Siemens AG CDR

Record quarter & strong order momentum across the group (beat/strength) - Book-to-bill: 1.34 → order backlog reached a record EUR 132bn. - Group orders: EUR 27.9bn (+14% YoY), all-time high. - Smart Infrastructure (SI) crossed EUR 8bn order intake for the first time; SI data center vertical showed triple-digit YoY order growth (also exceeding Q2). - Digital Industries (DI) remained healthy: DI orders EUR 4.9bn (+9% YoY) with automation orders +11% (book-to-bill 1.01).

Growth delivered in revenues & profits (and why) - Broad-based revenue growth: +8% YoY, driven by DI and SI; all regions contributed. - Industrial Business profit: record EUR 3.5bn, margin 17.3% (supported by DI & SI operating trends and tariff-refund effects in the U.S.). - EPS pre-PPA: EUR 3.14, benefiting from margin expansion. - Free cash flow (FCF): EUR 4.1bn, up >40% YoY (notable cash generation theme).

Segment outlooks: confirm DI guidance; raise SI guidance (key forecasts) - DI (confirmed guidance, still “healthy”) - FY26: revenue growth 7%–10%; profit margin 17%–19%. - Q4 DI orders ~flat YoY (tough comps due to unusually high EDA bookings); automation orders up, software order volume below prior year, but software funnel remains promising. - SI (raised guidance due to strong visibility) - Q3: orders EUR 8bn (+42% YoY), book-to-bill 1.25, revenue +13% YoY, margin up to 20% (operationally netted tariff/refund and impairment effects). - FY26 raised to comparable revenue growth 10%–11% (up +150 bps at midpoint). - SI profit margin outlook lifted to 18.5%–19.5% (up +50 bps). - Q4 expectation: revenue growth toward lower end of full-year range; margins in line.