15 May 2025
If you are covering Siemens’ latest results, please see the following comment from Jarek Pominkiewicz, industrials analyst at Quilter Cheviot:
"Siemens has delivered a solid set of Q2 results that should reassure investors about its long-term positioning, even as pockets of weakness in Germany linger. Industrial orders came in 7% ahead of consensus, with notable strength from Mobility and Healthineers helping to offset continued softness in Digital Industries.
"While order intake in Digital Industries was flat, reflecting ongoing macro uncertainty and softness in German automation demand, the real story here lies in Siemens’ broader strategic footing.
"The group continues to benefit from some of the best structural positioning in the industrial automation space, particularly through its Digital Industries division, where there's increasing evidence that the recent destocking cycle in China is beginning to ease. This potential turning point could pave the way for a cyclical recovery in automation demand, just as Siemens is well placed to capitalise on longer-term secular growth trends in its smart infrastructure operations.
"Moreover, its ability to deliver margin expansion helped by operational leverage and ongoing productivity gains, alongside potential upside from its Healthineers business, offers further support to the investment case. Trading at a significant discount to peers despite this strategic strength, Siemens continues to look attractively valued.
"With a robust 16% profit increase year-on-year and guidance left unchanged for FY25, Siemens’ resilience and strategic clarity stand out amid a mixed macro environment."
