Siemens Energy posts Q3 profit, hikes FY free cash flow guidance

7th Aug 2024 07:16

(Sharecast News) - German gas and power business Siemens Energy upped its free cash flow guidance for the second time in three months on Wednesday amid stronger demand for its power grid technology and gas turbines.

Siemens now expects full-year pre-tax free cash flow to be between €1.0bn-1.5bn. It also slightly narrowed guidance for its embattled wind division, Siemens Gamesa, pointing to a loss before special items of as much as €2.0bn.

Q3 sales rose 18.5% to €8.8bn, beating expectations for a print of €8.6bn, while profit before special items came to €69.0m in the three months ended 30 June, up from a loss of €41.0m a year earlier.

Chief executive Christian Bruch said: "The rapidly growing electricity market requires a wide range of our products. Especially our grid and gas turbine businesses are benefiting from this momentum. Importantly, with growing our order backlog, we have been able to improve its margin quality as well.

"Despite all the challenges, we are optimistic about the future and after the first nine months, we are well on track to meet our full-year guidance."

As of 1030 BST, Siemens shares were up 0.53% at €24.59 each.

Reporting by Iain Gilbert at Sharecast.com