The Munich-based company, renowned for its diverse portfolio encompassing factory automation software, industrial controllers, and railway technology, reported a robust 29% rise in industrial profit to 3.24 billion euros ($3.63 billion) for the three-month period ending in March. This impressive figure notably surpassed the analysts' consensus forecast of 2.75 billion euros, bolstered by a 315-million-euro gain from the divestiture of its wiring business to ABB.
Siemens also reported a 7% increase in sales, reaching 19.76 billion euros, exceeding market expectations of 19.22 billion euros. Furthermore, the company witnessed a healthy 10% growth in orders received during the quarter.
These positive results have reinforced Siemens' confidence in its full-year guidance, with the company confirming its outlook for a 3-7% sales increase. This projection stands despite the company acknowledging "increased uncertainty in the economic environment," a sentiment echoed by Chief Financial Officer Ralf Thomas in March, who noted customer hesitancy and investment delays due to tariff concerns.
Chief Executive Roland Busch conveyed a sense of stability and strength, stating, "Our customers continue to rely on our technology, and our global footprint demonstrates our resilience." This statement underscores the fundamental demand for Siemens' products and services across various industries and geographies.
While Siemens presented an overall positive picture, its flagship Digital Industries automation unit experienced a 5% decline in revenue. However, the company indicated that it is observing signs of destocking by customers nearing its conclusion, suggesting a potential rebound in future performance.
This weakness in Digital Industries was effectively offset by the strong performance of Siemens' Smart Infrastructure division. This segment, which integrates hardware and software solutions for managing energy, climate control, and data within buildings, saw a significant 12% increase in sales and a remarkable 61% jump in profit.
The division's success is being driven by sustained demand for electrification, power distribution solutions, and the development of data centers crucial for artificial intelligence applications. The aforementioned sale of its wire accessories business also contributed positively to the Smart Infrastructure division's profitability.
The Mobility division also contributed to Siemens' positive results, experiencing growth in both revenue and profit. This growth is attributed to ongoing global investments in rail and transport infrastructure, including projects such as the development of electric trains in the United States.
Overall, Siemens' second-quarter performance and reaffirmed full-year outlook suggest a company navigating a complex economic landscape with resilience and capitalizing on key growth areas such as smart infrastructure and mobility, even as its core automation business faces temporary headwinds.