Siemens Under Pressure from Currency Headwinds and Mixed Guidance

2 months ago

Chloe Malay

"So for Merc meanwhile we are seeing a drop for Seammens. What are the main challenges that they've been talking about? Yeah, so a lot to digest from Seammens this morning. So it actually set some near and medium-term targets. It also announced a kind of a broader revamp that includes trimming its stake in Seammens Health and Ears, which is the medical equipment unit that was spun off in 2018. And the goal of that is to free up capital and invest more in AI and software. And so analysts have said that that deconsolidation makes a lot of sense, that it's a logical step to simplify the group given that there's very little synergy between Health and Ears which makes MRI scanners and then Seammens which makes, you know, software for factories. So, you know, those are two very different things. But overall the results and the outlook disappointed a little bit. And we had JP Morgan analysts calling the results quite mixed saying that there's pressure on margin. There's currency headwinds really hurting the business as well. And that the medium-term guidance is actually quite opaque. It seems the company said that it expects those currency fluctuations to strongly burden profit and sales growth in 2026. So that clouds the outlook a little and we saw that reflected in shares a little bit weaker this morning as a result."

The segment covers the challenges facing Siemens (referred to as Seammens) including a revamp strategy that involves divesting non-core units to free up capital, mixed results, and significant headwinds from currency fluctuations that are expected to impact profit and sales growth in 2026. Analysts have flagged margin pressure and opaque medium-term guidance, contributing to a weaker share performance.

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