Siemens has announced a significant increase in its fiscal 2024 dividend, fueled by exceptional demand for its electrification, transportation, and industrial software offerings, resulting in a remarkable net income of 9 billion euros, a historic high for the company. This impressive performance led to a 9% rise in shares during midmorning trading.
The technology giant declared a dividend of 5.20 euros per share for the fiscal year ending September 30, a rise from 4.70 euros per share the previous year. This distribution surpassed market expectations, which were set at 5 euros per share, and outstripped the forecast from RBC Capital Markets, which estimated 4.85 euros per share.
Net income attributable to shareholders reached 8.3 billion euros, up from 7.95 billion euros, supported by a revenue increase to 75.93 billion euros from 74.88 billion euros. However, revenue growth was somewhat tempered by a 6% decline in orders, which fell to 84.1 billion euros due to challenges within the automation sector.
In light of the current geopolitical uncertainties, trade conflicts, challenges in the manufacturing sector, and robust infrastructure markets, Siemens anticipates its fiscal 2025 comparable revenue growth to be in the range of 3% to 7%, a moderate forecast compared to the consensus estimate of 4.9%.
The expectation for basic earnings per share (EPS) from net income before purchase price allocation accounting, or EPS pre PPA, is projected between 10.4 euros and 11 euros, alongside RBC's estimates of 10.65 euros and 10.37 euros, respectively. The EPS pre PPA for fiscal 2024 was recorded at 10.54 euros.
RBC noted, "Mid-point of 2025 EPS outlook is marginally above consensus, with divisional guidance in the main framing existing consensus expectations as well." This reflects the overall solid set of results which, in light of broader macroeconomic uncertainties, are anticipated to be well received by the market.
President and CEO Roland Busch emphasized, "Starting in fiscal 2025, we will take Siemens to the next level of value creation. We will continue to invest in R&D and M&A to secure faster growth based on our technological strengths and ability to scale across industries.".