Siemens reported record orders and stronger-than-expected profit for its fiscal fourth quarter on Thursday and raised its medium-term growth targets, as demand from artificial intelligence data centres and large rail contracts powered its industrial businesses.
Orders surged 58 percent to a quarterly record of 34.77 billion euros in the three months to September 30, while revenue rose 11 percent to 23.68 billion euros, beating forecasts of 23.39 billion euros. Industrial profit jumped 22 percent to a record 3.89 billion euros, above the 3.71 billion euros analysts had expected, and net income climbed 32 percent to 2.4 billion euros. The order backlog reached 143 billion euros.
The jump in orders was fuelled by large contract wins at the Mobility division, where order intake more than quadrupled on major rail deals including a 2.4 billion euro high-speed train order in Germany, and at Smart Infrastructure, which supplies data centres. Siemens said it was seeing sharply higher order intake in electrification and electrical products, including large contracts from data centre customers mainly in the United States and Europe.
For the full fiscal year, orders reached a record 108.2 billion euros, up 25 percent on a comparable basis, and revenue was 83.4 billion euros, up 8 percent. Industrial profit climbed 13 percent to a record 13.3 billion euros, while net income of 9.5 billion euros was below the previous year's 10.4 billion euros, which had included a 2.1 billion euro gain from the sale of Innomotics. Free cash flow reached a record 12.1 billion euros, and Siemens proposed raising its dividend to 5.50 euros per share, up from 5.35 euros.
Siemens raised its medium-term target for comparable annual revenue growth to 7 to 11 percent, up from 6 to 9 percent, and guided for 9 to 11 percent growth in fiscal 2027. The company also confirmed plans to spin off part of Siemens Healthineers, distributing one Healthineers share for every two Siemens shares held, transferring 34.1 percent of its stake to shareholders.
