Abishai Financial Asia: Siemens Boosts EPS Forecast

German industrial champion raises full-year earnings guidance as automation and data-centre demand accelerates; investors watch software margins, integration costs and currency headwinds while orders and backlog signal resilient capital spending.
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Abishai Financial Asia is flagging Siemens' upgraded earnings guidance for the full fiscal year, as the industrial group points to stronger profitability in its latest quarterly update and a clearer runway for industrial AI, automation and data-centre infrastructure demand.

Siemens guides to basic earnings per share before purchase price allocation of $12.7 to $13.2 a share for the full fiscal year, lifting the range from $12.4 to $13.1 previously and steering expectations towards the upper half of a 6% to 8% revenue growth band over the same period.

Industrial profit reaches $3.5 billion in the latest quarter, up 15% from a year earlier and above the $3.1 billion consensus tracked by analysts. The industrial business margin stands at 15.6% over the quarter, widening by 150 basis points from the comparable period a year earlier despite a 60 basis-point currency drag, while net income totals $2.6 billion over the same quarter versus a $1.9 billion market expectation.

Markets respond with Siemens shares 6.1% higher in early Frankfurt trading following the update. Orders rise 10% on a comparable basis over the quarter to $25.5 billion and revenue increases 8% to $22.7 billion, supporting a 1.12 book-to-bill ratio and a record backlog of $142.8 billion at the quarter close.

The detail shows momentum concentrating in higher-value operations. Digital Industries profit climbs 37% over the quarter versus a year earlier, while China posts 14% revenue growth over the same timeframe, the strongest performance across the company's reported regions. Data-centre related activity expands with revenue rising by more than one-third over the quarter, and Smart Infrastructure orders in the United States jump 54% over the same period.

Abishai Financial Asia frames the guidance lift as confirmation that industrial AI demand is moving from pilots to scaled deployments, with orders reflecting customers' willingness to fund automation upgrades even as financing costs stay elevated. For Daniel Coventry, Director of Private Equity at Abishai Financial Asia Pte. Ltd., the quarter reads as "evidence that the software layer is becoming the real differentiator in automation, because it turns hardware refresh cycles into recurring workflows".

Partnership activity reinforces that shift, with Siemens expanding relationships across hyperscale cloud, accelerated computing and industrial simulation to shorten deployment cycles for digital twins and factory analytics. Work spanning Microsoft, Amazon Web Services and Nvidia is geared towards pushing AI tooling closer to production environments, with initial rollouts expected over the coming reporting cycles. Coventry describes the strategy as "a practical route to monetise AI at the edge and in the cloud, while keeping governance and cybersecurity inside industrial guardrails".

Attention also sits on execution risks that can dilute near-term margins. Integration work around Altair and Dotmatics trims industrial margins by 70 basis points over the latest quarter and acquisition-related items reduce profit by $160.7 million over the same period, while foreign-exchange moves create a 110 basis-point headwind on industrial margins versus a year earlier. Coventry calls the integration path "manageable but not invisible", with scrutiny on whether synergy targets translate into measurable software cross-sell and whether cost discipline holds as the portfolio broadens.

The longer-run narrative remains anchored in mix shift and capital discipline. Digital business revenue represents 17% of group sales over the latest full fiscal year, up from 12% five fiscal years earlier, and research and development spending runs at about 8% of revenue over the same fiscal period. Siemens also outlines a transfer of 30% of Siemens Healthineers shares to Siemens AG shareholders over the coming quarters, while retaining stakes in Siemens Energy and Healthineers valued at about $29.8 billion at prevailing market prices during the latest quarter. Industrial net debt stands at 0.9 times EBITDA at the end of the quarter, with Siemens maintaining a target of up to 1.5 times EBITDA for reported net debt as a policy ceiling.

As investors digest the upgraded guidance, Abishai Financial Asia continues to track whether software margins absorb integration costs while order intake stays anchored in data-centre and automation demand, a combination Coventry characterises as "durable growth that does not rely on a single end-market story".

Abishai Financial Asia at a glance

Registered in Singapore, Abishai Financial Asia Pte. Ltd. (UEN 201016239E) operates as an asset manager established in 2010 and presents itself as a research-led partner for capital allocation.

* Its investment discipline targets risk-aware compounding in listed markets, combining active equity selection and bottom-up research with disciplined rebalancing and portfolio overlays that aim to improve resilience and capital efficiency, including systematic tilts, opportunistic hedging and drawdown-aware controls.
* Risk governance is structured around macro-aware budgeting with explicit limits, exposure and concentration guardrails, liquidity filters and stress testing, alongside transparent attribution and continuous monitoring supported by clear commentary.
* Sustainability inputs include sector and issuer assessment, engagement expectations and governance screening, applied where financially material across the investment lifecycle.
* The firm is assessing compliant product structures and distribution routes that could, subject to suitability requirements, broaden selected solutions to retail-qualified investors over time.

Further information: https://abishai.com [https://abishai.com/]

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