Siemens Energy Bags C$1.3 Billion Pickering Refit While Launching EUR 2 Billion Buyback Tranche
Published on 09/27/2026 at 10:20 | Editorial boerse-global.de
Siemens Energy has kicked off the final stretch of its 2026 fiscal year with a pair of moves that speak to both sides of its story: a hefty Canadian nuclear contract on the operations front, and a fresh capital return program on the balance sheet side.
The Munich-based energy technology group, together with construction partner Aecon, secured a major order on September 21 at the Pickering nuclear power station in Ontario. The consortium will handle a comprehensive replacement of the plant's turbine generators, a project carrying a total volume of C$1.3 billion — roughly EUR 800 million. For Siemens Energy, the win reinforces the persistent demand in its conventional power plant and service business.
Rotor Swaps, Stator Rewinds and a Record Order Book
The Pickering scope involves demanding technical work on existing infrastructure. It calls for replacing 14 steam turbine rotors, overhauling the generators and rewinding the stators. On top of that, the partners will supply new auxiliary systems and install modern control and monitoring technology to keep the nuclear plant running reliably over the long haul.
That North American addition lands on top of an already well-stocked pipeline. In the third quarter of 2026, the group's global order backlog climbed to a record EUR 162 billion, underpinned by quarterly order intake of EUR 17.9 billion. Management is targeting an adjusted earnings margin at the upper end of its 10% to 12% guidance range for the full year. The wind power subsidiary Siemens Gamesa also contributed a positive standalone operating result in the third quarter — its first since 2022.
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Buyback, Board Change and the Road to Omterra
Alongside the operational news, the company is pressing ahead with its capital allocation plans. A third tranche of its share repurchase program will see it buy back up to EUR 2 billion worth of its own stock, covering no more than 50 million shares and running until March 31, 2027 at the latest.
There is also a changing of the guard in the supervisory board. Matthias Rebellius is stepping down from the control body at his own request as of September 30, 2026, with Pekka Lundmark — Nokia's chief executive from 2020 to 2025 — taking his seat on October 1, 2026. The handover brings additional industrial experience to the top of the oversight organ.
The reshuffle coincides with Siemens Energy's continued push for independence from former parent Siemens AG. According to media reports, the conglomerate's stake has now slipped below the 5% threshold. Further financial breathing room should come from the planned brand change: the switch to the name Omterra is expected to eliminate annual licensing fees of around EUR 300 million starting at the end of 2026.
Portfolio Surgery and Analyst Support
Structural changes are moving forward in parallel with the new business. Roughly a month ago, the supervisory board approved the spin-off of the Transformation of Industry division, which bundles the steam turbine and hydrogen operations. That unit generated revenue of EUR 5.7 billion in fiscal 2025 with around 17,000 employees and an 11.3% margin. The plan is to establish it as a standalone entity.
Analysts, meanwhile, remain constructive. Berenberg reaffirmed its "Buy" rating on Friday and kept its price target at EUR 205. The market has partly bought into that optimism: the stock is up 20% since the start of the year.
Shares closed Friday at EUR 144.06, leaving the paper about 26% below its 52-week high of EUR 195.38. Investors had weathered some turbulence in recent weeks — mid-September brought temporary jitters over a slowdown in artificial intelligence development that weighed on technology and equipment names, briefly pressuring Siemens Energy. With the global appetite for energy transition equipment still strong, observers nonetheless counsel vigilance given the macroeconomic backdrop. A pre-close call on the fourth quarter, scheduled for September 30, should shed light on the company's latest operating condition before the detailed earnings release.
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