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CAPITAL GOODS: Siemens Energy (SIENFI NR/BBB-[N]/NR): 3Q24 Results

CAPITAL GOODS

Positive for spreads. Gamesa stabilisation on track and another FCF upgrade. As it stands we expect S&P to stabilise the rating outlook at some point.

  • Siemens Energy revenue came in 2% ahead of expectations driven by gas services and transformation, with grid tech lagging slightly. Orders are healthy at 1.2x book to bill but a little lower than expected. 
  • Adj. EBITDA beat by 235% (€414mn vs 123mn consensus), at 4.7% margin vs 1.4% expected (4 estimates) with better margins feeding through from the order backlog.
  • FCF improved from -€55mn to €623mn YoY mainly thanks to stronger EBITDA. Net cash up to €1.7bn from €0.9bn YoY.
  • Making progress on recovery in turbines with 4.X reintroduction on track.
  • Pre-tax FCF guidance raised from €1bn to €1-1.5bn, following bigger upgrades at 2Q.
  • Webcast replay https://event.choruscall.com/mediaframe/webcast.html?webcastid=IzUxHwNi.

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