Siemens’ financial performance in the fourth quarter
Siemens recently released its fourth-quarter results, showing significant growth despite market challenges. Orders showed an increase of 10% on a comparable basis, reaching 22.9 billion euros.
Revenues also increased, albeit modestly, by 2%, to 20.8 billion euros.
Analysis of annual results
Looking at the full fiscal year, Siemens recorded a 3% increase in comparable revenues, while comparable orders declined by 4%. In nominal terms, annual revenues grew by 1% to 75.9 billion euros, while orders fell by 6% to 84.1 billion euros. Despite these fluctuations, net income reached an all-time high of 9 billion euros, with earnings per share (EPS) of 10.53
euros.
Dividend and financial strength
In response to these results, Siemens announced a dividend increase from 4.70 euros to 5.20 euros per share, a clear sign of the company’s financial strength. This increase in the dividend is particularly significant in a context of decreasing orders on an annual basis, demonstrating resilience and the ability to generate positive cash flows. Cash generation was exceptional, with a Free Cash Flow of 5 billion euros.
Economic context and external impacts
The European economic environment showed signs of growth, with Eurozone GDP increasing by 0.4% in the third quarter of 2024. However, uncertainties related to U.S. trade policies continue to negatively affect global markets. In this scenario, companies like Foxconn Technology Group have exceeded expectations, highlighting how demand for technology, especially in the AI sector, is driving growth
.
Conclusions on Siemens’ results
In summary, Siemens’ financial results for the fourth quarter and the full fiscal year show robust performance despite external challenges. The increase in the dividend and record net profit are key indicators of the company’s financial health, suggesting that Siemens is well positioned to face future uncertainties and continue to grow in the global market
.