Siemens raises annual guidance after profit jump and clears path for Healthineers spin-off

The planned spin-off of Siemens Healthineers took center stage at the presentation. The new CFO Veronika Bienert, who recently took over the role, said that the relevant tax matters with the financial authorities had now been conclusively resolved. She stated verbatim: "Wie erwartet konnten wir zwischenzeitlich die relevanten steuerlichen Themen mit den Finanzbehörden verbindlich klären, um mit der Abspaltung von Siemens Healthineers planmäßig fortzufahren." The company had announced the separation of the medical technology division some time ago.

Background on the Healthineers Spin-off

The move is intended to simplify Siemens' structure and enable an independent stock market listing of Siemens Healthineers. The medical technology subsidiary, which includes imaging and laboratory diagnostics equipment, is to operate as an independent company in the capital market going forward. Industry observers see this as an attempt to make the valuation of the two business areas more visible.

Smart Infrastructure — solutions for building and energy infrastructure — remains an important pillar. Siemens continues to see growth opportunities here, as cities and industrial companies want to digitally network their facilities and operate them more energy-efficiently. The rising demand for data center infrastructure for AI applications also benefits the group, which supplies the relevant switchgear and components.

Smart Infrastructure and the AI Boom

Bienert reaffirmed that Siemens can still achieve its medium-term targets — annual revenue growth of five to seven percent and an adjusted EBITA margin of 18 to 21 percent. To this end, the group is also relying on smaller acquisitions in the software and industrial artificial intelligence space, without significantly expanding its investment volume.

For employees in Germany, the guidance raise initially changes little. The workforce at the main Munich site and at the other locations in the country benefits indirectly through higher profit-sharing, the company said. Employee representatives had previously demanded, however, that any potential stock market listing of Healthineers be linked to clear site commitments.

Outlook for the Fiscal Year

Analysts assessed the management's appearance as a unified presentation. The combination of higher guidance, confirmation of the strategic line, and clarification on the Healthineers spin-off met expectations. Some observers also pointed out that the success of the spin-off will depend substantially on how the regulatory environment in the USA and Europe develops further.

Overall, Siemens sees itself in a stable position: the company benefits from long-term trends such as electrification, digitalization, and automation, and can serve these across multiple business fields simultaneously. Order books are well filled, it was added. With the prospect of the Healthineers spin-off being completed soon, the coming months are likely to be structurally decisive for the group.

For the coming quarters, the company announced that it will continue to review its capital allocation. Proceeds from the spin-off could be used, among other things, for share buybacks, further acquisitions, or debt reduction. A concrete decision on this will only be made after the transaction has been completed, Bienert stressed.