Siemens is a longstanding company originating in Berlin. Its roots stretch back to 1847. At that time, it started operating under the name Telegraphen Bau-Anstalt von Siemens & Halske. It was founded by Werner von Siemens in Berlin, Germany. Today, Siemens stock is a major player in the market.
Currently, the firm operates from two headquarters, one in Munich and the other in its founding city, Berlin. It is a multinational conglomerate, and an industry leader in industrial technology, digital industries, mobility, and more. The company is listed on the Frankfurt exchange under the ticker SIE.DE.
Additionally, the company has formed two affiliates. These are Siemens Energy and Siemens Healthineers. It remains an owner in both affiliates. Specifically, it holds 17% in Siemens Energy and 75% in Siemens Healthineers.
While the main focus of this article is the core company, Siemens AG, its stake in the two affiliates will affect its value. Therefore, we need to include both affiliates at times.
This article will cover everything you need to know about Siemens — recent general company info, recent financial & stock performance, and current exciting developments.
Siemens AG — performance in 2024
From the company’s Financial Report for Fiscal Year 2024, we can learn important insights into the company’s performance and goals. Since Siemens Healthineers remains a majority-owned subsidiary, its performance is included in this report. Siemens Energy, however, is not.
The key data points are:
- Revenue: €75.9 billion, a 3% increase from €74.9 billion in fiscal 2023.
- Orders: €84.1 billion, a 4% decrease from €89.4 billion in fiscal 2023.
- Profit (Industrial Business): €11.4 billion, with a profit margin of 15.5%.
- Net Income: €9.0 billion, up from €8.5 billion in fiscal 2023.
- Free Cash Flow: €9.5 billion at the Group level.
Siemens proposed a dividend-per-stock increase in 2024 up to €5.20 from €4.70.
Its revenue performance was the strongest in the Americas region, increasing by 8%, and weakest in Asia and Australia with a 4% cut. In Europe, it remained stable at €35.3 billion.
At the end of 2024, Siemens AG employed 327,000 people worldwide. Although this is an approximation, it does show an expansion consisting of 7,000 workers compared to the previous year.
Siemens AG’s performance was weak in digital industries, with the company citing lower automation demand for Europe and China as the primary reason.
Other major company segments performed well. These include mobility, smart infrastructure, and Siemens Healthineers. The last two segments stood out especially.
Moreover, Siemens has raised its mid-term profit margin target for infrastructure. It is now targeting 16-20%, up from 11-16%. This change is due to high confidence in its performance.
Future goals and forecasts
Siemens predicts a continuation of its stable 5-7% revenue growth over the next period ranging from three to five years. The company states that the margins in this estimation match competitors in relevant industry segments. It aims for high single-digit EPS (earnings per Siemens stock) growth over the same period. For 2025, the expectation for EPS, excluding its Innomotive sale, falls between €10.40 and €11.00.
As for its segments, Siemens expects:
- Revenue from negative 6% to positive 1% for digital industries, with profit margins ranging from 15 to 19%.
- Revenue from 6% to 9% for smart infrastructure, with profit margins ranging from 17% to 18%
- Revenue from 8% to 10% for mobility, with profit margins also ranging from 8% to 10%.
Solid company performance, industry diversification, and positive macroeconomic environment expectations drive confidence for Siemens AG. The company is quite confident that it will have a strong cumulative performance for 2025.
Recent developments for Siemens
Recently, the company has had a strong showing, with multiple important products, deals, and collaborations. To give you an idea of how the company’s performing at this moment, we’ve outlined three of the most interesting events that highlight the diversity of Siemens’ ventures.
Inspekto acquisition & showcase
Inspekto was originally a start-up adopted by multiple major manufacturers. It was recently acquired by Siemens.
At Global Industrie, a leading French industry event in Lyon, Siemens showcased Inspekto’s capabilities. The tool is meant to recognise defects in industrial equipment without the need for specialised models. The highlight is a simpler user experience, allowing seamless integration into production lines.
It functions by analysing defect-free samples to train its AI model. It’s a constantly growing system, adding any defects it recognisIt functions by analysing defect-free samples.
This helps to train its AI model. Furthermore, it is a constantly growing system. It adds any defects it recognises to its knowledge base.
As a result, its detection capabilities continue to increase. Moreover, the expansion of its knowledge base further enhances these capabilities, thereby boosting detection even more.
Axiom Space Adopts Siemens’ Xcelerator
Axiom Space has adopted software from Siemens’ Xcelerator portfolio to improve the process of developing key space infrastructure. The focus will be on developing Axiom Space’s next-generation spacesuit and space station programs.
The software aims to improve production processes in manufacturing, design, analysis, and operations. One of the primary functions of the software is the capability to create digital threads and twins, as highlighted by Axiom Space.
This will allow it to integrate all phases across its program into a single platform. The aim is to make the transition from idea to reality more seamless and efficient.
OPMobility Implements Siemens’ PLM Software
OPMobility, a leading company in sustainable mobility, has adopted Siemens’ cloud-based PLM software, Teamcenter X. This software also comes from the Xcelerator portfolio. The goal of the software is to improve efficiency, lower project lead times, lead to better cross-team cooperation.
Siemens to manufacture 14MW Offshore Wind Turbine Nacelles in South Korea
On the 11th of March, Siemens and Doosan Enerbility signed an agreement to build a factory capable of producing 14MW wind turbines. The factory will be located in Changwon, South Korea.
The deal includes transferring technology and human resources with accompanying training to enhance South Korea’s wind turbine nacelle production and assembly capabilities.
Siemens’ recent stock performance
Amid broader market concerns and the volatility that follows, Siemens’ stock has been on a steady decline for the past few days. On March 12th, it had a 3.06% single-day dropoff, resulting in a 6.54% cumulative skid. It is also lagging behind broader market performance, with Sensex showing only a slight 0.59% slide.
This slide places the company below its 5, 20, 50, and 100-day moving averages. By all indicators, this performance suggests a short-term bearish market state for Siemens, at least in the near term.
Over the past five years, Siemens has marked a 306.57% increase in its share value. However, year-to-date, it shows a 26.37% decline.
إخلاء مسؤولية: This material is for general informational and educational purposes only and should not be considered investment advice or an investment recommendation. T4Trade is not responsible for any data provided by third parties referenced or hyperlinked in this communication.
