Fitch Affirms Siemens at 'A+'/Stable; Withdraws Rating

Fitch Ratings has affirmed Siemens AG's Long-Term Issuer Default Rating (IDR) at 'A+' with a Stable Outlook.

Fitch has subsequently withdrawn the rating.

The affirmation is supported by Siemens' strong business profile and reflects our view that the company will continue to perform within its rating sensitivities throughout the forecast horizon to 2029, despite the future deconsolidation of Siemens Healthineers. Fitch expects a recovery in profitability for the financial year ending September 2026 (FY26) as the destocking impact eases in Siemens' core markets and the company expands its software capabilities through acquisitions.

Siemens' robust operating profile supports margins through the cycles and benefits from high financial flexibility stemming from consistently positive free cash flow (FCF) and low leverage at the industrial business division. This underpins the Stable Outlook.

Fitch has withdrawn Siemens' ratings for commercial reasons and will no longer provide ratings or analytical coverage of the company.

Key Rating Drivers

Recovery in Profitability: We expect Siemens' improved industrial EBITDA margin to stabilise at levels consistent with the 'A' category through to 2029, superior to many diversified industrial peers'. This is supported by a strategic portfolio restructuring focused on higher-margin segments, including expanded software capabilities through the Altair acquisition, and by operational efficiency gains. The planned deconsolidation of Siemens Healthineers is in alignment with its shift towards the more profitable technological sectors.

Sustainable Positive FCF: Fitch forecasts Siemens to generate positive FCF margins to 2029, which is in line with the rating. Siemens continues to demonstrate a robust ability for cost absorption without affecting its FCF metrics, despite our forecast of ongoing working-capital outflows, a shareholder-friendly dividend policy and capex at 3% of revenue.

Sustainably Low Industrial Leverage: Siemens maintains a robust and conservative capital structure, especially for its industrial business. We expect EBITDA net leverage to remain well within our rating sensitivities throughout the cycle on strong EBITDA generation. This is despite our conservative expectation that the Siemens Healthineers disposal will not affect its current capital structure and the impact of its Altair acquisition impact being realised sooner than expected in 2025.

Continuing Order Backlog Momentum: Fitch believes Siemens' order backlog of EUR117 billion provides revenue visibility that supports our expectation for stable profitability throughout the cycle. The prompt recovery in its digital industries division after destocking pressures eased by FYE25 underscores Siemens' market leadership. The mobility business remains the strongest contributor to the backlog, demonstrating Siemens' ability to capitalise on favourable market trends.

Sustained Strong Liquidity: Siemens' conservative financial policy will translate into continuing robust liquidity in the medium term. It has consistently demonstrated its commitment to maintaining robust liquidity, despite its large investments in acquisitions, digitalisation projects, stable capex and normalisation of working-capital outflows.

Adjustment for Financial Services: Fitch rates Siemens on an industrials-only basis and adjusts its consolidated debt to account for its financial services business.

Peer Analysis

Siemens is one of the world's largest industrials conglomerates, and is comparable with Honeywell International Inc. (A/Rating Watch Negative), Rockwell Automation, Inc. (A/Stable), and Caterpillar Inc. (A+/Stable).

Fitch forecasts Siemens' industrials operations to maintain an average EBITDA net leverage that is lower than Rockwell's and Honeywell's, justifying the one-notch difference, while it will remain slightly higher than that of Caterpillar and Atlas Copco AB (A+/Stable).

We expect Siemens' FCF margins to remain broadly in line with that of peers, such as Honeywell, but lower than that of Atlas and Caterpillar.

Siemens has a competitive advantage over 'A' category peers in its business profile. It stands out as the leading European diversified manufacturer with consistently higher R&D spending and more patent applications than peers. This strategy effectively protects its market leadership in healthcare and automation.

Fitch's Key Rating-Case Assumptions

Revenue to decline on Siemens Healthineers disposal until 2027, followed by high single-digit growth from 2028 on recovery of digital industries and consistently solid growth of smart infrastructure

Industrials EBITDA margin on average at 17% to 2029

Capex at 3% of revenue to 2029

No sizeable M&As from 2026 onwards

Dividends and ongoing share buybacks as guided by Siemens

Financial services' debt/equity to remain fairly stable to 2028

Corporate Rating Tool Inputs and Scores

Fitch scored the issuer as follows, using our Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP):

Business and financial profile factors (assessment, relative importance): Management (bbb, Lower), Sector Characteristics (a+, Higher), Market and Competitive Positioning (a-, Moderate), Diversification and Asset Quality (a+, Moderate), Company Operational Characteristics (a+, Higher), Profitability (bbb+, Moderate), Financial Structure (a, Moderate), and Financial Flexibility (aa-, Higher).

The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year FY25, 40% for the forecast year FY26 and 40% for the forecast year FY27.

Assessments of the quantitative financial subfactors also include bespoke calculations.

The Governance assessment of 'Good' results in no adjustment.

The Operating Environment assessment of 'a+' results in no adjustment.

The SCP is 'a+'.

To derive the IDR: No other consideration applied.

RATING SENSITIVITIES

Not applicable as the ratings have been withdrawn.

Liquidity and Debt Structure

Siemens' liquidity comprised EUR13.7 billion of cash at FYE25, after Fitch's adjustment for about EUR1.5 billion of cash as restricted for intra-year working-capital swings. Its short-term debt amounted to about EUR10.4 billion. Siemens' liquidity is further supported by consistently positive FCF generation and credit facilities of about EUR10 billion, which remained fully undrawn at FYE25.

Our assessment of Siemens' financial flexibility at 'aa-' and financial structure at 'a' supports its Short-Term IDR at 'F1+'.

Issuer Profile

Siemens is a diversified industrials company focused on automation and digitalisation in the process and manufacturing industries, intelligent infrastructure for buildings and distributed energy systems, smart mobility solutions for rail and road and medical technology, and digital healthcare services.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS

Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.

Climate Vulnerability Signals

The results of our Climate.VS screener did not indicate an elevated risk for Siemens.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores .

RATING ACTIONS

Entity / Debt

Rating

Prior

Siemens Financieringsmaatschappij N.V.

senior unsecured

LT

A+

Affirmed

A+

senior unsecured

LT

WD

Withdrawn

Siemens AG

LT IDR

A+

Affirmed

A+

LT IDR

WD

Withdrawn

ST IDR

F1+

Affirmed

F1+

ST IDR

WD

Withdrawn

senior unsecured

ST

F1+

Affirmed

F1+

senior unsecured

ST

WD

Withdrawn

Page

of 1

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure: Siemens AG, Siemens Financieringsmaatschappij N.V.

APPLICABLE CRITERIA

Corporates Recovery Ratings and Instrument Ratings Criteria (pub. 03 Aug 2024) (including rating assumption sensitivity)

Corporate Rating Criteria (pub. 10 Jan 2026) (including rating assumption sensitivity)

Sector Navigators - Addendum to the Corporate Rating Criteria (pub. 10 Jan 2026)

APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

Corporate Monitoring & Forecasting Model (COMFORT Model), v8.2.0 (09 Jan 2026, 09 Jan 2026)

ADDITIONAL DISCLOSURES

Dodd-Frank Rating Information Disclosure Form

Solicitation Status

Endorsement Policy

With respect to this RAC, if the lead analyst is based in an EU or UK registered entity, the issuer(s) will be displayed below in the following colour when the ratings provided are unsolicited and the issuer(s) did not participate in the rating process, or provide additional information beyond the issuer's available public disclosure.

Non Participating Unsolicited Issuers

Siemens AG

Siemens Financieringsmaatschappij N.V.

ENDORSEMENT STATUS

Siemens AG 	EU Issued, UK Endorsed

Siemens Financieringsmaatschappij N.V. 	EU Issued, UK Endorsed

Unsolicited Issuers

Siemens AG (Unsolicited)

With Rated Entity or Related Third Party Participation 	No

With Access to Internal Documents 	No

With Access to Management 	No

Siemens Financieringsmaatschappij N.V. (Unsolicited)

With Rated Entity or Related Third Party Participation 	No

With Access to Internal Documents 	No

With Access to Management 	No

DISCLAIMER & DISCLOSURES

All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings. In addition, the following https://www.fitchratings.com/rating-definitions-document details Fitch's rating definitions for each rating s

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Solicitation Status

The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below.

