Siemens reported first fiscal quarter 2023 (ending December 31, 2022) with a strong performance and growth momentum based on good financial results.

Following the strong start in fiscal 2023, Siemens raises its outlook for fiscal 2023 and expects revenue growth in the range of 7% to 10 % (previously expected at 6% to 9%) and a book-to-bill ratio above 1.

Furthermore, Siemens now expects this profitable growth of its industrial businesses to drive an increase in basic EPS from net income to a range of €8.90 to €9.40 (previously expected at €8.70 to €9.20) in fiscal 2023.

Shares surged more than 7% after the company lifted its full year sales and profit guidance.

Profit Industrial Business sets new first-quarter record
In Q1 2023, Siemens increased revenue on a comparable basis 8% to €18.1 billion (Q1 2022: €16.5 billion). At €22.6 billion, orders were at a very high level (Q1 2022: €24.2 billion but the prior-year figure included an extraordinarily high order volume at Digital Industries and Mobility).

At €102 billion, the order backlog was at an excellent level and of high quality despite negative currency translation effects of €4 billion.

Profit Industrial Business totaled €2.7 billion, an increase of 9% and a new record for the first quarter of a fiscal year (Q1 2022: €2.5 billion).

At 15.6%, the profit margin of the Industrial Business was at about the same high level as in the prior-year quarter (Q1 2022: 15.7 percent).

Net income reached €1.6 billion (Q1 2022: €1.8 billion). Net income in Q1 2022 had included a positive effect of €0.3 billion (pretax) related to the investment in Fluence Energy following its initial public offering. Basic earnings per share were €2.08 (Q1 2022: €2.24).

Free cash flow all-in at Group level from continuing and discontinued operations reached €86 million (Q1 2022: €1.1 billion). The Industrial Business generated free cash flow of €0.4 billion (Q1 2022: €1.4 billion). The decline in both figures was driven primarily by higher trade receivables and temporarily increased inventories.

Revenue at Digital Industries increased by a total of 15% to €5.1 billion, with the strongest contribution coming from the automation businesses.

At Smart Infrastructure, orders rose 16% to €6.0 billion. All business areas contributed to this growth, in particular, the electrification business due to a number of larger contract wins from the semiconductor industry, among others.

Revenue grew 15% to €4.6 billion. Profit climbed 47% to €704 million. The profit margin reached 15.3% (Q1 2022: 12.6 percent), Smart Infrastructure’s best quarterly profit margin to date.