Company Reports

Siemens is a disparate portfolio of high-quality businesses across various sectors. The Siemens Energy spinoff has sharpened returns and lowered cyclicality, while ongoing monetization of the Siemens Healthineers stake to fund software acquisitions raises questions about the long-term role of the remaining holding. All its businesses have strong product portfolios to compete in long-term, attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.

Siemens reported 25% growth year over year in industrial profit to EUR 3.5 billion during the third quarter, comfortably exceeding company-compiled consensus of EUR 3.2 billion. Full-year EPS guidance was raised by 4% at the midpoint of EUR 11.35. Shares are trading 5% lower intraday.

Siemens reported 6% organic revenue, driven by double-digit growth in software sales and electrical equipment used by data center and semiconductor customers, despite prevailing tariff headwinds in the Mobility and Healthineers segments. It confirmed full-year guidance despite segmental revisions.

Siemens is a disparate portfolio of high-quality businesses across various sectors. The Siemens Energy spinoff has sharpened returns and lowered cyclicality, while ongoing monetization of the Siemens Healthineers stake to fund software acquisitions raises questions about the long-term role of the remaining holding. All its businesses have strong product portfolios to compete in long-term, attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.

Siemens reported 10% organic order growth during the first quarter and a 15% increase in operating profit, comfortably exceeding company-compiled consensus. The midpoint of its full-year EPS guidance was raised to EUR 10.90 from EUR 10.70. Shares are trading 6% higher intraday Feb. 12.

Siemens is a disparate portfolio of high-quality businesses across various sectors. The Siemens Energy spinoff has sharpened returns and lowered cyclicality, while ongoing monetization of the Siemens Healthineers stake to fund software acquisitions raises questions about the long-term role of the remaining holding. All its businesses have strong product portfolios to compete in long-term, attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.

Siemens reported 6% organic order growth during fiscal 2025, with positive momentum emerging during the fourth quarter from a cyclical recovery in industrial automation markets. Results coincided with the announcement of new medium-term targets and the intention to deconsolidate Healthineers.

Siemens is a disparate portfolio of high-quality businesses across various sectors. The Siemens Energy spinoff has sharpened returns and lowered cyclicality, while ongoing monetization of the Siemens Healthineers stake to fund software acquisitions raises questions about the long-term role of the remaining holding. All its businesses have strong product portfolios to compete in long-term, attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.

Siemens reported 5% organic revenue growth and a 7% operating profit decline in its fiscal third quarter. Lower software sales, which are also higher-margin, against a high comparable mitigated growth across the other segments. The shares are trading 4% higher intraday on Aug. 7.

Siemens exceeded company-compiled consensus across the board during the second quarter, underpinned by strong growth in the mobility segment and a 17% increase in orders from China. Full-year guidance was kept unchanged.

The US government has imposed a 20% tariff on European goods, sending equity markets down. Shares of European electrical equipment suppliers are trading 5% lower. Importantly, the United States-Mexico-Canada Agreement signed by President Donald Trump during his first term remains intact.

Siemens is a disparate portfolio of high-quality businesses in different sectors. The spinoff of its cyclical energy and wind turbine divisions has enhanced the group’s return profile and provides more durable returns than in the past. Further deconsolidation appears unlikely. All its businesses have strong product portfolios to compete in long-term attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.

The US government has threatened to impose 25% tariffs on imports from the European Union, having already implemented tariffs on Canada, Mexico and China.

Shares in Siemens are trading 6% higher intraday after comfortably beating FactSet consensus in order intake, revenue, and industrial profit during the first quarter.

Siemens hosted a capital markets day for its smart infrastructure segment, raising its medium-term revenue and operating margin outlook for the division.

Wide-moat Siemens reported a strong close to fiscal 2024, beating company-compiled consensus across most operating metrics during the fourth quarter. Fiscal 2025 guidance for revenue growth of 3%-7% is in line with our estimate of 6%, underpinned by secular growth themes in the smart infrastructure segment and a healthy backlog in the mobility division, helping to mitigate ongoing weakness in the automation business. We maintain our EUR 198 fair value estimate. While we view the shares as slightly undervalued, our preferred pick in the sector is Schneider Electric.

We’re raising our fair value estimate for wide-moat Siemens by 10% to EUR 198 from EUR 180. Siemens' broad portfolio of equipment and software solutions used by building and utility end markets is an enabler of decarbonizing the power sector and buildings, which collectively contribute half of global greenhouse emissions. We assume 7% annualized EPS growth through 2028, which, given the group’s conglomerate status, comprising many other businesses beyond electrification, underperforms our preferred pick, Schneider Electric. Our revised fair value estimate implies a P/E multiple of 19 times on fiscal 2024 earnings, which we believe is appropriate given Siemens' robust outlook and competitive advantages. Shares screen as slightly undervalued, but we would recommend a greater margin of safety.

Siemens is a disparate portfolio of high-quality businesses in different sectors. The spinoff of its cyclical energy and wind turbine divisions has enhanced the group’s return profile and provides more durable returns than in the past. Further deconsolidation appears unlikely. All its businesses have strong product portfolios to compete in long-term attractive end markets that benefit from the secular growth trends of digitalization and the energy transition. In addition, its installed base of long-life industrial equipment requires a constant stream of aftermarket upgrades and maintenance, underpinning its high-single-digit earnings growth ambition.

Siemens announced the acquisition of industrial software provider Altair for $10.6 billion, the largest in the group’s history. The acquisition is consistent with Siemens’ strategy, complementing its existing product lifecycle management and electronic design automation software, and strengthens its leadership position in industrial software. We believe the acquisition supports our wide moat rating for Siemens and will further strengthen customer switching costs, but the valuation does appear rich at first glance. We maintain our EUR 180 fair value estimate.

We’re maintaining our EUR 180 fair value estimate following wide-moat Siemens’ strong third quarter, delivering solid organic revenue growth in line with company-compiled consensus and an 11% increase in operating profits, which was ahead of expectations. Robust performance was underpinned by its electrification and software subsegments, offsetting continued weakness in automation. While full-year guidance was maintained, management now expects the lower end of its 4%-8% organic revenue growth to be achieved due to weakness in the digital industries segment, which is consistent with our forecasts. Shares are marginally undervalued.