Siemens, the German industrial conglomerate, has reported a record annual profit and cash flow, driven by strong demand for its products and services across various sectors. The company’s net income rose to €4.6 billion ($5.2 billion) in the fiscal year ended September 30, up from €3.9 billion ($4.4 billion) in the previous year.
The company’s revenue increased by 10% to €62.3 billion ($70.6 billion), with growth seen in all its industrial businesses, including digital industries, smart infrastructure, and mobility. The strong performance was driven by demand for Siemens’ products and services in areas such as automation, digitalization, and electrification.
Siemens’ cash flow from operating activities also reached a record high of €8.4 billion ($9.5 billion), up from €6.5 billion ($7.4 billion) in the previous year. The company’s free cash flow, which excludes changes in working capital, rose to €6.4 billion ($7.3 billion) from €4.8 billion ($5.5 billion).
The company’s CEO, Roland Busch, attributed the strong performance to the company’s strategic focus on digitalization and sustainability. “Our strategy is paying off, and we’re seeing strong growth in our industrial businesses,” he said. “We’re well-positioned to benefit from the trends of digitalization, electrification, and sustainability, which are driving demand for our products and services.”
Siemens also reported a strong order intake, with a book-to-bill ratio of 1.14, indicating that the company received more orders than it fulfilled during the year. The company’s order backlog rose to €89 billion ($101 billion), providing a solid foundation for future growth.
The company’s performance was driven by strong growth in its digital industries business, which includes industrial automation and software. The segment’s revenue rose by 14% to €14.4 billion ($16.3 billion), with growth driven by demand for Siemens’ digital twin and industrial internet of things (IIoT) solutions.
Siemens’ mobility business also performed well, with revenue rising by 12% to €9.8 billion ($11.1 billion), driven by demand for the company’s rail and road transportation solutions. The company’s smart infrastructure business, which includes building technologies and energy management, saw revenue rise by 8% to €14.2 billion ($16.1 billion).
Overall, Siemens’ strong performance reflects the company’s successful transformation into a digital industrial company, with a focus on sustainability and electrification. The company’s record profit and cash flow provide a solid foundation for future growth, and its strong order backlog and book-to-bill ratio indicate a positive outlook for the future.