Q3 2024 Siemens AG Earnings Call Transcript
Key Points
- Siemens AG (SIEGY) reported healthy growth and margin expansion in Q3 despite a muted macroeconomic environment.
- The company achieved a book-to-bill ratio of 1.05, driven by strong performance in Smart Infrastructure and Siemens Healthineers.
- Order backlog stands at a robust EUR113 billion, setting the company up for future profitable growth.
- Smart Infrastructure delivered an excellent quarter with EUR6 billion in orders, up double digits.
- Siemens AG (SIEGY) achieved consistent free cash flow performance of EUR2.5 billion in its Industrial Business.
- Orders in the automation businesses came in slightly lower compared to the prior year quarter.
- Economic activity was muted, particularly in China and Europe, leading to weak investments and demand in core markets such as machine building and automotive.
- The software business saw exceptional large license contract wins that are not expected to be repeatable to the same extent in the near term.
- The automation business saw a material decline in profitability due to reduced capacity utilization.
- The market environment remained challenging with subdued production output at many customer industries and soft investment sentiment in key regions such as Europe and China.
Good morning, ladies and gentlemen, and welcome to our Q3 analyst call. All Q3 documents were released this morning and can be found also on our IR website. I'm here today with our CEO, Roland Busch; and CFO, Ralf Thomas, who will review the Q3 results.
After the presentation, we will have ample time for Q&A. With that, over to you, Roland.
Yes. Thank you, Tobias, and good morning, everyone, and thank you for joining us. Before I discuss our financials, let me briefly touch upon yesterday's decisions of the Supervisory Board. The extension of Cedrik Neike's contract will allow us to build on our strength in the digital industry business, and it underscores the confidence of the Supervisory Board in Cedrik and the Siemens Managing Board. The appointments of Veronike Bienert and Peter Koerte to the Managing Board are an important step forward.
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