officer

(audio in progress) AI-powered software offering for life science than expected. And we are strengthening our portfolio of intelligent hardware by integrating the industrial drive technology business acquired from ebm-papst. This move enables us to tap into growth markets like free-moving, battery-powered driverless transport systems. With the support -- with the successful listing of the energy business in India, we've paved the way for streamlining our company structure as promised. And this will empower our business to succeed independently and grow faster.

And in Munich, we opened the expansion of one of Europe's most modern trained factories and service centers. This site is a testament to how competitive and successful manufacturing in Germany can be. Highly skilled employees are using cutting-edge technologies, maximum automation and digitalization to deliver superior products and digital services.

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