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Siemens Energy Reports Strong Q1 Results

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4.8

Andrew R. Michaud

• January 24, 2024

Siemens Energy, the German energy company, has exceeded expectations in its first quarter with an increase in profitability, orders, and revenue. As a result, shares in the company have seen a significant jump.

Positive Performance

The company's orders and revenue surpassed consensus by 24% and 4% respectively, according to analysts at JPMorgan. They also noted that Siemens Energy had achieved an impressive margin performance in its gas services and transformation of industry businesses.

This strong start to the year has boosted confidence in the company's guidance and positioned it well to handle any potential challenges that may arise in the future.

Favorable Cash Flow

Citi analysts pointed out that Siemens Energy's pre-tax cash outflow of EUR283 million is a positive outcome. This reduces the risk of higher-than-expected year-end net debt and the need for an equity raise.

Impressive Financials

Siemens Energy reported a pre-special item profit of 208 million euros ($225.8 million) in the period. This is a significant improvement compared to a loss of EUR282 million in the previous year. Meanwhile, the company's revenue grew by 13% to reach EUR7.65 billion.

Furthermore, Siemens Energy's profit before special items margin came in at 2.7%, surpassing expectations of a negative 1.4% margin.

Overall, these results demonstrate Siemens Energy's strong performance and set a positive tone for the year ahead.