Unsolicited IssuersENTITY/SECURITY	ISIN/CUSIP	RATING TYPE	Solicitation Status

Siemens Financieringsmaatschappij N.V. EUR 30 bln program - medium term note	-	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1.5 bln 3.625% bond/note 22-Feb-2044	XS2769892600	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 3% bond/note 22-Nov-2028	XS2769892519	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 3.625% bond/note 27-May-2036	XS3078501684	Long Term Rating	Unsolicited

Siemens AG USCP	-	Short Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.75 bln 6.125% Notes 17 Aug 2026	US826200AD92	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 0.25% bond/note 20-Feb-2029	XS2118276026	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 750 mln 0.5% bond/note 20-Feb-2032	XS2118273601	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.25 bln 1.7% bond/note 11-Mar-2028	US82620KBD46	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1.25 bln 3.375% bond/note 22-Feb-2037	XS2769892865	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 500 mln 2.5% bond/note 08-Sep-2027	XS2526839258	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 500 mln 3.5% bond/note 24-Feb-2036	XS2589792220	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 500 mln 4% bond/note 27-May-2045	XS3078501254	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1 bln 3.3% bond/note 15-Sep-2046	US82620KAM53	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.25 bln 3.4% bond/note 16-Mar-2027	US82620KAU79	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 0.5% bond/note 05-Sep-2034	XS2049616894	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 650 mln 0.9% bond/note 28-Feb-2028	XS1955187775	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.75 bln 2.15% bond/note 11-Mar-2031	US82620KBE29	Long Term Rating	Unsolicited

Siemens AG	-	Long Term Issuer Default Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 500 mln 0.625% bond/note 25-Feb-2027	XS2446843430	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 3% bond/note 08-Sept-2033	XS2526839506	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 2.625% bond/note 27-May-2029	XS3078501338	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 0.125% bond/note 05-Sep-2029	XS2049616621	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 800 mln 1.75% bond/note 28-Feb-2039	XS1955187932	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln Floating bond/note 27-May-2027	XS3078501767	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 100 mln 3.5% Gtd Notes 20 Mar 2028	XS0906140966	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.7 bln 2.35% bond/note 15-Oct-2026	US82620KAL70	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.5 bln 4.2% bond/note 16-Mar-2047	US82620KAT07	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln Zero bond/note 20-Feb-2026	XS2118280218	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 750 mln 1.25% bond/note 25-Feb-2035	XS2446846888	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1.25 bln 3.125% bond/note 22-May-2032	XS2769894135	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1.25 bln 3.375% bond/note 24-Aug-2031	XS2589790109	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 500 mln 3.125% bond/note 27-May-2033	XS3078501502	Long Term Rating	Unsolicited

Siemens AG	-	Short Term Issuer Default Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. GBP 650 mln 3.75% Gtd Notes 10 Sep 2042	DE000A1G85D0	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 800 mln 1.25% bond/note 28-Feb-2031	XS1955187858	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 0.375% bond/note 05-Jun-2026	XS2182054887	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.5 bln 2.88% bond/note 11-Mar-2041	US82620KBF93	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 1 bln 2.875% bond/note 10-Mar-2028	DE000A1UDWN5	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.75 bln 4.4% Gtd Notes 27 May 2045	US82620KAF03	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. USD 1.75 bln 1.2% bond/note 11-Mar-2026	US82620KAZ66	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 750 mln 1% bond/note 25-Feb-2030	XS2446844594	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 500 mln 2.75% bond/note 09-Sep-2030	XS2526839761	Long Term Rating	Unsolicited

Siemens Financieringsmaatschappij N.V. EUR 750 mln 3.625% bond/note 24-Feb-2043	XS2589790018	Long Term Rating	Unsolicited

Fitch's solicitation status policy can be found at www.fitchratings.com/ethics.

Endorsement Policy

Fitch's international credit ratings produced outside the EU or the UK, as the case may be, are endorsed for use by regulated entities within the EU or the UK, respectively, for regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch's approach to endorsement in the EU and the UK can be found on Fitch's Regulatory Affairs page on Fitch's website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis.

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