Earnings Release Q2 FY 2022 - Gas and Power with solid performance, disappointing results at SGRE weigh down Siemens Energy Group

May 11, 2022

  • Continuing constraints in global supply chains carried on affecting the business of Siemens Energy, predominantly at Siemens Gamesa Renewable Energy (SGRE), where difficult supply markets amplified the impacts rooting in continued operational problems. As a result, SGRE reported an Adjusted EBITA of negative €301m for the second quarter.
  • The consequences of the war in Ukraine led to initial minor negative effects on the second quarter results of Siemens Energy.
  • Solid orders of €7.9bn included a strong contribution from Gas and Power (GP), resulting in the order backlog climbing to a record of €89.3bn. Compared to the exceptional high prior-year figure, orders came in 27.5% lower for the quarter on a comparable basis (excluding currency translation and portfolio effects).
  • Revenue of €6.6m was slightly down by 1.7% on a comparable basis, as moderate growth at GP was more than offset by a decline at SGRE.
  • Adjusted EBITA for Siemens Energy was negative €77m (Q2 FY 2021: positive €197m) due to the loss at SGRE. In contrast, GP substantially increased its Adjusted EBITA year-over-year. Adjusted EBITA before special items of Siemens Energy was negative €21m compared to positive €288m in prior-year quarter.
  • Siemens Energy’s net loss amounted to €252m (Q2 FY 2021: net income of €31m). Corresponding basic earnings per share (EPS) were negative €0.22 (Q2 FY 2021: positive €0.03).
  • Free cash flow pre tax sharply decreased to negative €351m (Q2 FY 2021: positive €433m) driven by the earnings decline at SGRE while GP delivered a positive contribution.
  • Given SGRE’s adjusted aspiration for fiscal year 2022 and in light of prevailing challenges, management now expects for Siemens Energy for fiscal year 2022 results towards the low end of the guidance ranges for comparable revenue development (negative 2% to positive 3%) and Adjusted EBITA margin before special items (positive 2% to positive 4%).
  • Management notes an increasingly challenging environment and growing uncertainty with regards to the continuation and economic burdens of the war in Ukraine as well as the COVID-19 situation in China and cannot rule out further negative effects associated to an escalation of these factors.


Christian Bruch, President and Chief Executive Officer of Siemens Energy AG:

“Gas and Power delivered a solid performance this quarter. The segment delivered a solid operating result and a strong order intake despite first impacts of the sanctions against Russia and increasing supply chains constraints. Disappointing again is the performance of SGRE which is weighing heavily on Siemens Energy. The situation at SGRE has aggravated further since the last profit warning. As majority shareholder, we provide our expertise to get to the bottom of the problems and to tackle the issues” 

Please read the complete Earnings Release:

Earnings Release Q2 FY 2022 - Gas and Power with solid performance, disappointing results at SGRE weigh down Siemens Energy Group
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For the GP segment in fiscal year 2022, we maintain our guidance for comparable revenue growth (excluding currency translation and portfolio effects) between positive 1% and positive 5%, and Adjusted EBITA margin before special items between positive 4.5% and positive 6.5%. However, in light of prevailing challenges, we expect results towards the low end of the guidance ranges. For fiscal year 2023, we confirm our target of an Adjusted EBITA margin before special items in a range between positive 6% and positive 8%.

Given SGRE’s performance of the first half year and continued internal and external uncertainties, SGRE announced that its previous guidance of a comparable decline of revenue between negative 2% and negative 9% and an Adjusted EBITA margin before special items in a range of negative 4% to positive 1% is no longer valid. According to SGRE, the company cannot provide projections for the second half of the year with the desirable detail and precision but will continue to work to achieve a comparable revenue development within the range of negative 2% and negative 9%, and Adjusted EBITA margin before special items towards the low end of the previous guidance range of negative 4%.

For Siemens Energy we now expect results towards the low end of the guidance ranges for comparable revenue development (negative 2% to positive 3%) and Adjusted EBITA margin before special items (positive 2% to positive 4%). Consequently, we expect Net loss to be level with prior year compared to the previous guidance of a sharp improvement. We confirm expectations for the Free cash flow pre tax to be in a range of a positive mid-triple-digit million €.

Because of the war in Ukraine and the sanctions imposed on Russia the operating environment for Siemens Energy has become more challenging. Siemens Energy is complying with all sanctions and has stopped any new business in Russia. Siemens Energy has started to see an impact on revenue and profitability as a result of the war and is experiencing an aggravation of the existing supply chain challenges. We are currently not able to fully assess the potential impact for the remainder of the fiscal year and can therefore not rule out further negative effects mainly on revenue, profitability and recoverability of assets. In addition, we note a rising impact related to the COVID-19 situation in China.

This guidance assumes no further major financial impacts from COVID-19 on our business activity and excludes charges related to legal and regulatory matters including further negative effects from the war in Ukraine and its economic consequences.

Notes and forward-looking statements

This document contains statements related to our future business and financial performance, and future events or developments involving Siemens Energy that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. We may also make forward-looking statements in other reports, prospectuses, in presentations, in material delivered to shareholders, and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens Energy´s management, of which many are beyond Siemens Energy´s control. These are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in disclosures, in particular in the chapter “Report on expected developments and associated material opportunities and risks” in the Annual Report. Should one or more of these risks or uncertainties materialize, should acts of force majeure, such as pandemics, occur, or should underlying expectations including future events occur at a later date or not at all, or should assumptions not be met, Siemens Energy´s actual results, performance, or achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens Energy neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes supplemental financial measures – that are not clearly defined in the applicable financial reporting framework – and that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens Energy´s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its consolidated financial statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Press Conference


Tim Proll-Gerwe

Siemens Energy 


Siemens Energy is one of the world’s leading energy technology companies. The company works with its customers and partners on energy systems for the future, thus supporting the transition to a more sustainable world. With its portfolio of products, solutions and services, Siemens Energy covers almost the entire energy value chain – from power generation and transmission to storage. The portfolio includes conventional and renewable energy technology, such as gas and steam turbines, hybrid power plants operated with hydrogen, and power generators and transformers. More than 50 percent of the portfolio has already been decarbonized. A majority stake in the listed company Siemens Gamesa Renewable Energy (SGRE) makes Siemens Energy a global market leader for renewable energies. An estimated one-sixth of the electricity generated worldwide is based on technologies from Siemens Energy. Siemens Energy employs around 91,000 people worldwide in more than 90 countries and generated revenue of €28.5 billion in fiscal year 2021.