Earnings Release Q3 FY 2023: Serious ramp-up challenges in the wind business overshadow excellent performance in conventional energy business

Overall assumptions for the segments GS, GT, and TI for fiscal year 2023 remain unchanged as follows:

• GS plans to achieve a comparable revenue growth (excluding currency translation and portfolio effects) of 10% to 12% and a Profit margin before Special items between 9% and 11%.
• GT plans to achieve a comparable revenue growth of 12% to 14% and a Profit margin before Special items between 6% and 8%.
• TI plans to achieve a comparable revenue growth of 8% to 10% and a Profit margin before Special items between 3% and 5%.

Siemens Gamesa adjusts revenue and Profit assumptions for fiscal year 2023 and now assumes comparable revenue growth of negative 3% to 0% (previously positive 6% to positive 10%) and a negative Profit before Special items around €4.3bn. In addition to the aforementioned charges, the assumptions for Siemens Gamesa reflect lower profit contributions from the execution of its current order backlog mainly related to increased product costs and continued ramp-up challenges in the offshore activities.

Accordingly, the fiscal year 2023 outlook for Siemens Energy had to be adjusted. We now expect for Siemens Energy comparable revenue growth to be in a range of 9% to 11% (previously 10% to 12%) and a Profit margin before Special items between negative 10% and negative 8% (previously around the low end of the guidance range of positive 1% to positive 3%). Net loss of Siemens Energy Group now is expected to be around €4.5bn (previously expected to exceed prior fiscal year’s level of €712m by up to a low-triple-digit million € amount). We now expect a Free cash flow pre tax for fiscal year 2023 up to a negative low triple-digit million € amount (previously positive up to a low triple-digit million € amount).

The outlook for Siemens Energy assumes no major negative financial impacts from COVID-19 or other pandemic related events, no further deterioration in the supply chain and raw material cost environment, and excludes charges related to legal and regulatory matters.

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