Siemens Posts Strong Performance in Third Quarter

Siemens recorded strong order growth in the third quarter of 2025. Orders reached EUR 24.7 billion on a comparable basis, up 28% (Q3 2024: EUR 19.8 billion), while revenues rose 5% to EUR 19.4 billion (Q3 2024: EUR 18.9 billion). Industrial Business profit declined 7% to EUR 2.8 billion (Q3 2024: EUR 3.0 billion), with profit margin falling to 14.9% (Q3 2024: 16.5%). 

Digital Industries' software business segment showed weaker performance in the period due to a high comparable base from significant license agreements achieved in the same quarter of the previous year. All key performance indicators reflected this challenging comparison. By contrast, group-level free cash flow reached an exceptionally strong EUR 2.9 billion (Q3 2024: EUR 2.1 billion). Net profit rose 5% to EUR 2.2 billion (Q3 2024: EUR 2.1 billion).

Siemens achieved strong results in the third quarter of 2025 ending 30 June 2025 and continued its successful growth trajectory by recording growth in nearly all key performance indicators. In line with this strong performance, the company confirmed its outlook for fiscal year 2025, excluding the effects of the early completion of the Altair and Dotmatics acquisitions and gains from the sale of Innomotics.

Roland Busch, President and Chief Executive Officer of Siemens AG, commented on the third quarter results as follows:
"Our third quarter performance demonstrates that Siemens is delivering stable and strong results despite volatility in global markets. We are recording sustainable growth momentum in orders, revenue and net profit. Digitalization and sustainability continue to be the core drivers of our growth. With the acquisition of Dotmatics, we are also opening up new markets in life sciences; we are creating significant synergy by integrating scientific intelligence with our industrial artificial intelligence technologies."

Ralf P. Thomas, Chief Financial Officer of Siemens AG, commented as follows:
"In the third quarter, we achieved impressive free cash flow of EUR 2.9 billion. For the full fiscal year, we are targeting double-digit free cash flow returns. Looking ahead, we have strong confidence that we will continue our sustainable and profitable growth. In line with this, we are maintaining our outlook for fiscal year 2025."

Strong growth in orders and free cash flow
Siemens increased orders on a comparable basis – adjusted for currency effects and portfolio impacts – by 28% to EUR 24.7 billion in the third quarter of 2025 (Q3 2024: EUR 19.8 billion). Total revenue rose 5% on the same basis to EUR 19.4 billion (Q3 2024: EUR 18.9 billion). The order-to-sales ratio reached a strong 1.28, reflecting the company's healthy growth momentum. Additionally, the accumulated order backlog at the end of the second quarter of 2025 reached EUR 117 billion, continuing to maintain high quality levels.

Industrial Business profit declined 7% to EUR 2.8 billion in the third quarter of 2025, following the exceptional strong performance in the software business segment in the same period of the previous year, as profit in Digital Industries fell sharply (Q3 2024: EUR 3.0 billion). By contrast, all other industrial business segments showed increases in both profit and profitability. The Industrial Business profit margin was 14.9% (Q3 2024: 16.5%).

Net profit rose 5% to EUR 2.2 billion (Q3 2024: EUR 2.1 billion). This increase was driven, among other factors, by gains of EUR 0.2 billion from the sale of a portion of the airport logistics business segment. Basic earnings per share before purchase price allocation accounting (EPS before PPA) rose 5% compared to the same period of the previous year to EUR 2.78 (Q3 2024: EUR 2.66).

At group level, free cash flow from continuing and discontinued operations reached EUR 2.9 billion, reaching an exceptional level (Q3 2024: EUR 2.1 billion). Free cash flow in the Industrial Business segments showed significant improvement, rising from EUR 2.5 billion to EUR 3.0 billion, driven by improvements recorded across all business segments.

Profitable growth in Smart Infrastructure and Mobility
Orders in Digital Industries declined moderately to EUR 4.4 billion (Q3 2024: EUR 4.5 billion). However, orders in the Automation business segment increased compared to the prior year, which was tracking low, driven by strong demand across all three reporting regions, including significant growth in China and the United States. This increase offset the decline in the Software business segment, which was impacted by the comparison to the exceptional strong Q3 2024, when a number of major license software contracts were signed. Comparable revenue declined 10% to EUR 4.4 billion (Q3 2024: EUR 4.9 billion). 

The significant revenue decline in the software business segment was largely driven by the high-value licensed software contracts from Q3 2024. By contrast, revenues in the Automation business segment increased year-over-year for the first time since Q4 2023, primarily driven by China. Profit (EUR 642 million) and profitability (14.5%) declined largely due to lower revenue in the software business and, primarily, high severance costs related to the automation business.

Comparable orders in the Smart Infrastructure business segment reached EUR 5.7 billion, approaching the strong level of the prior year (Q3 2024: EUR 6.0 billion), which included a number of major contracts signed with data center and energy customers. Revenue across all business segments and all reporting regions increased 9% on a comparable basis to EUR 5.7 billion (Q3 2024: EUR 5.4 billion), led by the Electrification business segment, which strongly executed a large order backlog from data center and energy customers.

The Smart Infrastructure business segment increased profit and profitability once again compared to the same period of the prior year, supported by higher revenue, increased capacity utilization and ongoing efficiency improvements. Profit rose 16% to EUR 1.1 billion (Q3 2024: EUR 923 million) and profit margin increased to 18.8% (Q3 2024: 17.0%). 

In the Mobility business segment, orders more than tripled to EUR 7.9 billion (Q3 2024: EUR 2.4 billion), driven by sharp increases from major orders, including an order valued at EUR 3.5 billion from an existing framework agreement for a turnkey rail system in Egypt and an order worth EUR 1.7 billion for high-speed trains and services in the United States.
 In the Mobility business segment, revenue increased 19% on a comparable basis to EUR 3.1 billion (Q3 2024: EUR 2.6 billion), driven by growth across all business segments, with the strongest contribution coming from the rolling stock and customer services business segments. Profit rose 26% to EUR 286 million (Q3 2024: EUR 227 million) due to higher revenue. The associated profit margin increased to 9.3% (Q3 2024: 8.7%).