Siemens Smart Infrastructure (SI) recently held its Capital Market Event showcasing outstanding financial performance and value creation.
SI announced upgraded mid-term targets to achieve 6-9 percent comparable revenue growth and a target profit margin range of 16-20 percent over a 3-5-year cycle.
It will continue to focus on delivering strong profitable growth, margin expansion and cash generation, with emphasis on value creation in key geographies and innovation across its portfolio and end markets.
The business, which combines the real and the digital worlds for sustainable infrastructure, announced it had outperformed the market, including outgrowing its direct competitors, and exceeded the commitments made during Siemens Capital Market Day in June 2021.
SI exceeded its previous mid-term targets, achieving 11 percent CAGR for revenue growth in the period fiscal 2020-2024. Its record 17.3 percent profit margin in fiscal 2024 was well above the targeted 11-16 percent profit margin over the cycle.
During the past four years, SI has more than doubled its digital business revenue to €1.7 billion, exceeding the €1.5 billion target it had announced back in 2021, one year ahead of time. The business has also been a strong contributor to support Siemens meet and exceed ambitious sustainability targets.
For fiscal 2025, SI is targeting a major advance towards its upgraded commitments, aiming for revenue growth of 6-9 percent and a profit margin range of 17-18 percent.
The strong position it holds today will enable the business to continue capitalising on growth drivers resulting from global megatrends, including electrification, decarbonisation, resource efficiency, data and AI, resilience and people centricity – all recognised as drivers of the digital and sustainability transitions.
With a clear commitment to supporting customers’ decarbonisation goals, SI helped them avoid 44 million tons of CO2 emissions in fiscal 2024 alone.
“We set ambitious commitments and we delivered. Now, we’re raising the bar again with new targets to unlock the next level of value creation,” said Matthias Rebellius, member of the Managing Board of Siemens AG and CEO of Smart Infrastructure. “As a global technology leader in this rapidly evolving market, our Smart Infrastructure business is in a sweet spot, strategically positioned to capitalise on growth drivers.
“We help customers across a broad range of industries and geographies to increase their efficiency so they can operate both profitably and sustainably and reach their own financial targets in a competitive environment.”
Commenting on SI’s achievements, Siemens AG’s Chief Financial Officer Ralf P. Thomas said: “Over the past years, Smart Infrastructure impressively demonstrated how successful a well-prepared and consistently executed transformation can be.
“The business operated exceptionally well across all metrics in a dynamically growing market. SI has been and will continue to be a key pillar of Siemens’ overall success.
“With the medium-term targets announced today, we are confident that SI will continue to drive strong revenue growth, margin expansion and cash generation – not only for SI, but also for Siemens as a whole.”
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