Siemens posts record profits but warns on trade tensions

German industrial giant Siemens on Thursday posted a record net profit in the last fiscal year, but warned that global tariff conflicts could weigh on business in the coming 12 months.

Siemens netted nine billion euros ($9.5 billion) in cash between October 2023 and September 2024, a five percent increase on the previous year, the group said in a statement.

Across the board, revenues grew moderately to 75.9 billion euros from 74.9 billion euros in the previous year, when adjusted for changes in the group's activities.

Orders, meanwhile, declined to 84.1 billion euros from 89.4 billion euros the previous year, Siemens said. The sprawling conglomerate had seen "strong demand" in its electrification, transportation and industrial software divisions, Siemens CEO Roland Busch said.

Conditions in its automation business, however, remained "challenging", Busch said.

Revenues in the area were "substantially lower" than in the previous year, with companies "still reducing elevated stock levels due to weak global demand for manufactured goods", Siemens said.

The weakness saw revenues in Siemens's digital industries division decline by eight percent in a year to 18.5 billion euros.

And looking ahead, the group anticipated this core business segment to struggle, saying revenues could decline by up to six percent in the coming year. Overall, Siemens said it expected revenue growth in the coming year of between three and seven percent.

The group based its forecast for the coming year on the assumption of "moderate macroeconomic growth" over the coming twelve months. The tempered optimism was down to "ongoing challenges for the manufacturing sector due to overcapacity and weak consumer demand", Siemens said.

It was also "due in part to continuing geopolitical uncertainty including trade conflicts", the group said. The results came shortly after the reelection to the White House of Donald Trump, who promised during his campaign to significantly raise tariffs.

Siemens Energy, which was spun off from the larger group in 2020 and in which Siemens retains an interest, on Wednesday said that its long-term plans could be "influenced" by the transition of power in the United States.