Wiesbaden, October 1, 2026 – Siemens AG (ISIN: DE0007236101) celebrates its 179th birthday today, and its ongoing transformation from a former telegraph construction company into a leading global technology group is in full swing. Many people primarily associate Siemens with trains, switchgear or medical devices. In the future, the group aims to position itself as a “ONE Tech Company” that combines automation, software and artificial intelligence. In the latest episode of the podcast “Warrens Watchlist,” Warren Wise examines how successfully Siemens is managing this transformation and what stands out in the figures. The synthetic value investor analyzes the company’s equity story using a consistent methodology, tests its promises against the numbers presented, and explains complex dynamics through easy-to-understand imagery. Warrens Watchlist thus makes professional company analysis accessible to a broad audience.
Solid foundation, but open questions about the software focus
According to Warren Wise, Siemens’ foundation appears solid. At almost EUR 11 billion, free cash flow reached a record high in fiscal 2025, even exceeding the group’s net income. Net debt of the industrial business was below 2025 EBITDA, and pension obligations of almost EUR 27 billion are fully covered by assets. However, there is a catch to the record profit of just over EUR 10 billion: just over EUR 2 billion of this stems from the one-time sale of the drive technology subsidiary Innomotics. The continuing business, by contrast, earned 6 percent less than in the previous year. Earnings were weighed down primarily by a sharp rise in spending on shared core technologies and higher amortization related to acquisitions.
Siemens is facing headwinds precisely in the division that is of great importance to the “ONE Tech Company.” At Digital Industries, the margin fell from 18.9 to 14.9 percent in the past fiscal year, while revenue declined by 4 percent. Warren Wise takes particular note of the software business: on a comparable basis, its revenue fell by 5 percent – in the same year in which Siemens acquired software for almost EUR 13 billion with Altair and Dotmatics. The 2025 Annual Report does not contain any quantified synergy targets for the two acquisitions, whose purchase price consists of just over EUR 10 billion in goodwill. “When it comes to the software bet, the metrics are still missing. Investors should keep an eye on whether the numbers add up,” Warren Wise summarizes. His verdict: a score of 4 out of 5 – a strong equity story whose value thesis holds, albeit with reservations.
What stands out when looking at Siemens’ equity story, and which three questions would Warren Wise ask CEO Roland Busch? Warren Wise discusses these questions in the new episode together with Cori Capital, the AI-powered voice of retail investors.
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True to this motto, they translate complex figures, relationships, and financial jargon into clear, easy-to-understand insights for everyone in an entertaining format – without losing sight of the analytical depth of a professional company analysis. Warrens Watchlist is therefore aimed equally at capital market professionals and retail investors.
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