Services: Sales growth continues

Note: Unless otherwise indicated, changes from the previous year are based on organic figures (adjusted for currency effects and acquisitions, divestitures/deconsolidations).

In the first half of 2024, the Services division continued its growth momentum from 2023, seeing double-digit growth in both order intake and sales. Order intake increased by 12.6% (H1 2023: 22.1%) and sales by 12.0% (H1 2023: 11.3%) compared with the same period in the previous year, with all regions and product lines contributing to the growth. Operational profitability remained constant at 14.2%. This is a result of the division’s ongoing investment in its geographic reach and technical capabilities to meet growing demand.

Building resilience with lifecycle solutions

Increased global focus on efficiency and decarbonization, coupled with an aging installed base, has spurred demand for everything from spares and repairs to upgrades and retrofits. With a growing network of over 100 service centers worldwide, the Services division is relying on its profound technical expertise across industries and locations to deliver full aftermarket, energy-efficient solutions – quickly.

In Asia, Services recently performed an extensive rotor and generator repair overhaul at a 1’200 MW thermal power plant following an unexpected technical failure. The team delivered a full repair to “as-new” specifications, securing energy for approximately one million homes per month. Moreover, the solution provided an estimated 20-year lifetime extension, with efficiency savings of 45%. The division is also currently expanding its footprint in the region, opening a new service center in Thailand to ensure local availability of specialized maintenance support for rotating equipment.

With over 5'000 retrofits completed worldwide to date, the Services division is also delivering significant performance benefits and energy-efficiency improvements through its deep understanding of its customers’ infrastructure. For a pipeline in North America, the division has upgraded the pumps with new fluid dynamics, parts and materials to reduce not only the customer’s energy consumption and costs but also its emissions.

In another example, following a devastating earthquake and other severe weather events in southeast Turkey, Services drew on its global network to assess the damage and rapidly source the necessary parts for extensive repairs to boiler feed pumps at a power plant. While ensuring that the 1’300 MW power station was quickly restored to the country’s national grid, the division also worked with the site’s management team to develop an optimal strategy to help minimize downtime in the event of similar unexpected incidents.

Key figures Services (January 1 – June 30)

Continued strong growth

Continuing its growth trajectory, the Services division increased order intake by 12.6% year-on-year. Both the Americas and Asia-Pacific saw double-digit growth in H1 2024, driven by increasing energy demand and new net-zero emission targets for customers. Retrofits for legacy equipment continue to drive demand, with the division leveraging its broad technical expertise across industries and locations.

Strong sales performance

All regions contributed to significant sales growth of 12.0%. Operational profitability remained stable at 14.2%. This is a result of the division’s ongoing investment in its geographic reach and technical capabilities to meet growing demand.

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