Siemens Earnings: Record 2023 Closes With Good Momentum; 2024 Guidance in Line

Wide-moat Siemens closed a record fiscal 2023 with positive momentum heading into 2024. Fourth-quarter organic order growth of 6% has propelled the group’s order backlog to EUR 111 billion, which will provide a strong foundation for growth in fiscal 2024. Full-year 2024 guidance of revenue growth at between 4% and 8% marginally exceeds company-compiled consensus of 5%. Record free cash flow of EUR 10 billion has supported an 11% dividend increase to EUR 4.7 per share and expanded the share buyback program. Shares are trading 5% higher, but remain undervalued to our EUR 166 fair value estimate, which we maintain. Siemens remains our preferred pick in the sector due to its attractive growth outlook and valuation discount to peers.