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Siemens Energy (SMEGF)
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Siemens Energy (SMEGF) AI Stock Analysis

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Siemens Energy (SMEGF) vs. SPDR S&P 500 ETF (SPY)

Siemens Energy Business Overview & Revenue Model

Company DescriptionSiemens Energy AG operates as an energy technology company worldwide. It operates in two segments, Gas and Power; and Siemens Gamesa Renewable Energy. The company provides gas and steam turbines, generators, gas engines, instrumentation and controls, and electrical systems, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and transformers, air and gas-insulated switchgears, AC transmission systems, offshore windfarm grid connections, high voltage direct current transmission systems, high voltage substations, digital solutions and components, and other products. It also offers rotating equipment that includes industrial and aero-derivative gas turbines, turbo- and reciprocating compressors, power generation products, and compression trains and modules, as well as solutions in the fields of electrification, automation and digitization, plant safety, plant security, and water treatment. In addition, the company develops technologies in the fields of decarbonized energy and storage systems. Further, it offers onshore wind turbine design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms. The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. Siemens Energy AG was founded in 1866 and is based in Munich, Germany.
How the Company Makes Money

Siemens Energy Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q2-2025)
|
% Change Since: 22.06%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with significant improvements across key financial metrics, leading to raised guidance for the fiscal year. However, potential tariff impacts and ongoing challenges in Siemens Gamesa's onshore wind business present notable concerns.
Q2-2025 Updates
Positive Updates
Record Order Backlog
The order backlog reached a new record high of EUR 133 billion, with a book-to-bill ratio of 1.45, reflecting strong market demand and effective operational performance.
Significant Revenue Growth
Revenue for the quarter was EUR 10 billion, reflecting a growth of just over 20% compared to the prior year, driven by strong performance across all segments.
Raised Full-Year Guidance
Guidance for the full fiscal year 2025 was raised across all KPIs: growth, margin, net income, and cash flow, reflecting the company's strong performance and market conditions.
Gas Services Expansion
Gas Services reported its highest order intake in history, with orders of EUR 7 billion, more than doubling from the previous year.
Improved Profit Margins
Profit before special items rose to EUR 900 million, with a profit margin of 9.1% for the quarter, an improvement of 700 basis points year-over-year.
Strong Cash Flow
Cash flow of EUR 1.4 billion exceeded expectations, driven by better results, customer payments, and reservation fees, taking cash flow for the first half year to EUR 2.9 billion.
Successful Cost Management
Grid Technologies benefited from significant cost degression and operational improvements, contributing to the overall margin improvement.
Strategic Investments and Partnerships
Siemens Energy entered a partnership with Rolls-Royce for small modular reactors and is expanding production capacities for medium-sized gas turbines.
Negative Updates
Potential Tariff Impact
The outlook for the global economy has become more uncertain due to potential global tariffs, with an estimated limited direct impact of up to a high double-digit million euro impact after mitigation measures.
Challenges in Siemens Gamesa
Siemens Gamesa reported a loss of EUR 249 million before special items, although this marked an improvement year-over-year. The onshore wind business continues to face challenges, with orders affected by temporary interruption of sales activities.
Divestment of Wind Business in India and Sri Lanka
Siemens Gamesa agreed to divest its wind business in India and Sri Lanka, leading to a non-cash impairment charge of EUR 265 million.
Company Guidance
During the Siemens Energy Q2 Analyst Call, the company announced a significant improvement in its fiscal year 2025 guidance across all key performance indicators (KPIs), including growth, margin, net income, and cash flow. Siemens Energy reported a strong quarterly performance, with orders reaching EUR 14.4 billion, a 52.3% increase compared to the previous year, and a book-to-bill ratio of 1.45. The order backlog hit a record high of EUR 133 billion. Revenue grew by over 20% to EUR 10 billion, while profit before special items rose to EUR 900 million, resulting in a profit margin of 9.1%. Cash flow also exceeded expectations, reaching EUR 1.4 billion for the quarter, contributing to a first-half total of EUR 2.9 billion. The company raised its full-year revenue growth outlook to 13% to 15%, up from the previous 8% to 10%, and increased its profit margin expectation by 100 basis points, driven by strong execution and cost efficiencies, particularly in Grid Technologies. Siemens Energy also highlighted a strong demand for its products, with notable orders in the gas services sector and significant contracts in regions like North America and the Middle East. Despite uncertainties surrounding global tariffs, the company remains optimistic about its market position and the resilience of its business model.

