FRANKFURT (Reuters) – Siemens on Thursday raised its medium-term targets for its Smart Infrastructure (SI) division, which helps automate buildings and offices, in a market expected to be worth more than 300 billion euros ($320 billion) here 2029.
This division, which provides systems and products to control heating, lighting and access to buildings, is now targeting a profit margin of 16 to 20% over the next 3 to 5 year cycle, Siemens announced during of an investor day for unity in Switzerland.
Previously, Siemens targeted a profit margin of 11-16% for SI, which has grown in importance in recent years as companies seek to reduce energy costs and improve the environmental footprint of their sites.
SI’s revenue is expected to increase by 6 to 9% organically.
“SI has been and will continue to be a key pillar of Siemens’ overall success,” Ralf Thomas, chief financial officer of Siemens AG, said in a statement.
“With the mid-term targets announced today, we are confident that SI will continue to deliver strong revenue growth, margin expansion and liquidity, not only for SI, but also for Siemens as a whole.”
During its last fiscal year, completed in September, SI increased its margin to a record 17.3%, becoming Siemens’ most profitable division, ahead of factory automation, whose sales and profits increased. fell in 2023 due to difficulties in China and Germany.
(Written by Christoph Steitz and John Revill, Elena Smirnova, edited by Augustin Turpin)
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