By Christoph Steitz
FRANKFURT (Reuters) -Siemens Energy expects to hit the upper end of its 2025 growth outlook range, it said on Wednesday, driven by its wind turbine division and strong power equipment demand in the U.S., which helped offset the impact of import tariffs.
The company, which makes around a fifth of its sales in the United States, has been fairly insulated from the impact of President Donald Trump’s import duties, mainly due to its strong U.S. presence and contracts that allow costs to be passed on.
Siemens Energy said the tariffs have dealt a 100 million euro ($116 million) hit to its third-quarter profit, and this was mainly due to one-offs in its long-term service agreements.
Despite the tariff uncertainty, U.S. demand for gas turbines and power transmission equipment — two key components its supplies — was rising, the company said, adding that it was now trending towards the upper end of its annual outlook.
Siemens Energy, which last month said it regained its ability to pay a dividend sooner than expected, forecasts sales growth of 13-15% and a profit margin before special items of 4-6%, compared with a respective 12.9% and 6% estimate in a company-provided poll.
Orders grew by nearly two-thirds to 16.6 billion euros in the third quarter, beating analyst forecast of 14.1 billion euros, and bringing the group’s order backlog to a new record 136 billion euros.
($1 = 0.8635 euros)
(Reporting by Christoph Steitz; Editing by Sandra Maler, Miranda Murray and Eileen Soreng)
