Understanding the Siemens Financial Report at a Glance

Siemens, through its “ONE Tech Company” plan,

enters its next growth phase.

• Siemens has raised its medium-term revenue growth target range to 6%-9%
• Basic earnings per share (on net income before purchase price allocation) is expected to achieve high single-digit growth
• The company reaffirms its progressive dividend policy
• Set a goal to double digital business revenue by 2030
• Over the next three years, the company will invest EUR 1 billion to scale up AI development
• Plans to increase the dividend per share to EUR 5.35 (fiscal 2024: EUR 5.20)
• Fiscal 2026 performance guidance: revenue is expected to grow on a comparable basis by 6%-8%; basic EPS on net income before purchase price allocation is expected to be in the EUR 10.40-11.00 range
• With the announced plan to divest Siemens Healthineers, Siemens will further focus on its highly synergistic business portfolio, laying the foundation for business growth

Siemens unveiled the strategy driving the company into its next growth phase at the “Siemens ONE Tech – Strategy & Results” event.

Roland Busch
Roland Busch
Chairman of the Managing Board of Siemens AG
President and Chief Executive Officer

Today's Siemens is stronger than ever, achieving historic results in fiscal 2025 that fully demonstrate the effectiveness of its strategy. We grow by deeply integrating the real and digital worlds. Under the “ ONE Tech Company ” plan, Siemens will enter its next growth phase and raise its medium-term revenue growth target to the 6% - 9% range. With a highly synergistic portfolio, we are committed to doubling digital business revenue and fully capturing opportunities in regional markets and vertical industries. At the same time, we will invest EUR 1 billion over the next three years to actively scale up our AI portfolio.

Siemens has raised its medium-term revenue growth target to the 6% - 9% range, excluding Siemens Healthineers. Thanks to improved profitability in industrial businesses in the coming years, the company expects basic EPS on net income before purchase price allocation to grow by a high single-digit percentage. The company will continue to maintain high standards across all other group targets. Siemens also reaffirmed its commitment to its progressive dividend policy, which will continue after the planned divestment of Siemens Healthineers. To sustain the dividend growth trajectory, the company will allow a higher payout ratio on a temporary basis where necessary. Share buybacks will remain an important part of shareholder returns.

With the announced plan to divest Siemens Healthineers, Siemens' operations will become simpler and its governance structure leaner, while the share of its rapidly growing digital business will increase further. The company will therefore focus on market areas highly aligned with long-term growth drivers, including automation, digitalization, electrification, sustainability, and artificial intelligence. With a highly synergistic portfolio spanning industry, infrastructure, and transportation, Siemens holds strategic advantages in software, hardware, and services, further enhancing its competitiveness with the support of AI.

Siemens Moves Toward Higher Profitable Growth

Currently, Siemens' strategically focused markets

annual growth rate of approximately 6%

The total addressable market is expected to

will increase to 6,500 hundred million euros

Siemens' accelerated growth is driven by four key levers: digital business, regional markets, vertical industries, and artificial intelligence.

Siemens is fully prepared to seize potential opportunities and further expand its strategically focused markets. Currently, its strategically focused markets are growing at about 6% a year, and the total addressable market is expected to reach EUR 650 billion within five years. The digital market will grow even faster, expanding 11% to EUR 75 billion by 2030. Siemens will also expand its total addressable market, planning average annual growth of 14% to 18% by 2030 from EUR 50 billion in fiscal 2025. The company is actively positioning itself in high-potential areas such as AI applications, AI factories, and life science software.

Digital business: increasing the share of digital business brings enormous growth potential. In 2021, Siemens set a target of 10% average annual growth for its digital business. Over the past five years, through various means including acquisitions, Siemens achieved 12% average annual growth in digital business, reaching EUR 9.4 billion and exceeding its target. Siemens now expects the digital business to grow at an average annual rate of 15% over the next five years, doubling its scale by 2030. The software business of Digital Industries grew 13% annually in recurring revenue, reaching EUR 5.3 billion. Siemens has won 24,000 SaaS customers, 70% of them new and nearly 90% small and medium-sized enterprises.

Regional markets: Siemens operates in nearly every market around the world; while operating globally, it also emphasizes localized development. The company strategically increases investment in promising markets to drive future growth, with the United States, China, and India as its key strategic markets. This broad geographic footprint strengthens Siemens' resilience against tariffs and trade restrictions and gives it a competitive advantage in achieving above-market growth. Over the next five years, the compound annual growth rate of the addressable market in these three regional markets is expected to be about 6% in the US, nearly 4% in China, and more than 7% in India (excluding Siemens Healthineers). In Europe, especially Germany, Siemens remains a major contributor to innovation and growth and will continue to invest.

