Siemens – Earnings Release Q2 FY 2023


Outstanding performance continues – Outlook raised again


“Siemens continues its outstanding performance, delivering several records, including impressive margin increases and all-time highs in profit for Digital Industries and Smart Infrastructure, as well as another record in order backlog,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “Our very strong results show that we have the right strategy, the right technology, and the right team to support our customers in becoming more competitive, resilient and sustainable.”

“We have delivered what we promised: We converted our fantastic revenue growth into high profit and ultimately into strong free cash flow. That is execution at its best, giving us the confidence to raise our guidance,” said Ralf P. Thomas, Chief Financial Officer of Siemens AG.


  • Revenue and orders for the second quarter each increased 15% on a comparable basis, excluding currency translation and portfolio effects
  • On a nominal basis, revenue climbed 14% year-over-year, to €19.4 billion; orders rose 13%, to €23.6 billion, driven by substantially higher volume from large orders in Mobility; the book-to-bill ratio was 1.22
  • Profit Industrial Business surged 47%, to €2.6 billion, with a profit margin of 14.2%; Digital Industries and Smart Infrastructure both delivered sharp increases and their highest-ever quarterly profit, while Mobility posted a profit compared to a loss in Q2 FY 2022 which included a €0.6 billion impact resulting from sanctions imposed on Russia
  • As a result net income rose to €3.6 billion, also benefiting from reversal of an impairment of Siemens’ stake in Siemens Energy AG resulting in a tax-free gain of €1.6 billion; corresponding basic earnings per share (EPS) were €4.39 and EPS before purchase price allocation accounting (EPS pre PPA) were €4.57, each including €2.01 per share related to the impairment reversal
  • Excellent Free cash flow from continuing and discontinued operations, reaching €2.3 billion for the quarter




  • Another quarter of very strong order intake, driven by the highestever quarterly order intake for Mobility which included a €2.9 billion order for locomotives and associated maintenance in India; clear growth in Smart Infrastructure while Digital Industries and Siemens Healthineers posted double-digit declines from high bases of comparison
  • Outstanding revenue growth on substantial increases at Digital Industries, Smart Infrastructure and Mobility
  • Currency translation effects took one percentage point from order growth and had only minimal impact on revenue growth; portfolio effects took one percentage point each from order and revenue growth
  • Higher profit Industrial Business included sharp increases at Smart Infrastructure and Digital Industries, which both achieved their highest-ever quarterly profit; profit at Mobility was substantially improved compared to a loss in Q2 FY 2022, which included a €0.6 billion impact resulting from sanctions imposed on Russia; Siemens Healthineers posted sharply lower profit due to lower earnings in the diagnostics business and burdens for refocusing activities in the advanced therapies business
  • Profit outside Industrial Business benefited from a €1.6 billion gain from partial reversal of an impairment of the stake in Siemens Energy AG
  • The change in Free cash flow was due mainly to Industrial Business, which generated strong Free cash flow of €2.7 billion compared to €1.9 billion in Q2 FY 2022; the sharp increase was driven by broadbased improvements led by Smart Infrastructure; the Cash conversion rate decreased mainly due to higher net income, which included the non-cash gain related to the stake in Siemens Energy AG as mentioned above
  • Provisions for pensions and similar obligations as of March 31, 2023 amounted to €1.8 billion, the same low level as on December 31, 2022
  • ROCE increased sharply driven primarily by higher net income


Digital Industries

  • Order intake in the automation businesses was strong, although below the high level in Q2 FY 2022; orders in the software business rose driven by several larger contract wins
  • Double-digit revenue growth in all businesses, with the strongest contributions coming from the automation businesses due to increased availability of components and accelerated conversion of the order backlog; on a geographic basis, revenue was also up by double digits in all regions, led by Europe, including Germany
  • Quarterly profit reached the highest level ever; profit and profitability rose in all automation businesses supported by higher revenue and a more favorable product mix with improved availability of components for high-margin products; the software business increased expenses related to cloud-based activities and made continuing progress in the transition to software as a service (SaaS)


Smart Infrastructure

  • Higher order intake was mainly driven by substantial growth in the electrification business, which won a number of larger contracts from data center, semiconductor and power distribution customers
  • Double-digit revenue growth in all businesses, led by the electrical products and the electrification businesses
  • On a geographic basis, volume rose in all reporting regions; following strong order intake in prior quarters, the largest growth contribution to revenue came from the U.S.
  • Quarterly profit and profit margin reached their highest levels ever; improvements in all businesses due to higher revenue, increased capacity utilization, a more favorable revenue mix and cost reductions achieved through the ongoing competitiveness program



  • Highest-ever quarterly order intake for Mobility driven by a number of large contract wins, among them a €2.9 billion order for locomotives and associated maintenance in India and a €0.3 billion order for a signaling system and station infrastructure in Singapore
  • Substantial increase in revenue on growth contributions from all businesses, led by sharply higher revenue in the rolling stock business; Q2 FY 2022 was impacted by a €0.2 billion revenue reduction resulting from sanctions imposed on Russia
  • Profit and profitability turned positive compared to Q2 FY 2022, which included a €0.6 billion impact resulting from sanctions imposed on Russia; the current period benefited from €78 million in trailing effects related to Russia, which were largely offset by incentive accruals and by a less favorable business mix


