Siemens Finishes Fiscal Year with Double-Digit Growth

Siemens successfully continued its profitable growth trajectory and set multiple new records in fiscal 2023 (ended September 30). In a record-breaking performance by Siemens’ operating business, revenue for the full year rose 11% on a comparable basis to the upper end of the company’s raised guidance (9% to 11%).

The profit and profitability of the Industrial Business reached new record levels as did net income. Shareholders are also to benefit from the company’s outstanding performance. The Supervisory Board and Managing Board propose increasing the dividend from €4.25 in fiscal 2022 to €4.70 a share.

“Fiscal 2023 was a year of multiple records: In our Industrial Business, profit and profit margin reached their highest levels ever, and we nearly doubled our net income to a historic high. I would like to thank all our colleagues around the world for their tremendous contribution to these outstanding results. Our strategy is paying off, and we continue to accelerate the digital and sustainability transformations of our customers,” said Roland Busch, President and CEO of Siemens.

“In fiscal 2023, Siemens continued its path of value-creating growth and, for the first time, exceeded €10 billion in free cash flow,” said Ralf P. Thomas, CFO of Siemens. “Our shareholders will benefit from this success, with a proposed dividend increase to €4.70, a corresponding dividend yield of 3.5%, and our expanded share-buyback program.”

In fiscal 2023, Siemens increased revenue by 11% on a comparable basis to €77.8 billion. Orders grew 7% on a comparable basis to €92.3 billion. At 1.19, the book-to-bill ratio was at an excellent level. At €111 billion, the order backlog again set a new record with high quality. Digital business continued to grow rapidly and climbed around 12% to €7.3 billion.

Profit in Industrial Business rose 11% to €11.4 billion. The profit margin of the Industrial Business improved to 15.4%. Net income came in at €8.5 billion. All three of these results are record highs in the company’s history. Corresponding basic earnings per share before purchase price allocation accounting (EPS pre-PPA) were €10.77. Excluding the Siemens Energy Investment, which contributed €0.84 to EPS pre-PPA, EPS pre-PPA was €9.93 and exceeded the guidance (€9.60 to €9.90).

In the final quarter of the fiscal year, orders grew 6% on a comparable basis to €21.8 billion on higher volumes from large orders at Mobility combined with growth at Siemens Healthineers and Smart Infrastructure. Revenue was also up, increasing 10% on a comparable basis to €21.4 billion. Revenue was at a record level at all industrial businesses, with Smart Infrastructure making the largest contribution to growth.

Profit in Industrial Business grew 7% to €3.4 billion and achieved the highest quarterly level ever on significant increases in Digital Industries and Smart Infrastructure. The profit margin reached 16.5%. Net income totaled €1.9 billion compared to €2.9 billion in the prior-year quarter, which had benefited from a pre-tax gain of €1.1 billion from the sale of the mail and parcel-handling business.