- EBIT margin (1) at 7.6% with a sound balance sheet, returning to a net cash position of €615 million
- Strong performance in Q4: revenue growth to €2,619 million (+12% YoY) and EBIT margin (1) at 8.2%
- Peak backlog of €22.8 billion (+10% YoY), boosted by stable order intake of €11.8 billion (+9% YoY), securing future growth
- Ready for the next phase of the company program L3AD2020, after achieving productivity improvements of €800 million, including €175 million in synergies
- Guidance set for FY 2019: revenues of €10-11 billion, EBIT margin (1) of 7-8.5% and on track to meet FY 2020 targets based on financial framework launched at CMD
Siemens Gamesa Renewable Energy today released its results for FY 2018 (October-September) and the fourth quarter (July-September).
In the full year, ended September 30, 2018, revenue amounted to €9,122 million, while EBIT pre-PPA, restructuring and integration costs was €693 million with an EBIT margin at 7.6%. The EBIT margin is impacted by double-digit price decline in onshore wind turbine business partially compensated by synergies and productivity and the strong performance in Service.
Net income continued to recover, reaching €70 million in FY 2018, including the impact of integration and restructuring costs (€176 million). The company increased its net cash position to €615 million at September 30.
In the fourth quarter (Q4) the company’s financial performance was strong, with revenue growth to €2,619 million (+12% YoY) driven by the recovery of onshore volume and a high level of offshore project execution, with an EBIT margin(1) at 8.2%. Net income amounted to €25 million.
The guidance for FY 2018 (revenues of €9-9.6 billion, EBIT margin(1) of 7-8%, working capital of -3%-3% and CAPEX of €500 million) was successfully achieved, laying the groundwork for profitable growth.
In FY 2018 the company resumed strong commercial activity, with order intake of €11,872 million (+9% YoY), boosted mainly by a recovery in onshore order intake (+30%, to €6,682 million). Intense activity in offshore, with good progress in new markets, raised order intake to €2,795 million. During the period, the company signed its largest-ever offshore order – an agreement to supply 165 turbines to Hornsea II, the world’s largest offshore wind farm to date. Within Service, the company signed contracts worth €2,395 million during FY 2018.
Siemens Gamesa achieved a new record backlog of €22.8 billion (+10% YoY), providing enhanced visibility for 2019 and beyond and reaching revenue coverage of 80% for FY 2019.
Siemens Gamesa fully met its first-year objectives and is on track for the next phase, focused on leveraging economies of scale and laying the foundations for sustainable profitability, after achieving productivity improvements of €800 million, including synergies above €175 million.
The company has set the guidance for FY 2019: revenues of €10-11 billion and EBIT margin of 7-8.5%, on track to meet FY 2020 targets based on financial framework launched at CMD.
Siemens Gamesa also announced today that it has appointed Christoph Wollny as Chief Operating Officer (COO). This newly-created function will support to better address current and future market dynamics and further strengthen cost-cutting efforts. Wollny brings 25 years of international experience in different industries and functions and joins SGRE from his current position as Chief Procurement Officer at Siemens’ Power & Gas division.
|Summary (2) of financial KPIs for FY18 and Q4|
|SGRE key figures||FY18 (Oct-Sept 2018)||Var.%||Q4 (July- Sept 18)||Var.%|
|Revenues:||€9,122 m||-17%||€2,619 m||+12%|
|Wind turbine revenues:||€7,847 m||-20%||€2,207 m||+10%|
|O&M revenues:||€1,275 m||+6%||€411 m||+28%|
|EBIT pre PPA, integration & restructuring costs:||€693 m||-11%||€215 m||NA|
|EBIT margin pre PPA integration & restructuring costs:||7.6%||0.5 p.p.||8.2%||9.0 p.p.|
|Net income:||€70 m||NA||€25 m||NA|
(1) EBIT pre PPA and I&R costs excludes the impact of PPA on the amortization of intangibles (€306min FY 18, and €66mn in Q4 18) and integration and restructuring costs (€176m in FY 18, and €76m in Q4 18).
(2) FY 17 data are calculated using pro forma values for October-March FY 17 figures, based on legacy businesses’ reported information (Siemens Wind Power, Gamesa and 100% of Adwen) including SWP standalone, normalization and scope adjustments, and historical values of SGRE for April-September FY 17.