Siemens Stock Gains On Strong Q4, Dividend Hike, Positive Outlook

(RTTNews) - Shares of Siemens AG were gaining around 3 percent in the German trading after the company reported Thursday higher profit, revenues and orders in its fourth quarter, supported mainly by high demand for electrification, digitalization and Industrial AI, which is expected to drive future growth.

Further, the German conglomerate raised dividend, issued positive outlook for fiscal 2027 and also raised medium- term targets, supported by strong long-term growth trends and the strength of its key markets.

Roland Busch, President and Chief Executive Officer of Siemens, said, "We delivered strong profitable growth in our core markets - driven by innovation, competitiveness and strong execution of our strategy. ... Industrial AI is an exceptional growth opportunity, and Siemens is built to win in this space. By consistently scaling Industrial AI, we are unlocking our next phase of profitable growth. Given our ambition to outperform our core markets, we are providing an ambitious outlook for fiscal 2027 and are raising our Group-level mid-term targets."

As announced earlier, the company plans to transfer 34.1 percent of its stake in Siemens Healthineers through a direct spin-off during fiscal 2027 and to deconsolidate Siemens Healthineers. Prior to the deal, Siemens Healthineers' results will be reported as discontinued operations on a comparable basis.

For fiscal 2027, the company projects earnings per share before purchase price allocation accounting, or pre PPA, in a range of €10.20 to €10.80, based on the expected profitable growth of its industrial businesses.

Further, the firm expects comparable revenue growth of between 9 percent and 11 percent for the new year.

In fiscal 2026, comparable earnings per share pre PPA, excluding Siemens Healthineers, was €9.27, with comparable revenue growth of 8 percent.

The expected comparable revenue growth for Digital Industries is 8 percent to 12 percent, Smart Infrastructure is 11 percent to 13 percent, and Mobility is 6 percent to 8 percent.

Further, for the mid-term, the company now projects growth in earnings per share pre PPA to be in the double-digit range, higher than previous view of high single-digit range.

Comparable revenue growth is now expected to be between 7 percent and 11 percent, compared to previous estimate of 6 percent and 9 percent.

In addition, the Boards will propose to the Annual Shareholders' Meeting an increase in the dividend to €5.50 per share from €5.35 a year ago.

In its fourth quarter, Siemens' net income climbed 32 percent to €2.161 billion from to €1.619 billion a year ago. Earnings per share were to €2.77, higher than to €2.05 last year.

Earnings per share pre PPA were €3.01 for the quarter.

The company's revenue for the period rose 10.5 percent to €23.683 billion from to €21.427 billion last year, supported by growth in all industrial businesses, with the largest contribution coming from Smart Infrastructure.

Fourth-quarter orders surged 58 percent to €34.8 billion, with growth in all industrial businesses led by particularly strong contributions from Mobility and Smart Infrastructure.

On a comparable basis, revenue increased 10 percent and orders rose 58 percent.

On XETRA in Germany, Siemens shares were trading at 286.15 euros, up 3.30 percent.

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