Siemens Energy successfully completed its fiscal year 2025, achieving or overachieving all its previously raised financial targets. In a year marked by relatively subdued global economic growth, the energy technology sector remained highly attractive, and Siemens Energy delivered a resilient performance across its businesses. Driven by strong growth in all segments, orders reached €58.9 billion (+19.4% on a comparable basis to 2024), revenue came in at €39.1 billion (+15.2%), leading to a Profit margin before Special items of 6% (Profit before Special items at €2.355 billion).
Siemens Energy’s Net income was €1.685 billion (2024: €1.335 billion). Siemens Energy is proposing a dividend for fiscal year 2025 of €0.70 per share, reflecting 50% of the group’s net income attributable to shareholders of Siemens Energy AG, adjusted for extraordinary non-cash effects. The company furthermore upgraded its mid-term targets for fiscal year 2028, now targeting a Profit before Special items range between 14% to 16% and a compound annual revenue growth on a comparable basis in the low-teens percentage range.
Christian Bruch, President and CEO of Siemens Energy, summarizes the fiscal year: “2025 was a successful year. We delivered sustainable growth and significantly improved profitability, increasing the company’s value. For the first time in four years, we’re returning to dividend payments, which is a clear commitment to our shareholders. This success was hardearned by our employees and gives us the momentum and conviction to raise our mid-term targets through 2028, reflecting our positive outlook for the energy market.”
A year of achievements and improvements
Siemens Energy accomplished significant achievements in fiscal year 2025, delivering on its commitments and generated profitable, sustainable growth. The wind business Siemens Gamesa made progress in its quality improvement and cost optimization and the relaunch of the revised
5.X onshore platform. Siemens Energy replaced, ahead of schedule, the €11 billion guarantee facility backed by the German federal government counter-guarantee, with a €9 billion facility resulting in a release of the restriction on dividend payments from 2025 onwards. It was also followed by an inaugural investment-grade credit rating from Moody’s Ratings in June (Baa2 with positive outlook), and an upgrade to a positive outlook for its rating from S&P in May.
Global demand for electricity drove decisions for major investments of up to €2 billion, including €220 million in the Nuremberg transformer factory and brownfield investments in U.S. capacity, in India, Croatia, Austria, Saudi-Arabia, Brazil and others. Siemens Energy also sharpened its portfolio, especially in the wind business Siemens Gamesa. The business sold its power electronics business to ABB in December and sold 90% of its wind business in India and Sri Lanka to a group of investors led by TPG in March 2025. Both transactions are still subject to closing, which is expected to take place during the first quarter of fiscal year 2026.
All businesses delivered strong operational performance in Fiscal Year 2025
With order intake of €58.9 billion, order backlog reached another new record of €138 billion, with further improvement in the margin quality. Gas Services particularly contributed to the growth with a 42.9% comparable increase from last year and sold 194 gas turbines. Grid Technologies saw high demand in the US product business, pushing orders above €21 billion. Siemens Gamesa’s orders increased again after a sales stop last fiscal year caused a significant reduction.
Revenue increased by 15.2% on a comparable basis to €39.1 billion, with all segments contributing to this growth, slightly exceeding the group outlook (13% - 15%).
Profit before Special items came in at €2.355 billion (FY 2024: €345 million), with all businesses contributing, led by an extraordinary increase at Grid Technologies, driven by a shift toward more short-cycle product business. Gas Services ended at a record of almost €1.6 billion and Transformation of Industry saw strong contributions from Industrial Steam Turbine and Generators, as well as Compression. All segments met or exceeded their assumptions for the fiscal year.
The Profit margin before Special items of 6% came in at the upper end of the guided range of 4% to 6%. Free cash flow pre tax increased to €4.663 billion, more than doubling from last year and exceeding the adjusted guidance of around €4 billion. Positive cash flow from other areas supported overall group performance led by Gas Services and Grid Technologies, despite headwinds in Siemens Gamesa. The Net income of Siemens Energy was €1.685 billion (FY 2024: € 1.335 billion). Further details and the figures for the fourth quarter can be found in the appendix.
Successful business development and electricity market growth drive new targets
The market environment remains attractive going forward. Global demand for electricity will continue to rise, driven by a growing population and rising living standards, increasing electrification, as well as datacenters, driven by developments in artificial intelligence. Estimates project that global electricity demand will increase by around 45% between now and 2035.
This growth is also reflected in Siemens Energy’s outlook for the 2026 fiscal year and beyond. For fiscal year 2026, Siemens Energy expects comparable revenue growth in the range of 11% to 13% and a Profit margin before Special items between 9% and 11%. Furthermore, a Net income in the range of €3bn to €4bn and a Free cash flow pre tax in the range of €4bn to €5bn are anticipated. The assumed increase in profitability includes Siemens Energy’s expectation that Siemens Gamesa will reach break-even. Assumptions for each business area, and more details are found in the appendix.
Due to the continued good market outlook and Siemens Energy’s structural and operational progress, Siemens Energy upgraded its mid-term growth and profitability targets for fiscal year 2028. Siemens Energy now intends to achieve a compound annual revenue growth on a comparable basis in the low-teens percentage range until fiscal year 2028. For the Profit margin in fiscal year 2028, Siemens Energy is targeting a range between 14% to 16%.
Maria Ferraro, CFO of Siemens Energy, says: "We are proud of the progress we have made so far, but we know that past performance does not drive future returns. Our focus is firmly on creating sustainable value for our shareholders and delivering profitable growth. We worked hard to strengthen our balance sheet and have a strong financial foundation. The ambitious targets we have set underscore our commitment and position us to capitalize on the strong market environment ahead."
