Siemens Energy raises free cash flow outlook after solid Q3

Published On : 08/07/2024

FRANKFURT (Reuters) -Siemens Energy on Wednesday raised its free cash flow outlook for the second time in three months, citing stronger demand for its power grid technology and gas turbines that helped it report higher-than-expected quarterly revenues.

The company, which provides equipment and services to the utility sector, is recovering from a crisis at its wind turbine division that caused it to seek help from the German government last year in the form of project guarantees.

“The rapidly growing electricity market requires a wide range of our products. Especially our grid and gas turbine businesses are benefiting from this momentum,” CEO Christian Bruch said in a statement.

The company said it now expects free cash flow before tax of 1.0 billion to 1.5 billion euros ($1.1-$1.6 billion) in 2024, having previously forecast up to 1.0 billion.

Third-quarter sales rose 18.5% to 8.8 billion euros, beating the 8.6 billion LSEG analyst consensus.

($1 = 0.9164 euros)

(Reporting by Christoph Steitz; Editing by Marguerita Choy and Ludwig Burger)

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