Siemens' quarterly industrial business profit rose 29% year-on-year, exceeding expectations, driven by demand for AI-related power equipment

German industrial giant Siemens announced its second-quarter results for the period ending March. Quarterly industrial business profit rose 29% year-on-year to €3.239 billion, exceeding market expectations of €2.75 billion. The company recorded a profit of €315 million from the sale of its wiring business to ABB during the period. Quarterly revenue increased 7% year-on-year to €19.757 billion, surpassing market expectations of €19.22 billion. Quarterly orders amounted to €21.643 billion, up 10% year-on-year.

The company's flagship automation division, the Digital Industries segment, saw a 5% year-on-year decline in quarterly revenue. The company stated that customer destocking is nearing its end. Smart infrastructure sales rose 12% year-on-year, with profits in this segment increasing 61%, influenced by the sale of its wiring accessories business. This segment also benefited from the power and related management demands brought about by artificial intelligence data centers.

The company confirmed its outlook for annual sales growth of 3% to 7%, despite noting increased uncertainty in the economic environment