The AI data centers’ hunger for electricity drives business at Siemens Energy. This is how the quarterly figures turned out.
This demand in particular led to record incoming orders in the second quarter of the financial year, said the group, which after two and a half years of mostly rising share prices is now one of the most valuable companies in Germany. The Iran war has so far only had a minor impact on the company and problem child Gamesa is close to breaking even.
Siemens Energy had already reported in April based on preliminary figures that business was going well and raised its forecast. The group has now confirmed these figures: Profit after taxes rose by two thirds compared to the same period last year to 835 million euros, sales from 10 to 10.3 billion and order intake from 14.4 to 17.7 billion euros. Siemens Energy wants to make a profit of around 4 billion euros by the end of the financial year on September 30th.
In a weaker environment, the DAX-listed share ultimately lost 5.05 percent to 169.48 euros. The fact that Siemens Energy wants to accelerate its share buyback program and spend up to a billion euros more in the current financial year did not support the prices. The company is sticking to the total volume of 6 billion euros by 2028 for the time being. In addition, the share has been one of the stocks that has risen the most in the past – this year it has already increased by a good 45 percent, even if the price gains in the past few weeks have been rather manageable.
Market environment “very positive”
“The market environment in which we operate remains very positive despite geopolitical uncertainties,” says Siemens Energy boss Christian Bruch. “This is reflected in another very strong quarter and a convincing first half of the year. The fact that we are raising the outlook shows our conviction that this development will continue.”
Even the crisis-hit subsidiary Siemens Gamesa, which has repeatedly dragged the entire group into the red in the past, is making progress on its way to profitability. In the past quarter it only reported a loss of 39 million euros. A year ago it was more than half a billion euros. CEO Bruch assumes that Gamesa will be in the black for the first time in a long time in the fourth quarter, which runs from July to September.
Iran war has little financial impact
Although Siemens Energy is also active in the Middle East, the Iran war has not had a major impact so far, says Bruch, who was there recently. It is an uneasy feeling when you get the message at the hotel to go to a safe place. Financially, the consequences have so far been negligible. Systems managed by Siemens Energy have not yet been hit and incoming orders from the region have continued.
The biggest profit generators in the second quarter were once again the Gas Services and Grid Technologies (network technology) divisions, each with profits of more than half a billion.
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MUNICH (dpa-AFX)
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