Siemens Energy closes a record year and targets a margin of up to 22% by 2030

Siemens Energy closed its 2026 financial year with record revenue and more than double the profit of the year before, the company said in its earnings release on Wednesday 11 November. Net income rose to EUR 4.13 billion from EUR 1.69 billion, and the group proposed a dividend of EUR 2.30 per share, up from EUR 0.70.

The Munich-based maker of gas turbines, grid equipment and wind turbines also set new mid-term targets. By fiscal 2030 it wants a profit margin before special items of 20% to 22%, compared with 12.4% in the year just ended. Its forecast of around EUR 5 billion in net income for fiscal 2027 was about 10% below the analysts' average of EUR 5.5 billion, Investing.com reported.

A record year in numbers

Orders in fiscal 2026, which ended on 30 September, reached EUR 68.1 billion, up 18.8% on a comparable basis. Revenue grew 15.5% on the same basis to EUR 44.2 billion, and every segment contributed to growth, according to the company. With orders running well ahead of sales, the book-to-bill ratio was 1.54.

Profit before special items more than doubled to EUR 5.49 billion from EUR 2.36 billion. Free cash flow before tax nearly doubled to EUR 8.8 billion, helped by customer advance payments and reservation fees from buyers who want to secure production capacity. The company said it had met or exceeded all of the guidance targets it raised during the year.

The wind business reached an important milestone. Siemens Gamesa, which had lost almost EUR 1.4 billion before special items a year earlier, broke even for the full year. It also posted a positive quarterly result for the second quarter in a row.

The fourth quarter

In the July to September quarter, revenue rose 21.5% on a comparable basis to a record EUR 12.8 billion. Profit before special items more than tripled to EUR 1.54 billion, ahead of the analysts' average of EUR 1.47 billion cited by Investing.com. Net income was EUR 1.36 billion.

Orders grew 5.2% to EUR 14.8 billion, which the company described as a normal moderation after three exceptionally strong quarters. That was below the EUR 15.5 billion analysts expected. The order backlog still rose to a record EUR 164 billion. Siemens Gamesa and the Transformation of Industry unit both earned less than forecast in the quarter, the latter partly because of disruption in the Middle East, according to Investing.com.

More cash for shareholders

On top of EUR 3.1 billion of share buybacks carried out during fiscal 2026, Siemens Energy plans to buy back up to EUR 9 billion more of its shares through the end of fiscal 2030. It announced that plan on Tuesday evening, as we reported overnight. The proposed dividend equals around half of net income attributable to shareholders, adjusted for extraordinary non-cash effects.

"We will capitalise on strong markets and execute our record backlog with discipline, while allocating capital with the same rigor," chief financial officer Maria Ferraro said in a statement quoted by Bloomberg.

The outlook for 2027 and 2030

For fiscal 2027, Siemens Energy expects comparable revenue growth of 14% to 16% and a profit margin before special items in the same range. It forecasts net income of around EUR 5 billion and free cash flow before tax of around EUR 10 billion. Gas Services is expected to grow revenue by 24% to 26% and Grid Technologies by 22% to 24%. Siemens Gamesa expects revenue to fall slightly and a margin of 0% to 2%.

Through fiscal 2030, the group aims for average annual revenue growth of 12% to 14%. The company said demand from data centres for artificial intelligence is likely to drive further investment in power generation and grid infrastructure, especially in North America. Data centre customers account for more than a quarter of sales at the gas services business, Bloomberg reported.

Why the share price matters

The new targets come after a difficult few months for the stock. Siemens Energy shares have fallen roughly 36% since a record high in April, according to Bloomberg, after rising more than tenfold from the start of 2024 to that peak. Handelsblatt quoted fund managers at Deka and Union Investment who said the market had come to value the company as a winner of the AI boom, and that cooling enthusiasm for the sector had weighed on the shares.

Chief executive Christian Bruch said on Wednesday that the company had met all of its raised forecasts, clearly increased its earnings and reached break-even in wind, according to Handelsblatt.

The group is also reshaping itself. In August it began preparing to separate its Transformation of Industry business, which has about 17,000 employees and had EUR 5.7 billion in revenue in fiscal 2025, with the aim of deconsolidating it while keeping a meaningful minority stake.

What it means for European founders and investors

For investors, the results show a company that is generating far more cash than it did two years ago and is choosing to return a large share of it. The weaker than expected 2027 profit forecast and the falling share price are a reminder that markets are already testing how long the boom in power equipment can last.

For founders, the numbers show where large industrial budgets are going. Gas turbines and grid equipment are the fastest growing parts of the business, and Siemens Energy expects both to grow by more than 20% next year. Start-ups that help utilities and manufacturers build, monitor or run grids and power plants are selling into a market with long order books and customers under pressure to add capacity. We have covered the same trend in GE Vernova's planned purchase of Trench Group and in Infineon's outlook for AI data centre power.

Spotted an error? Email contact@europreneursmedia.com and we'll correct it. See our corrections policy and editorial standards.