Teka77/iStock Editorial via Getty Images
Siemens Energy (OTCPK:SMEGF) said Wednesday it swung to a net profit in its FQ1, as orders jumped in an environment of favorable energy market trends.
Q1 net income was €1.55B ($1.67B), compared with a €473M loss in the year-earlier quarter, revenues rose 13% Y/Y to €7.65B, and orders climbed 24% to €15.38B; its order backlog totals €118B.
Siemens Energy (OTCPK:SMEGF) reiterated its outlook for the rest of FY 2024 to September 30 of comparable revenue growth of 3%-7% and pre-special-item profit margin between negative 2% and positive 1%.
In an interview with Bloomberg, CEO Christian Bruch stuck to a prediction that the Gamesa unit will break even in 2026, but fixing faulty wind turbines will take years with the biggest cash outflow expected in 2025.
"We had a solid start into the year with momentum in all the businesses," Bruch said. "We have to continue to drive the energy business outside wind and fix the quality issues particularly in wind step by step."
The CEO said the company is in talks with customers about plans to repair flawed turbines; revelations last year about the severity of the problems culminated in a €15B deal with the German government, a group of banks and top shareholder Siemens (OTCPK:SIEGY) to shore up its finances.
Bruch said orders for offshore turbines currently are lower than originally anticipated, but he believes "momentum in Europe will come back next year," while the U.S. is "definitely delayed."