- Record Revenue Growth: FY2025 revenue reached €40 billion, up 40% since 2020 listing, with Q4 revenue hitting €10.4 billion (+9.7% YoY).
- Profit Margin Expansion: Pre-special items profit margin improved 1,500 bps since FY2023 to 8.1% in FY2025, with Q4 profit at €471 million vs. -€83 million prior year.
- Strong Free Cash Flow: Generated €2.4 billion in FY2025 free cash flow, including €1.3 billion in Q4, driven by operational efficiency.
- Order Backlog Surge: Backlog rose 75% to €138 billion, with a book-to-bill ratio of 1.51, fueled by 94% growth in Gas Services orders.
- Ambitious 2026–2028 Targets: Aims for 14–16% profit margin by FY2028 (up 400 bps from current guidance) and 11–13% revenue growth in FY2026.
Segmental Performance
The company's segments performed well, with Grid Technologies having a record year, with Q4 orders of $6.9 billion, up 31% year-over-year, and revenue growing 19% to $3.1 billion. Transformation of Industry also had a record year, with Q4 revenue growing 20% to $1.6 billion. Siemens Gamesa finished fiscal year '25 in line with expectations, despite headwinds from tariffs.
Guidance and Outlook
Siemens Energy has set ambitious targets for fiscal year 2026, with a profit margin before special items of 9-11% and revenue growth between 11-13%. For fiscal year 2028, the company aims for a low teens percentage range revenue growth and a profit margin before special items of 14-16%. The guidance for next year assumes some headwinds but expresses confidence in handling them.
Valuation Metrics
With a P/E Ratio of 100.48 and an EV/EBITDA of 21.58, the market is pricing in high expectations for Siemens Energy. The company's ROE is 9.8%, and ROIC is 6.18%. The dividend yield is currently 0.0%, but the company has proposed a dividend of €0.70 per share for fiscal year 2025. Analysts estimate next year's revenue growth at 8.7%.
Operational Highlights
The company reported 11 gigawatts of new reservations in the quarter, driven by the U.S. and Saudi Arabia. The service business in Gas Services grew 15% in 2025, driven by long-term agreements and transactional business. Gas turbine pricing showed a slight improvement throughout 2025. Christian Bruch noted that the nuclear market is a twofold business, with a service market for large turbines and Small Modular Reactors (SMRs) with Rolls-Royce, a long-term project expected to realize around 2030.