Siemens Energy’s €154 Billion Backlog Faces Its First Real Test as Wind Sector Jitters Creep In
Published on 07/25/2026 at 17:33 | Redaktion boerse-global.de
The numbers coming out of Siemens Energy are staggering by any measure. With a record order book of €154 billion — up from €138 billion at the close of the last fiscal year — the industrial group has been stacking contracts at a pace that leaves peers like Rheinmetall (€73 billion) in the rearview mirror. But as the company enters its quiet period ahead of August 5 earnings, investors are asking a deceptively simple question: when does a mountain of orders become a mountain of profit?
The latest addition to that backlog came from 50Hertz, the German grid operator, which tapped a consortium of Siemens Energy and Neptun Smulders Offshore Renewables to build the converter platform for the North Sea Connector 2. The project, designed to channel two gigawatts of offshore wind power into the German grid, will feature an onshore converter near Schwerin and an offshore platform roughly 200 kilometers west of Sylt. Siemens Energy is supplying transformers, converters, and switchgear, with roughly 95 percent of the work sourced from German facilities in Rostock-WarnemĂĽnde and the Dutch port of Vlissingen. Commissioning is slated for the end of 2034, and the project is expected to create more than 500 permanent jobs in Mecklenburg-Vorpommern. A sister project, the North Sea Connector 1, is already under negotiation with 50Hertz.
Yet for all the contract wins, the stock has recently lost some momentum. Shares closed Friday at €150.70, down roughly 5.2 percent from 30 days ago. The proximate cause was a sector-wide tremor triggered by US competitor GE Vernova, whose quarterly update left investors uneasy about the wind power segment. Between July 22 and 24, Siemens Energy shed about 4.8 percent of its value, though it recovered to post a weekly gain of 1.78 percent. The stock still trades about 3.8 percent above its 200-day moving average — a technical signal that the medium-term uptrend remains intact, even if short-term nerves are showing.
Analysts have been quick to dismiss the selloff as overdone. Deutsche Bank reaffirmed its “Buy” rating with a €200 price target on July 23, with analyst Gael de-Bray calling the reaction to GE Vernova’s numbers excessive. Jefferies’ Lucas Ferhani, who set a €215 target on July 13, pointed to rising demand for grid technology driven by US data center buildouts for artificial intelligence. S&P Global added its own vote of confidence on July 3, upgrading Siemens Energy’s long-term issuer rating from “BBB” to “BBB+” on the back of improved profitability and stronger cash flow.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The company’s second-quarter numbers for fiscal 2026 already showed the underlying momentum: order intake of €17.7 billion against revenue of €10.3 billion, producing a book-to-bill ratio of 1.72. That means for every euro of revenue, the company booked €1.72 in new orders. But the critical question is how quickly that backlog converts to earnings, and the August 5 results will offer the first real test. The analyst consensus is calling for earnings per share of €1.17 on revenue of roughly €11.20 billion.
Beyond the grid business, Siemens Energy is pursuing multiple strategic fronts. The Algerian state-owned company Sonatrach confirmed on Thursday a memorandum of understanding with Siemens Energy to develop a hydrogen hub in Algeria, including potential local manufacturing of electrolyzers — a move that would plant the group’s flag in North Africa’s emerging hydrogen market. Closer to home, the company announced the phased introduction of a new corporate brand, “Omterra,” which will eventually replace the licensed “Siemens” name and fully integrate the Siemens Gamesa wind unit. Management estimates the rebranding will save hundreds of millions of euros annually in licensing fees.
Meanwhile, the company broke ground on July 17 for a new transformer factory in Mississippi, positioning itself to capture rising demand from US grid modernization. And a share buyback program of up to €1 billion, launched on June 4 and running through September 30, could provide additional support if the wind sector jitters subside.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
For now, Siemens Energy sits at an inflection point. The order book is a fortress, the grid business is firing on all cylinders, and the hydrogen and rebranding initiatives point to a company thinking beyond its current structure. But the August 5 earnings call will determine whether the market’s patience with the wind segment’s lingering uncertainty has finally run out — or whether the sheer weight of €154 billion in orders is enough to keep the rally alive.
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