Vertical industries: by integrating all of its businesses, Siemens will provide a complete digital thread covering the entire customer value chain for specific industries, achieving faster growth. Before work begins in the physical world, customers can digitally rehearse and optimize every step from product design to factory, building, train, signaling system, and grid operations. Key vertical markets include rail transportation (CAGR: 5%), aerospace (CAGR: 9%), life sciences (CAGR: 9%), semiconductors (CAGR: 10%), and data centers and AI factories (CAGR: 11%). Siemens is committed to consistently growing faster than the overall market.

Artificial intelligence: Siemens is continuously strengthening its pioneering position in industrial AI and further accelerating growth. The company unlocks the value of AI through three main paths: boosting innovation and productivity, expanding its AI-enabled portfolio, and creating brand-new AI solutions. Over the next three years, Siemens will invest more than EUR 1 billion to scale up its AI solutions. The company currently has 1,500 AI experts working across all areas.

2025 fiscal year results set new records

Fiscal 2025 was a milestone year for Siemens

Net income set an all-time record for the third consecutive year

New orders and revenue both achieved mid-single-digit growth

Ralf P.Thomas
Chief Financial Officer of Siemens AG

Cash flow is the core measure of performance. I am very pleased to see that Siemens' free cash flow hit an all-time high in both the fourth quarter and the full year of fiscal 2025. Profitable growth and disciplined portfolio management are the cornerstones of our success. Shareholders will benefit directly from the higher dividend proposal and the accelerated share buyback program. We will enter fiscal 2026 with greater strength and ambitious targets.

Fiscal 2025 was a milestone year for Siemens. Net income set an all-time record for the third consecutive year, reaching EUR 10.4 billion, with new orders and revenue both achieving mid-single-digit growth. Despite a challenging global environment, the company sustained profitable growth and met its full-year performance guidance. Shareholders will also benefit from these outstanding results: the Managing Board and the Supervisory Board propose raising the dividend per share from EUR 5.20 last year to EUR 5.35.

In fiscal 2025, excluding currency translation effects and portfolio impacts, Siemens' new orders grew 6% on a comparable basis to EUR 88.4 billion (fiscal 2024: EUR 84.1 billion). Revenue grew 5% on a comparable basis to EUR 78.9 billion (fiscal 2024: EUR 75.9 billion). The book-to-bill ratio remained strong at 1.12 (fiscal 2024: 1.11). Industrial business profit rose 3% to a record EUR 11.8 billion (fiscal 2024: EUR 11.4 billion), with an industrial business margin of 15.4%, close to the previous year's excellent level (fiscal 2024: 15.5%).

Net income grew 16% to EUR 10.4 billion, an all-time high for the third consecutive year (fiscal 2024: EUR 9.0 billion). Basic earnings per share on net income before purchase price allocation rose to EUR 12.95 (fiscal 2024: EUR 11.15). Excluding the gain from the divestment of Innomotics and the impacts related to the acquisitions of Altair and Dotmatics (EUR 2.23 in total), basic EPS on net income before purchase price allocation was EUR 10.71, in line with the company's performance guidance (EUR 10.40 to EUR 11.00).

In fiscal 2025, free cash flow at the Siemens Group level from both continuing and discontinued operations also hit a new all-time high, reaching EUR 10.8 billion (fiscal 2024: EUR 9.5 billion).

Fiscal 2026 performance guidance outlook is promising

Siemens Group expects revenue growth on a comparable basis of

6% to 8% | with a book-to-bill ratio above 1

(excluding currency and portfolio effects)

For fiscal 2026, Siemens expects the global economy to stabilize, with global GDP growth remaining broadly consistent with the previous fiscal year.

The company expects that unfavorable currency effects will put considerable pressure on the revenue growth, profit, and earnings per share (EPS) of its industrial businesses in fiscal 2026.

Digital Industries expects revenue to grow 5% to 10% on a comparable basis in fiscal 2026 (excluding currency and portfolio effects), with a margin of 15% to 19%. Smart Infrastructure expects revenue to grow 6% to 9% on a comparable basis in fiscal 2026, with a margin of 18% to 19%. Siemens Mobility expects revenue to grow 8% to 10% on a comparable basis in fiscal 2026, with a margin of 8% to 10%.

The Siemens Group expects revenue to grow 6% to 8% on a comparable basis in fiscal 2026, with a book-to-bill ratio above 1.

Based on the expected profitable growth of industrial businesses and the material impact of currency effects, Siemens expects basic EPS on net income before purchase price allocation in fiscal 2026 to be in the range of EUR 10.40 to EUR 11.00.

The related forecast figures exclude the potential impact of legal and regulatory measures.

Siemens is helping customers drive industrial transformation——building more flexible factories, smarter infrastructure, and more sustainable transportation networks, supporting economic pillars, and creating a better everyday life for billions of people through technology.