Siemens Energy Financial Statement Overview

Summary
Siemens Energy shows strong revenue growth and cash flow generation, although profitability remains a challenge. The balance sheet is healthier with no debt, providing a solid foundation for future growth.
Income Statement
65
Positive
Siemens Energy's revenue has shown a steady growth trajectory with a notable increase in the most recent TTM period. The gross profit margin has improved from the previous periods, indicating better cost management. However, the net profit margin remains negative due to the net loss in the TTM period, highlighting ongoing profitability challenges. The EBIT and EBITDA margins have improved but still reflect the need for operational efficiency improvements.
Balance Sheet
70
Positive
The balance sheet reflects a solid equity position with an improving equity ratio. Siemens Energy's debt-to-equity ratio has significantly improved with zero debt reported in the TTM period, indicating strong financial restructuring. The return on equity has turned negative due to the net loss, which is a concern for shareholder returns. Nevertheless, the company's increasing asset base and substantial cash reserves are positive signs for financial stability.
Cash Flow
75
Positive
Operating cash flow has shown strong growth, indicating robust cash generation capabilities. The free cash flow has also increased significantly, showcasing improved capital expenditure management and cash efficiency. The operating cash flow to net income ratio is high due to net loss, which reflects a strong operational cash flow despite profitability challenges.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
37.44B34.47B31.12B29.00B28.48B27.46B
Gross Profit
5.59B4.50B753.00M3.42B3.42B2.14B
EBIT
707.00M2.13B-3.26B-371.00M-335.00M-1.95B
EBITDA
2.92B3.67B-1.67B1.18B1.07B80.00M
Net Income Common Stockholders
198.00M1.18B-4.53B-646.00M-560.00M-1.86B
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.82B7.25B4.59B8.52B5.92B5.18B
Total Assets
54.94B50.87B47.91B51.17B44.14B43.03B
Total Debt
0.003.77B4.78B3.22B2.73B2.39B
Net Debt
-8.98B-2.60B193.00M-2.74B-2.60B-2.24B
Total Liabilities
44.50B41.51B39.12B33.99B28.92B27.64B
Stockholders Equity
10.12B9.07B8.50B17.19B14.96B14.94B
Cash FlowFree Cash Flow
3.93B1.38B394.00M1.06B959.00M674.00M
Operating Cash Flow
5.48B2.89B1.62B2.22B1.95B1.60B
Investing Cash Flow
-1.52B1.25B-1.63B-1.12B-958.00M-1.04B
Financing Cash Flow
-787.00M-2.26B-1.13B-568.00M-340.00M2.35B

Siemens Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$79.86B365.491.79%
66
Neutral
$4.50B12.295.40%248.66%4.13%-12.33%
$4.84B152.123.02%
€1.62B15.334.78%2.99%
€1.42B12.4011.29%3.17%
€1.42B11.5011.29%3.46%
€171.36B17.5015.14%2.38%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMEGF
Siemens Energy
98.50
73.58
295.26%
NRDXF
Nordex
19.79
5.49
38.39%
GB:0J9C
Durr AG
23.45
1.24
5.58%
GB:0BQD
KSB AG
835.00
170.99
25.75%
GB:0BQE
KSB AG
766.00
134.27
21.25%
GB:0P6M
Siemens
219.05
48.70
28.59%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.