Grid and gas demand help Siemens Energy get back on track

Siemens Energy has announced record-level order backlog and improved margin quality, nine months after needing a safety net from Germany’s Federal government.

In their Q3 2024 results, the company announced an improved cash outlook, citing increasing demand for their grid and gas turbine businesses. Gas Services’ orders more than doubled year-over-year.

Specifically, Siemens Energy reports a new record for their order backlog at €120 billion ($131 billion) and revenue growth of 18.5%, with substantial growth in Grid Technologies, Transformation of Industry and Siemens Gamesa.

Commenting in a release, Siemens Energy’s president and CEO Christian Bruch attributed the positive backlog to increases in global energy consumption, which has resulted in demand and growth for their businesses.

Last year, the German government assisted with a counter-guarantee to support the company after their net loss of €4.5 billion ($5 billion) for the 2023 fiscal year, primarily due to the company’s ailing wind division, Siemens Gamesa.

For Q3 this year, the company reported a net loss of €102 million ($111.3 million).

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Said Bruch: “The rapidly growing electricity market requires a wide range of our products. Especially our grid and gas turbine businesses are benefiting from this momentum.

“Importantly, with growing our order backlog, we have been able to improve its margin quality as well. Despite all the challenges, we are optimistic about the future and after the first nine months, we are well on track to meet our full-year guidance.”

Looking ahead, the company expects to achieve comparable revenue growth of 10 to 12% and free cash flow pre tax in a range of €1 billion ($1.1 billion) to €1.5 billion ($1.6 billion) for the fiscal year.

Said Bruch during a press conference call: “…quarter by quarter, we’re making headway. It’s not exciting, but it’s what we want to achieve.

“We expect that the global demand for power will continue to grow in addition to population growth and more electrification.”

Additionally, stated Bruch, new markets are opening up with the potential for growth: “New additional markets contribute to this. One topic, which is currently discussed everywhere is the power need for data centres – they make up a considerable part of our inquiries.

“And for the future, this means potential growth.”

Originally published on Power Engineering International.