In this early report, the Siemens Group does not disclose the details of the various divisional results, but reports more overall and on general developments.
“In fiscal year 2024, Siemens increased revenue by 3 percent on a comparable basis to EUR 75.9 billion (fiscal year 2023: EUR 74.9 billion). Order intake decreased by 4 percent on a comparable basis to EUR 84.1 billion (fiscal year 2023: EUR 89.4 billion). At 1.11, the ratio between accounting and billing was at a strong level (fiscal year 2023: 1.19),” the company writes in the press material.
An acquisition that could make Siemens clear commercial PLM leader
The exact figures for the PLM parts will therefore not be possible to report now. However, the indications that have come so far during the year look good and strongly suggest that Siemens Digital Industries Software will be able to land somewhere in the range of €6.5-7.0 billion in revenue. Toughest competitor, Dassault Systeme’s latest full-year figure is the one for 2023 where the company landed at a total of close to €6 billion. For the full year 2024, it still remains to be seen where it all lands. In the DS report for Q3 2024, the growth outlook for the full year was lowered somewhat marginally, from plus 6-8 percent, to the new range of 5-7 percent, an indication of reaching €6.5 billion in full year revenue at best.
Here we can thus reach a situation where the competitive situation regarding the leadership position on the PLM side between Siemens DIS and Dassault Systemes is razor sharp.
As for 2025, however, the whole thing may change dramatically if Siemens, which is expected to get through the purchase of AI, HPC, and Simulation & Analysis company Altair. In 2023, the company had close to $613 million in total revenue, which consolidated within the framework of the Siemens PLM division would mean that, translated into euros, it reaches the roughly 7-billion-euro level and a clear commercial PLM leadership.
”ONE Tech Company” program to drive next level value creation
In regard of what is to come, Siemens writes in the press release: “Building on its strength as a leading technology company, Siemens has launched the ONE Tech Company program to achieve the next level of performance and value creation. The program aims to ensure that the company takes advantage of the opportunities that arise from the historical market changes that mark a turning point and from technological disruptions.”
The goal is to achieve stronger customer focus, faster innovation and higher profitable growth. Siemens will implement the ONE Tech Company program to accelerate the implementation of the existing strategy, which is summarized as ”combining the real and digital world.”
Parts of the program include the planned investment in Altair Engineering to strengthen Siemens’ leadership position in industrial software and the creation of Foundational Technologies as the entity to scale core business technologies across the company.
Outlook for FY2025, plus 3 to 7 percent is expected
Siemens AG’s outlook för 2025 is based on the assumption of moderate macroeconomic growth in this fiscal year, partly due to continued geopolitical uncertainty including trade conflicts, and also on ongoing challenges for the manufacturing sector due to overcapacity and weak consumer demand. At the same time, the infrastructure markets, especially in electrification and mobility, remain strong.
For the Siemens, comparable revenue growth is expected in the range of 3 percent to 7 percent.
Siemens Digital Industries expects for fiscal 2025 a change in comparable revenue, net of currency translation and portfolio effects, in a range of (6) percent to 1 percent and a profit margin of 15 percent to 19 percent.
