Siemens Shares Under Pressure as Tariffs Overshadow Record Performance

Siemens reports record €120B backlog and raises guidance, but shares fall 20% on fears US tariffs could cost €500M this year. New AI and automation products launched.

While Siemens AG posted impressive quarterly results and boasts an unprecedented order backlog, investor sentiment has been dampened by the looming financial impact of new U.S. trade policies. The industrial giant's stock has faced significant headwinds despite its operational strength.

Quarterly Strength Meets Macroeconomic Challenges

The company's first-quarter figures underscore its robust operational momentum. Revenue climbed 8% to reach €19.1 billion, driven by a 10% increase in new orders, which totaled €21.4 billion. A standout performer was the Digital Industries division, where profit surged by 37%. This performance has pushed the company's total order backlog to a historic €120 billion, prompting management to raise its full-year profit guidance.

However, the market's reaction has been muted. Since its peak in February, Siemens' stock has declined by more than 20%. This disconnect is largely attributed to recently imposed U.S. tariffs of 15%. Siemens estimates these duties could cost the company up to €500 million in the current fiscal year. The uncertainty is notably affecting key customer industries, such as machinery and automotive, and is curbing their willingness to invest.

Strategic Advances in Automation and AI

Beyond these external challenges, Siemens continues to advance its core business. On April 1, the company launched LOGO! 9, its first new generation of logic controllers in eleven years. The system offers a doubled number of function blocks and includes integrated safety features for industrial automation.

Simultaneously, Siemens is preparing for the Hannover Messe at the end of April. Among its showcases will be an AI-powered digital twin for supply chains, developed in collaboration with Nvidia and consumer goods giant PepsiCo. Such high-margin software solutions are currently fueling growth within the industrial business segment.

Leadership Transition Amid Market Volatility

During this demanding market phase, Siemens is also undergoing a change in its financial leadership. Veronika Bienert assumed the role of Chief Financial Officer at the beginning of April. Her predecessor, Ralf Thomas, will officially leave the Managing Board in mid-May but will remain with the conglomerate as a special advisor.

All eyes are now on May 13, when Siemens is scheduled to release its second-quarter results. This report will provide concrete data on margin development and reveal the true extent to which U.S. trade policy is impacting the industrial group's profitability.