Siemens Energy Lifts Guidance and Accelerates Buyback, but a €154 Billion Order Backlog Tests Capacity
13.06.2026 - 16:33:03 | boerse-global.de
The industrial group’s record-breaking order book has become a double-edged sword. Siemens Energy booked €17.7 billion in new contracts in the second quarter of its fiscal year 2026, lifting the total backlog to an unprecedented €154 billion. Yet that pile of work is also squeezing the company’s ability to convert it quickly into revenue. Around 87 gigawatts of gas turbine orders are sitting in the pipeline, with some clients waiting up to four years for delivery. The tension between staggering demand and operational capacity now shapes the investment debate around the stock.
Strong Results Prompt a Sharp Upgrade
The backlog explosion was driven overwhelmingly by the Grid Technologies division, which is capitalising on the global build-out of power networks and the insatiable energy appetite of artificial intelligence data centres. Comparable group revenue climbed 8.9% to €10.3 billion in the quarter. Net profit jumped to €835 million from €501 million a year earlier. Free cash flow before tax reached €1.975 billion, bolstered by customer advances and better operating performance.
Encouraged by the momentum, management has torn up its old targets. Comparable revenue growth for the full year is now expected to land between 14% and 16%, up from the prior range of 11% to 13%. The operating margin before special items is forecast at 10% to 12%. Net profit should come in at around €4 billion, while free cash flow before tax is seen at approximately €8 billion — almost double the original €4–5 billion target. Grid Technologies alone is projected to grow revenue by 25%–27% and deliver a margin of 18%–20%.
CEO Christian Bruch pointed to the AI data centre boom as a key driver for gas turbines, noting that cancellations have so far been zero. The company sees itself firmly positioned in that segment.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Buyback Accelerated as Management Signals Confidence
Alongside the upgraded outlook, Siemens Energy is speeding up its shareholder return programme. A new buyback tranche of up to €1 billion runs from early June through the end of September 2026. During the first week of June, the company repurchased 237,040 of its own shares. The overall programme, which runs until the end of fiscal 2027/2028, allows for up to €6 billion in buybacks. Combined with dividends, total shareholder distributions for 2026 could reach €3.6 billion.
Market observers view the accelerated buyback as a clear vote of confidence from the board. A Metzler analyst described the stock as an "extraordinarily attractive buying opportunity" and set a price target of €205.
Stock Remains Under Pressure Despite Fundamentals
For all the bullish signals, the share price has been drifting lower. At €153.46, it sits roughly 21% below its April peak of €195.54. The stock has lost about 14% in the past month alone. The relative strength index of 42.7 points to a neutral to slightly oversold position. On a year-to-date basis the shares have still gained roughly 25%, and the year-over-year advance is around 79%.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
Investors looking for near-term catalysts have two dates on the calendar. CFO Maria Ferraro is scheduled to speak at the J.P. Morgan European Industrials Conference on 17 June and at the ODDO BHF London Forum the following day. The market will be listening closely for updates on capacity strategy and the turnaround at the wind-turbine subsidiary Siemens Gamesa, which is supposed to deliver a positive earnings contribution by the end of this fiscal year.
The gap between operational strength and stock market sentiment remains wide. With the next quarterly report due in the autumn, the case for a re-rating hinges on whether the company can show it is managing the delivery bottleneck as effectively as it is winning orders.
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Siemens Energy Stock: New Analysis - 13 June
Fresh Siemens Energy information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
