Siemens Energy’s results of the third quarter were impacted by charges at Siemens Gamesa. These relate mainly to quality issues of certain onshore platforms as well as increased product costs and ramp-up challenges in the offshore business.
Siemens Energy continues to benefit from a favorable market environment. Orders of €14.9bn reflect 54.2% growth on a comparable basis (excluding currency translation and portfolio effects), primarily driven by large orders at Siemens Gamesa and Grid Technologies (GT). The Book-to-bill ratio (ratio of orders to revenue) came in at 1.98 and led the order backlog to a new record of €109.0bn.
Revenue increased by 8.0% on a comparable basis to €7.5bn.
Profit before Special items of Siemens Energy was negative with €2,048m (Q3 FY 2022: negative €222m) driven by above mentioned charges at Siemens Gamesa totaling €2.2bn. Profit before Special items at Gas Services (GS), GT, and Transformation of Industry (TI) sharply increased compared to the prior-year quarter, driven by continued strong operational performance.
Special items declined to negative €41m (Q3 FY 2022: negative €259m) as the prior-year quarter was heavily burdened by Russia-related charges. Profit for Siemens Energy was negative with €2,089m (Q3 FY 2022: negative €481m).
Siemens Energy reported a Net loss of €2,931m (Q3 FY 2022: Net loss €564m), including negative tax effects from valuation allowances on deferred tax assets in connection with the charges at Siemens Gamesa. Corresponding basic earnings per share (EPS) were negative €3.42 (Q3 FY 2022: negative €0.58).
Free cash flow pre tax improved to positive €27m from negative €25m in the prior-year quarter.
In light of the developments at Siemens Gamesa, management adjusts the outlook for Siemens Energy. Due to the aforementioned challenges at Siemens Gamesa, management now expects for Siemens Energy Group comparable revenue growth to be in a range of 9% to 11%, a Profit margin before Special items between negative 10% and negative 8% and a Net loss of around €4.5bn. Free cash flow pre tax now is expected up to a negative low triple-digit million € amount. Management maintains its revenue and Profit margin assumptions for the segments GS, GT, and TI.
Christian Bruch, President and CEO of Siemens Energy AG:
“Our third-quarter results demonstrate the challenges in turning around Siemens Gamesa. The strong performance of our other business areas gives me confidence in our company’s ability to put businesses back on a strong footing.”
Please read the complete Earnings Release:
Earnings Release Q3 FY 2023: Serious ramp-up challenges in the wind business overshadow excellent performance in conventional energy business
Outlook
Overall assumptions for the segments GS, GT, and TI for fiscal year 2023 remain unchanged as follows:
GS plans to achieve a comparable revenue growth (excluding currency translation and portfolio effects) of 10% to 12% and a Profit margin before Special items between 9% and 11%.
GT plans to achieve a comparable revenue growth of 12% to 14% and a Profit margin before Special items between 6% and 8%.
TI plans to achieve a comparable revenue growth of 8% to 10% and a Profit margin before Special items between 3% and 5%.
Siemens Gamesa adjusts revenue and Profit assumptions for fiscal year 2023 and now assumes comparable revenue growth of negative 3% to 0% (previously positive 6% to positive 10%) and a negative Profit before Special items around €4.3bn. In addition to the aforementioned charges, the assumptions for Siemens Gamesa reflect lower profit contributions from the execution of its current order backlog mainly related to increased product costs and continued ramp-up challenges in the offshore activities.
Accordingly, the fiscal year 2023 outlook for Siemens Energy had to be adjusted. We now expect for Siemens Energy comparable revenue growth to be in a range of 9% to 11% (previously 10% to 12%) and a Profit margin before Special items between negative 10% and negative 8% (previously around the low end of the guidance range of positive 1% to positive 3%). Net loss of Siemens Energy Group now is expected to be around €4.5bn (previously expected to exceed prior fiscal year’s level of €712m by up to a low-triple-digit million € amount). We now expect a Free cash flow pre tax for fiscal year 2023 up to a negative low triple-digit million € amount (previously positive up to a low triple-digit million € amount).
The outlook for Siemens Energy assumes no major negative financial impacts from COVID-19 or other pandemic related events, no further deterioration in the supply chain and raw material cost environment, and excludes charges related to legal and regulatory matters.

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