German industrial conglomerate Siemens disclosed an unforeseen surge in quarterly earnings on Thursday, reaffirming its annual projections while cautioning against “heightened uncertainty” within the global economic landscape.
The company’s net income reached €2.4 billion ($2.7 billion) between January and March, marking an 11 percent increase year-over-year, surpassing analysts’ anticipations of a marginal contraction.
This unexpectedly robust performance was primarily fueled by the strong momentum within its mobility division, specializing in products such as trains, and its infrastructure unit, propelled by substantial demand for data center solutions.
Group revenue experienced a six percent expansion, reaching €19.8 billion.
Conversely, the digital industries division, focused on software and factory automation systems, encountered a five percent decrease in sales.
This division is slated to absorb the majority of the approximately 6,000 job reductions, representing around two percent of Siemens’ global workforce, which were announced in March.
During the second quarter, Siemens finalized its acquisition of Altair, a U.S.-based software company leveraging artificial intelligence. The company is also in the process of acquiring Dotmatics, an American manufacturer of scientific software.
Siemens CEO Roland Busch commented that both acquisitions “will introduce novel AI capabilities to our clientele and unlock new avenues in burgeoning markets such as life sciences.”
The conglomerate reiterated its outlook for fiscal year 2025, projecting sales growth between three and seven percent, primarily driven by its infrastructure and mobility divisions.
However, the company also signaled “increased uncertainty in the economic environment.”
U.S. President Donald Trump’s assertive trade policies have disrupted the established framework of international commerce, triggering market volatility and concerns regarding a global economic slowdown.
