German industrial group Siemens has raised its medium-term growth outlook after reporting record orders and stronger-than-expected quarterly results. The company said demand for railway equipment and technology used in artificial intelligence data centres helped drive its performance. Its industrial profit increased by 22 percent to €3.89 billion during the three months ending September 30. The figure was higher than analysts had expected and marked the strongest industrial profit Siemens has reported. Revenue also increased, while new orders reached a record level.
The company reported revenue of €23.68 billion, an 11 percent increase from the same period a year earlier. Orders climbed 58 percent to €34.77 billion, supported by major contracts in its Mobility and Smart Infrastructure divisions. Siemens supplies railway systems as well as electrical equipment, cooling systems and digital tools used in large data centres. Demand from customers in the United States and Europe has been particularly strong. The expansion of artificial intelligence services is creating a need for more computing facilities, and those facilities require reliable power distribution, cooling and building infrastructure.
Following the results, Siemens increased its medium-term annual comparable revenue growth forecast to between 7 and 11 percent, compared with its previous range of 6 to 9 percent. It also expects revenue growth of 9 to 11 percent in 2027. Investors responded positively, with the company’s shares rising in early Frankfurt trading. Siemens also confirmed plans to reduce its ownership of Siemens Healthineers by distributing shares to existing shareholders. The latest results show how demand from digital infrastructure and transport projects is supporting traditional industrial companies. Siemens will now need to maintain its order growth and deliver major projects on time to meet its higher targets.