Siemens Healthineers

  • Order intake down compared to the high level in Q2 FY 2022 due primarily to sharply lower demand for rapid coronavirus antigen tests in the diagnostics business, also leading to a revenue decline in that business; in contrast, revenue growth in the Varian, imaging and advanced therapies businesses
  • While the imaging and Varian businesses increased earnings, overall profit came in sharply lower due in part to the revenue decline in the diagnostics business which also recorded charges of €77 million (excluding severance) related to its transformation program; in addition, profitability was burdened by impairments and other charges totaling €329 million due to a management decision to refocus certain activities in the advanced therapies business, as well as by cost increases particularly for procurement and logistics


Siemens Financial Services

  • Siemens Financial Services recorded higher results in a volatile credit environment; Q2 FY 2022 was strongly influenced by charges of €57 million related to sanctions imposed on Russia
  • Results for the equity business on the strong prior-year level
  • Decrease in total assets driven primarily by negative currency translation effects


Portfolio Companies

  • Order growth driven by the Airport Logistics business of Siemens Logistics, which recorded a higher volume from larger orders compared to Q2 FY 2022; revenue up mainly due to strong conversion of the order backlog at Large Drives Applications
  • Primarily due to the sale of the mail and parcel-handling business of Siemens Logistics in Q4 FY 2022, portfolio effects took 15 and 13 percentage points from orders and revenue, respectively
  • Whereas Q2 FY 2022 benefited from a €292 million revaluation gain in connection with the sale of Siemens’ share in Valeo Siemens eAutomotive GmbH, profit in the current quarter included strong improvements led by Large Drives Applications


Reconciliation to Consolidated Financial Statements

  • Siemens Energy Investment result included a non-cash gain of €1.6 billion from a partial reversal of a previous impairment on Siemens’ stake in Siemens Energy AG, resulting from a significantly higher share price compared to Q3 FY 2022, when the impairment was recorded; in addition a non-cash gain of €0.2 billion was recorded in connection with a capital increase by Siemens Energy AG, in which Siemens did not participate; Siemens’ stake in Siemens Energy AG was thereby reduced from 35.1% to 31.9%
  • Financing, eliminations and other items included a revaluation loss of €67 million on the stake in Thoughtworks Holding, Inc.




Following the strong first half of fiscal 2023, we again raise our outlook for the fiscal year.

For the Siemens Group we now expect comparable revenue growth, net of currency translation and portfolio effects, in the range of 9% to 11% (previously expected at 7% to 10%) and continue to expect a book-to-bill ratio above 1.

Digital Industries now expects for fiscal 2023 to achieve comparable revenue growth of 17% to 20% (previously expected at 12% to 15%). The profit margin is now expected to be 22.5% to 23.5% (previously expected at 20% to 22%).

Smart Infrastructure now expects for fiscal 2023 comparable revenue growth of 14% to 16% (previously expected at 9% to 12%). The profit margin is now expected to be 14.5% to 15.5% (previously expected at 13.5% to 14.5%).

Mobility now expects for fiscal 2023 comparable revenue growth of 10% to 12% (previously expected at 6% to 9%). The profit margin is continued to be expected in the range of 8% to 10%.

We now expect this profitable growth of our industrial businesses to drive an increase in EPS pre PPA to a range of €9.60 to €9.90 (previously expected at €8.90 to €9.40) in fiscal 2023. Including €2.01 per share in the second quarter of fiscal 2023 resulting from partial reversal of the previous impairment on Siemens’ stake in Siemens Energy AG, EPS pre PPA is expected in a range of €11.61 to €11.91.

This outlook excludes burdens from legal and regulatory matters and material impairments as well as reversals of material impairments.



Starting today at 08:00 a.m. CEST, the press conference call on Siemens’ second-quarter results for fiscal 2023 will be broadcast live at

Starting today at 09:30 a.m. CEST, you can also follow the conference call for analysts live in English at

Recordings of both conference calls will be made available afterwards.

The financial publications can be downloaded at:



Financial Results .

Second Quarter and First Half of Fiscal 2023

Key figures (in millions of €, except where otherwise stated)


Consolidated Statements of Income


Consolidated Statements of Comprehensive Income


Consolidated Statements of Financial Position


Consolidated Statements of Cash Flows


Overview of Segment figures


EBITDA Reconciliation


Orders & Revenue by region


EMR Analysis


More information on Siemens: See full profile on EMR Executive Services

More information on Dr. Roland Busch (President and CEO, Siemens AG): See full profile on EMR Executive Services

More information on Ralf P. Thomas (CFO, Siemens AG): See full profile on EMR Executive Services



EMR Additional Notes: