Siemens Q2 growth driven by infrastructure needs, cautious on tariffs

MUNICH, Germany — Siemens growth in the quarter shows resiliency against tariffs and other challenges according to President and CEO Christian Bruch during the company’s Q2 2025 earnings call.

“In our last quarterly call, I explained the resilient nature of our business model, and this provides us with confidence that we are well equipped to deal with tariffs as they arise and continue to focus on profitable growth,” Bruch told investors.

The CEO also noted that the company is closely monitoring the developments with tariffs and continues to analyze their potential impact while taking proactive steps to mitigate them.

“We are, as Siemens Energy, not immune to tariffs as we have a global supply chain and trade flows into the United States from the rest of the world,” he said. “It is also important to get a better understanding of the secondary trade policy effects on GDP and energy demand and tertiary effects such as potential changes in customer behaviors.”

The company clocked a strong performance of 10% YoY, resulting in Siemens raising its guidance. Much of the success of the company in the quarter stemming from smart infrastructure like gas services, and especially electrification which reflects a strong growth in power consumption.

“Electricity consumption continues to grow and aging infrastructure needs to be replaced,” said Bruch. “Growth in electricity consumption has been particularly strong in the United States, where we also see a big need to replace aging infrastructure.”

Other large demand for infrastructure development came from the Middle East from countries rebuilding and investing in sustainable and affordable electricity and energy generation capacity. The company attributed the rising demand for energy to data centers around the globe.

Financials at a Glance

• Second-quarter orders rose 10% year-over-year to €21.6 billion, and revenue grew 7% to €19.8 billion for a book-to-bill ratio of 1.10
• On a comparable basis, excluding currency translation and portfolio effects, orders were up 9%, and revenue rose 6%
• Profit Industrial Business surged 29% to €3.2 billion on strong operational execution and benefited from a €0.3 billion gain related to exiting a business at Smart Infrastructure; profit margin Industrial Business was 16.9%
• Net income increased 11% to €2.4 billion; corresponding basic earnings per share (EPS) were €2.86, and EPS before purchase price allocation accounting (EPS pre PPA) were €3.00
• Free cash flow from continuing and discontinued operations was €1.0 billion