FRANKFURT, Germany — German industrial giant Siemens said on Thursday its quarterly profits jumped sharply, driven by demand for production software as well as the “boom” in artificial intelligence and customers upgrading power grids.
Net profit was 1.98 billion euros ($2.2 billion) from April to June — up about 50 percent from a year earlier and higher than analyst forecasts — on revenue of 18.9 billion euros.
Siemens, whose sprawling global business runs from making trains and factory equipment to systems that manage data centers, said its software business performed strongly, winning a series of major contracts.
The electrification arm of the group also grew by more than 20 percent, said Chief Executive Officer Roland Busch.
“We are benefiting from the boom in artificial intelligence and the accelerated energy transition,” he told journalists after the results were released.
“On the one hand, many new data centers are being built, and on the other, power grids are being expanded to accommodate more renewable energy.”
The group’s “smart infrastructure” division, which includes the electrification business, reported revenues were up 10 percent overall from a year earlier.
But sales fell in its industrial automation business, which covers areas like automating factories.
Orders were down 16 percent overall from the same quarter in 2023, although that period saw a bumper crop of train orders.
The “mobility” division, which includes the train business, saw orders drop 70 percent.
The Munich-based group confirmed its outlook of achieving revenue growth of 4 to 8 percent over its 2024 fiscal year, which runs to the end of September.
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