Siemens Energy's Wind Division Ends Four-Year Drought as Record Orders Reshape the Growth Story
Published on 08/13/2026 at 15:52 | Redaktion boerse-global.de
The turnaround at Siemens Energy has reached a symbolic milestone that many market watchers thought might take years longer to arrive. For the first time since fiscal 2022, the company's troubled wind turbine subsidiary Siemens Gamesa has delivered a profitable quarter — a development that CEO Christian Bruch described as a "fantastic performance by the team" and that fundamentally changes the narrative around a business that has weighed on the group's results for years.
The figures, released on August 5, show a company firing on nearly all cylinders. Revenue climbed 18.5 percent on a comparable basis to €11.4 billion, while operating profit before special items nearly tripled to €1,623 million from €497 million in the same period last year. Earnings per share roughly doubled to €1.28, up from €0.71. Free cash flow before taxes surged to €2,319 million, a dramatic improvement from the €419 million recorded a year earlier.
An Order Book That Keeps Growing
Perhaps the most striking metric, however, sits in the company's pipeline. Order intake reached a record €17.9 billion, pushing the book-to-bill ratio to 1.57 — meaning Siemens Energy is collecting far more work than it can process. The order backlog swelled to €162 billion, providing multi-year visibility that gives management rare planning certainty in an industry often characterized by lumpy demand.
Gas Services led the charge with a record order intake of its own, while Grid Technologies and the Transformation of Industry division also posted strong gains. The offshore grid business received additional momentum from a major contract: together with Dragados, Siemens Energy was selected by Amprion Offshore GmbH to build converter stations for the DolWin4 and BorWin4 projects. Media reports put the contract value in the high hundreds of millions of euros, making it the largest offshore grid connection order the company has ever secured.
Guidance Confirmed, Targets Within Reach
Management used the occasion to reaffirm its full-year outlook for fiscal 2026, projecting comparable revenue growth of 14 to 16 percent and an operating margin before special items of 10 to 12 percent, with management signaling a tendency toward the upper end of those ranges. Net profit is expected to land at around €4 billion, with free cash flow before taxes of roughly €8 billion.
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The guidance carries particular weight given that Siemens Energy had already raised its growth forecast in May from 11 to 13 percent. The third-quarter numbers now validate that upgrade, with the company's performance exceeding analyst expectations across multiple metrics.
Within the divisions, Gas Services is targeting comparable revenue growth of 16 to 18 percent at a margin of 14 to 16 percent, while Siemens Gamesa aims for revenue growth of 3 to 5 percent and breakeven profitability at the margin level.
Analysts Split on Valuation, United on Fundamentals
The market's response has been broadly constructive, though not uniformly enthusiastic. Deutsche Bank lifted its price target on August 10 from €200 to €210, maintaining a buy recommendation. UBS analyst Christopher Leonard had already raised his target from €175 to €210 in late July, also with a buy rating.
Barclays' Vlad Sergievskii struck a more cautious note, downgrading the stock from "Equal Weight" to "Underweight" in late July — yet even he increased his price target from €110 to €130. The move captures the tension at the heart of the current debate: the operational improvement is difficult to dispute, but after a 36 percent rally since the start of the year, some argue the valuation has caught up with the fundamentals.
The stock closed Wednesday at €163.70, up 3.0 percent on the day and 6.3 percent over the past week. That leaves it about 16 percent below the 52-week high of €195.38 reached in April — a gap that looks increasingly bridgeable if the current trajectory holds.
Structural Changes on the Horizon
Beyond the numbers, Siemens Energy is preparing for a period of significant organizational change. Vinod Philip, currently strategy chief and CTO, will take over the newly created Global Functions board division in October, overseeing IT, procurement, innovation, and project execution. In November, Anne-Laure de Chammard, currently CEO of ENGIE Energy Solutions International, joins as the board member responsible for Transformation of Industry.
The company is also pressing ahead with the rebranding announced in July: Siemens Energy and Siemens Gamesa will eventually operate under the umbrella brand Omterra, with the transition expected to begin gradually in late 2026. The existing licensing agreement with Siemens, which costs around €300 million annually, remains in place until 2030.
Investors now have their sights set on late August, when structural decisions regarding the Transformation of Industry division are expected. With a record order book, a wind business finally in the black, and a management team executing on multiple fronts, the company enters that decision point from a position of strength rather than necessity.
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