Expansion persists for Siemens
Siemens Reports Moderate Revenue Growth in Q3 2024/25, Digital Industries Division Faces Challenges
Siemens, the German engineering giant, has announced its financial results for the third quarter of the 2024/25 fiscal year, which ended in June 2025. The group's revenues increased by 3% to nearly €19.4 billion, with a comparable basis growth of 5%[1]. The company confirmed its forecast for the full 2024/25 fiscal year, expecting comparable revenue growth of 3% to 7% and earnings per share (EPS) before certain purchase price effects between €10.40 and €11.00[1][2].
In the Digital Industries division, revenues continued to decline, mainly due to weaknesses in the software business[1]. However, automation sales within the division rose for the first time since Q4 of the previous fiscal year, driven largely by growth in China[1]. The company anticipates that Digital Industries will see a revenue development in the lower half of the range from -6% to +1% and expects its margin forecast to be closer to the lower half of its prior guidance range for this segment[2].
The decline in Digital Industries was partly attributed to the absence of previously recorded licensed software contract benefits in the comparable quarter last year[1]. Operational performance results in the industrial business fell 7% to €2.8 billion, influenced by restructuring costs in automation and weaker software performance[1].
Despite the challenges faced by the Digital Industries division, Siemens' full-year outlook remains optimistic, supported by strength in smart infrastructure and Siemens Healthineers businesses[1]. After taxes, net income rose by over five percent to over €2.2 billion, with Siemens benefiting from the sale of a stake in airport logistics[1][2]. However, this figure does not include the impact of the sale, as it was not part of the forecast.
The forecast does not include earnings per share effects related to the acquisitions of Altair and Dotmatics, as well as the sale of the drive business Innomotics[1][2]. The growth was driven by the business with intelligent infrastructure and the medical technology subsidiary Siemens Healthineers[1][2].
In conclusion, Siemens experienced moderate overall revenue growth in Q3 2024/25 with a continued decline in its Digital Industries division, mostly because of its software segment, though automation sales showed early recovery signs[1][2]. The company's current position remains a hold in the DAX. The figures presented by Siemens were solid, and the company is expected to continue its growth trajectory in the coming quarters.
[1] Siemens AG, Q3 2024/25 Results Press Release, www.siemens.com/press/en/2025/q3-results.html
[2] Reuters, Siemens confirms 2024/25 forecast, expects Digital Industries to underperform, www.reuters.com/business/siemens-confirms-202425-forecast-expects-digital-industries-underperform-2025-07-27/
- The decline in revenue for Siemens' Digital Industries division, particularly in the software business, held back the overall growth of the company's revenues in Q3 2024/25.
- Despite the challenges faced by the Digital Industries division, the strength in smart infrastructure and Siemens Healthineers businesses boosted Siemens' overall financial performance in Q3 2024/25, contributing to the company's optimistic full-year outlook.
