๐ฆ๐ถ๐ฒ๐บ๐ฒ๐ป๐' ๐ข๐ก๐ ๐ง๐ฒ๐ฐ๐ต ๐๐๐ฟ๐ฎ๐๐ฒ๐ด๐ ๐๐ป๐ฑ๐ฒ๐ฟ๐๐ต๐ฒ๐น๐บ๐
I've spent some time this morning digesting Siemens' new strategy. Here's a summary of my analysis.
Siemens has unveiled its new ONE Tech strategy, aiming to transform itself from a traditional industrial conglomerate into a more software-driven company.
A major move in the strategy is Siemensโ intention to distribute a 30% stake in Siemens Healthineersโits medical-equipment subsidiaryโto shareholders as a dividend. Although this divestment frees up capital and removes a low-synergy business from Siemensโ balance sheet, the fact that no external buyer seems willing to take the stake is a concern.
The latest quarterly figures (Q3 CY2025 / Q4 FY2025) were broadly in line with expectations. Revenue grew 3% to โฌ21.4 billion, orders fell 4% due to a strong prior year, net profit declined 13% due to restructuring costs, but free cash flow rose to a record โฌ10.8 billion. Still, the strategic roadmap drew the most attention.
With ONE Tech, Siemens wants to better integrate its Digital Industries, Smart Infrastructure and Mobility divisions around customer needs. The company is targeting 6โ9% annual revenue growth overall, with Digital Industries expected to grow 15% per year. Siemens plans to deepen its leadership in industrial software and expand aggressively in the US, China and India. It will invest โฌ1 billion in AI over three years and expand its team of 1,500 AI specialists.
However, several structural challenges remain. Many factories are still too customised to scale software solutions quickly. Competitionโespecially from Chinese industrial software providersโis intensifying. The biggest concern may be talent: Germany is losing AI experts to China and the US, raising doubts about Siemensโ ability to attract and retain the people needed to execute its strategy.
Although the broader German tech and industrial ecosystem is showing new signs of lifeโlarge AI and datacenter investments from Deutsche Telekom, NVIDIA, and GoogleโSiemensโ own long-term targets still imply a slow ramp-up. The share price had surged 30% this year in anticipation of the new strategy, leaving the stock on a high 22ร earnings multiple. By the โrule of 40,โ Siemens still scores far too low to excite most technology investors.
Let me know if you have a different view.
Kind regards,
Jean-Paul
$SIE.DE (Siemens Aktiengesellschaft)$SHL.DE (Siemens Healthineers AG)... Show More
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Mon Dec 15 2025 07:14:33 GMT+0000 (Coordinated Universal Time)
