Siemens recorded strong order growth in the third quarter of fiscal 2025. On a comparable basis, orders rose by 28% to €24.7 billion, while revenue increased by 5% to €19.4 billion. Industrial Business profit declined by 7% year-on-year to €2.8 billion, primarily due to a sharp drop in profitability within Digital Industries, leading to a decrease in the profit margin to 14.9%.
The software business within Digital Industries delivered a weaker performance compared to the same quarter last year, which had benefited from large licensing agreements that created a high baseline. All key performance indicators reflected this challenging year-over-year comparison. Nevertheless, free cash flow at the group level reached a very strong €2.9 billion. Net income increased by 5% to €2.2 billion.
Roland Busch, President and CEO of Siemens AG, commented on the third-quarter results: “Our third-quarter performance shows that Siemens continues to achieve stable and strong results despite volatility in global markets. We are maintaining sustainable growth momentum in orders, revenue, and net income. Digitalization and sustainability remain the main drivers of our growth. Furthermore, with the acquisition of Dotmatics, we are entering new markets in life sciences, creating significant synergies by integrating scientific intelligence with our industrial AI technologies.”
Ralf P. Thomas, Chief Financial Officer of Siemens AG, added: “In the third quarter, we delivered an impressive €2.9 billion in free cash flow. For the full fiscal year, we aim to achieve a double-digit free cash flow return. Looking ahead, we are confident that we will sustain our profitable growth, and therefore, we are maintaining our outlook for fiscal 2025.”
Strong Growth in Orders and Free Cash Flow
In the third quarter of fiscal 2025, Siemens increased its orders by 28% on a comparable basis to €24.7 billion. Total revenue rose by 5% on the same basis to €19.4 billion. The book-to-bill ratio came in at a strong 1.28, reflecting the company’s healthy growth momentum. In addition, the order backlog reached €117 billion at the end of the second quarter of 2025, maintaining its high-quality level.
Industrial Business profit declined by 7% to €2.8 billion in the third quarter, driven by a sharp drop in Digital Industries’ profitability. However, all other industrial businesses recorded both profit and margin growth. The Industrial Business profit margin was 14.9%.
Group net income rose by 5% to €2.2 billion. At the group level, free cash flow from continuing and discontinued operations reached an exceptional €2.9 billion. Free cash flow in the Industrial Businesses increased significantly from €2.5 billion to €3.0 billion, supported by improvements across all business units.
Profitable Growth in Smart Infrastructure and Mobility
Orders in Digital Industries fell moderately to €4.4 billion. However, orders in the automation business increased compared to the prior year’s low level, driven by strong demand in all three reporting regions, including significant growth in China and the U.S. Comparable revenue declined by 10% to €4.4 billion.
In Smart Infrastructure, comparable orders totalled €5.7 billion, close to the prior year’s strong level of €6.0 billion, which included a series of major contracts with data centre and energy customers. Revenue in all business units and all reporting regions increased by 9% on a comparable basis to €5.7 billion, led by the Electrification business, which executed a strong backlog of large orders from data centre and energy customers.
Smart Infrastructure once again increased both profit and profitability year-over-year, supported by higher revenue, improved capacity utilization, and ongoing efficiency gains. Profit rose by 16% to €1.1 billion, and the profit margin increased to 18.8%.
