Post-spinoff Siemens Pakistan faces slowing markets

Siemens (Pakistan) Engineering Company Ltd (PSX: SIEM) has reported a markedly reshaped set of financials for the year ended 30 September 2025 – its first full reporting year straddling the separation of its energy business – and the headline story is a smaller company confronting softer end-market demand.

On the surface, the results looked like a turnaround: the company swung to a net profit of Rs829.4 million (earnings per share Rs100.57) in FY2025, compared with a net loss of Rs2.048 billion the year before.

But that profit recovery is not the clean, demand-led rebound the bottom line suggests. The more telling figure for operating momentum sits inside the continuing businesses – the portfolio Siemens Pakistan kept after divesting its energy segment. Net sales and services from continuing operations fell to Rs8.855 billion in FY2025 from Rs9.698 billion in FY2024, a decline of roughly 9%.

That might sound modest compared to the dramatic change in the group’s total revenue base – and it is. Total net sales and services (continuing plus discontinued operations) dropped to Rs12.427 billion from Rs35.166 billion once the energy operations were stripped out. But the key point for investors trying to value “post-spinoff Siemens Pakistan” is that even within the remaining portfolio, demand softened rather than accelerating into a clean post-carveout growth narrative.