Siemens Energy: State guarantees redeemed early – will there be a dividend soon?

Siemens Energy has taken an important step: The company has fully repaid the more than eleven billion euros in federal aid it received in the crisis year of 2023 in the form of counter-guarantees. Instead, a new guarantee agreement for nine billion euros was concluded with a banking consortium of 23 institutions – entirely without government backing.

The technology group urgently needed government support at the time. On the one hand, its wind power division was struggling with significant problems, while on the other, its project business was growing rapidly – ​​coupled with high guarantee requirements. Given the strained situation, it was virtually impossible to obtain sufficient bank guarantees at reasonable terms. The €11 billion government guarantee closed this gap – for an annual fee of approximately €100 million, as CEO Christian Bruch explained to Handelsblatt.

The financial situation has since improved significantly. Siemens Energy is aiming for its second consecutive annual profit. Maria Ferraro, CFO of Siemens Energy, commented on Siemens Energy's approach: "The federal government's counter-guarantee was important in 2023 to secure the expected strong growth during a challenging period. Thanks to our performance over the past two years and an attractive market environment, we have significantly improved our margins and cash flow, as well as further strengthened our balance sheet. Therefore, we were able to redeem the federal government's guarantee before the end of the fiscal year, as planned."

This is also a positive signal for shareholders: With the end of government support, the dividend ban will end – starting with the new fiscal year in October. If the positive trend continues, dividends could flow for the first time in 2027.