Siemens Smart Infrastructure (SI) has outlined ambitious targets to drive its next phase of growth and value creation, building on its recent success.

During its Capital Market Event, SI announced upgraded mid-term goals, including a comparable revenue growth target of 6-9% and a profit margin range of 16-20% over a three-to-five-year cycle.

These objectives underscore the company’s commitment to sustainable growth, margin expansion, and cash generation, with a focus on innovation and value creation in key markets, it noted in its press release.

Record-Breaking Financial Performance

Siemens SI exceeded its previous targets, achieving an 11% compound annual growth rate (CAGR) for revenue between fiscal years 2020 and 2024.

The division also reported a record profit margin of 17.3% in fiscal 2024, well above the targeted range of 11-16%.

Digital business revenue more than doubled during this period, reaching Euro 1.7 billion—ahead of its Euro 1.5 billion target by one year. These results reflect Siemens SI’s strong market performance, outpacing competitors and contributing significantly to Siemens’ overall sustainability goals.

Fiscal 2025 Objectives and Market Trends

Looking ahead, SI aims to achieve revenue growth of 6-9% and a profit margin range of 17-18% for fiscal 2025.

The company is strategically positioned to leverage global megatrends, including electrification, decarbonisation, resource efficiency, and the integration of data and artificial intelligence. In fiscal 2024, SI helped customers avoid 44 million tonnes of CO₂ emissions, highlighting its role in supporting decarbonisation efforts.

Innovation and Digitalisation Driving Growth

SI plans to expand its digital portfolio, focusing on high-margin, data-driven products to increase recurring revenue.

Recent innovations, such as the SENTRON ECPD electronic circuit protection device and the environmentally friendly blueGIS portfolio, exemplify SI’s commitment to sustainability and technological leadership.

The company’s Building X, Electrification X, and Gridscale X platforms, part of the Siemens Xcelerator ecosystem, contributed to a 20% growth in its digital offerings over the past year.

Strengthening Market Leadership

SI continues to lead in several sectors, including medium voltage switchgear, digital building services, and grid planning.

The business achieved above-market growth across all units, driven by rising demand for electrification and digital solutions.

In fiscal 2024, SI’s data centre business grew by over 50%, securing Euro 3.6 billion in orders.

This success was supported by long-term relationships with hyperscaler operators and investments in scaling capacity to meet demand.

Strategic Investments and Acquisitions

To reinforce its market position, SI has prioritised strategic acquisitions, including Brightly Software in 2022 to enhance digital building operations and Danfoss Fire Safety in 2024 to strengthen fire safety solutions.

These investments align with SI’s strategy to foster growth in high-potential markets, including healthcare, power utilities, and data centres.

Expanding Addressable Market

SI’s addressable market is projected to grow 5-6% annually, reaching Euro 300 billion by 2029, up from Euro 185 billion in 2020.

The business is set to capitalise on this growth by focusing on scalable products, sustainable solutions, and localised strategies in stronghold markets like the United States and India.

Leadership and Vision

“Having exceeded our past targets, we are now raising the bar with new ambitions for growth and value creation,” said Matthias Rebellius, CEO of Smart Infrastructure and member of Siemens AG’s Managing Board.

“Our position as a global technology leader allows us to help customers operate profitably and sustainably, meeting their financial and environmental goals in a competitive market,” he added.

Ralf P Thomas, Siemens AG’s Chief Financial Officer, added: “SI has demonstrated remarkable success through a well-executed transformation. Its continued focus on innovation and operational excellence makes it a key pillar of Siemens’ overall growth strategy.”