Siemens Energy’s Record Order Book Can’t Halt the Stock’s Slide as Investors Look for Execution Proof
03.06.2026 - 15:34:12 | boerse-global.de
Siemens Energy is out on the road this week, making the rounds in Zurich, Munich, Copenhagen and Stockholm to sell its turnaround story to institutional investors. The pitch deck is packed: a record €17.7bn order intake in the second quarter, a fattened guidance for fiscal 2026, and a €6bn share buyback programme already underway. Yet the shares have been drifting south since April, when they touched an all-time high of €191.66. At €160.74, the stock sits roughly 18% below that peak, even as it remains 31% higher year-to-date.
The disconnect between operating momentum and share price performance is the central tension the management team now has to navigate. The problem is not demand. The company’s order backlog has ballooned to €154bn, giving it a book-to-bill ratio of 1.72 in the latest quarter. The comparable revenue growth came in at 8.9%, landing at €10.3bn. The real question, which analysts and fund managers are pressing on the roadshow, is whether Siemens Energy can convert that mountain of work into fat, sustainable margins — especially as large-scale projects carry execution risks and potential cost overruns.
Grid Technologies has emerged as the undeniable star. The division booked orders worth close to €7bn in the second quarter, a comparable jump of 41.5%, and posted revenue of €3.067bn, up 12.3%. For the full year, management now expects the unit to deliver revenue growth of 25% to 27% and an operating margin of 18% to 20%. The group as a whole has lifted its comparable revenue growth target to 14%–16% and its underlying earnings margin to 10%–12%, with net profit tipped at roughly €4bn and free cash flow before taxes at around €8bn.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Data centres are feeding a large slice of that growth. During a sponsor appearance at the Datacloud Global Congress in Cannes, Siemens Energy revealed that roughly 25% of its gas service orders now come from data centre projects. In the second quarter alone, it booked 5 gigawatts of orders from that segment out of a total of 12 GW, with the demand driven by hyperscalers such as AWS, Microsoft and Google as they power their AI workloads. The structural shift is still in its early innings: by 2030, data centres could account for 4% of global electricity generation, providing a long tailwind for Siemens Energy’s gas turbines, transformers and grid infrastructure.
The financial heft behind the story has been reinforced by a thumbs-up from Moody’s. Late May, the rating agency affirmed Siemens Energy’s Baa1 long-term rating and revised the outlook from stable to positive, citing improved credit metrics. Separately, Goldman Sachs added the stock to its “European Conviction List – Directors’ Cut,” with analyst Ajay Patel branding it a structural winner in the AI era. Patel estimates operating profit in 2030 will come in 10% above the market consensus and expects management to hike medium-term targets and provide more details on shareholder returns at the next annual results.
On that front, the company is already walking the talk. Siemens Energy plans to buy back up to €6bn of its own shares by the end of fiscal 2028. The first tranche, worth roughly €2bn, was completed between March and May 2026 — a fast execution that signals confidence in cash generation.
Despite all this, the stock has lost altitude since its April high. The second half of 2026 is 93% covered by orders, and even fiscal 2027 is already 80% secured. With such visibility, some investors may simply be waiting for the next catalyst. The next scheduled event is the third-quarter earnings release on 5 August, preceded by a quiet period that begins on 1 July. Before then, the management will appear at the J.P. Morgan European Industrials Conference on 17 June, and continue the remaining roadshow stops in Munich, Copenhagen and Stockholm — a tight window to convince the market that the new profitability trajectory is as durable as the order book suggests.
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