Siemens Energy Shares Test Key Support Despite Accelerated €3 Billion Buyback
Published on 05/28/2026 at 16:35 | Redaktion boerse-global.deSiemens Energy’s stock has slipped into a two-day losing streak that brings it within striking distance of a crucial technical level, even as the company accelerates its share buyback programme and continues to generate record levels of cash. The contrasting signals underscore a market that has already priced in much of the recent operational progress.
After closing at €175.04 on Wednesday, the shares dropped a further 3.59% on Thursday to €168.76, making it the weakest performer in the DAX for a second consecutive session. The cumulative decline over seven days now stands at roughly 3.7%. Analysts attribute the move to profit-taking after a ferocious rally that has more than doubled the stock from its 52-week low of €82.96 and still leaves it about 37% higher year-to-date.
The immediate level to watch is the 50-day moving average at €167.14. With the shares barely above that threshold, the integrity of the longer-term uptrend hangs in the balance. The relative strength index sits at 56.7, comfortably away from overbought territory, suggesting the sell-off has not become panicked. From the 52-week high of €188.00, reached on 24 April, the stock is now roughly 10% off the peak.
Under the surface, the fundamental picture remains exceptionally strong and explains why the buyback programme is being pulled forward. Between 4 March and 19 May 2026, Siemens Energy repurchased 12,618,469 own shares, equivalent to 1.465% of its share capital, at an average price of around €158.50 per share. The €2 billion first tranche was completed in just 77 trading days, well ahead of the original August deadline.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Management has now decided to accelerate the next tranche, lifting the total buyback target for the current financial year from €2 billion to €3 billion. The overall programme, announced in November, remains capped at €6 billion, but the faster pace reflects a surge in operating cash generation. The free cash flow before tax jumped 42% in the second quarter to €1.975 billion, up from €1.390 billion a year earlier, powered by improved earnings and strong customer prepayments.
The company’s ability to convert its booming order book into cash is the engine behind the payout acceleration. In the second quarter, order intake hit €17.7 billion, giving a book-to-bill ratio of 1.72, while the total order backlog swelled to €154 billion. Revenue rose 8.9% on a comparable basis to €10.3 billion, and earnings before special items improved to €1.164 billion from €906 million in the prior-year period, led by a turnaround at Siemens Gamesa.
Demand in the United States more than doubled year-on-year, and the data-centre segment alone contributed nearly €2 billion of orders to Grid Technologies in the first half. Management has lifted its full-year guidance accordingly, now targeting comparable revenue growth of 14-16%, an earnings margin before special items of 10-12%, net profit of roughly €4 billion, and free cash flow before tax of around €8 billion.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
The buyback acceleration, together with the dividend already paid, means Siemens Energy expects to return €3.6 billion to shareholders this year, with a cumulative total of about €10 billion planned by 2028 — of which €6 billion will be via share repurchases. The bought-back shares are earmarked either for employee programmes or for cancellation, which would mechanically lift earnings per share.
The valuation, however, remains the stock’s most exposed flank. Even after the two-day pullback, the shares trade well above their average purchase price under the buyback and at a substantial premium to their important moving averages. With the next catalyst — third-quarter results due on 5 August 2026 — still weeks away, the 50-day line at €167.14 will determine whether this correction fades into a brief pause or signals something more lasting.
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