Siemens Energy Lifts Cash Flow Target to €8 Billion as US Grid Boom Fuels Record Orders
13.05.2026 - 15:44:54 | boerse-global.de
Siemens Energy has more than doubled its full-year free cash flow guidance and delivered a surge in quarterly profit, underscoring how the global scramble to upgrade power grids and feed AI data centres is reshaping the company’s outlook. The group now expects free cash flow before taxes to reach roughly €8 billion in fiscal 2026, a sharp upward revision from the earlier range of €4 billion to €5 billion.
The new target comes on the back of a standout second quarter. Net profit jumped to €835 million from €501 million a year earlier, lifting diluted earnings per share to €0.89. Comparable revenue growth came in at just under 9%, and the order intake hit €17.7 billion — more than double the prior-year figure for US business alone. The order backlog swelled to a record €154 billion, providing multiyear revenue visibility.
Grid Technologies drives margin expansion
The Grid Technologies division remains the primary earnings engine, posting an operating margin before special items above 17% in the quarter. Management raised its full-year margin target for the segment to 18–20%, reflecting sustained demand for transmission infrastructure as renewable energy capacity expands worldwide. A key driver is the United States, where grid modernisation and the power needs of new AI data centres have propelled order intake to well over double last year’s level.
Free cash flow before taxes in the quarter reached €1.975 billion, supported by substantial customer advance payments tied to the record backlog. The improved cash generation gives the group greater flexibility to return capital to shareholders.
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Analysts raise targets as shares consolidate gains
JPMorgan responded to the results by lifting its price target to €225 and reaffirming an “overweight” rating. Analyst Phil Buller pointed to improving long-term prospects and the resilience of the business model demonstrated in the quarterly figures. The shares closed Wednesday at €176.84, up 3.01% on the day, though the stock remains 4.77% lower on a weekly basis — a sign that steep expectations are keeping some buyers on the sidelines.
Since the start of the year, Siemens Energy stock has gained 44.01%, and over twelve months the advance stands at 134.97%. The 52-week high of €188, set in the wake of earlier bullish momentum, is still within striking distance.
Gamesa targets breakeven; capital returns climb
The wind power subsidiary Siemens Gamesa, long a drag on group earnings, confirmed its goal of reaching the breakeven point this fiscal year. The division is expected to grow comparable revenues by 3–5% as operational stabilisation takes hold.
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On the capital return front, the group plans a dividend of €0.70 per share following this year’s annual general meeting, and has accelerated its share buyback programme to a total of €3 billion for fiscal 2026. Together, the two measures amount to roughly €3.6 billion in shareholder distributions. The company has also reiterated its full-year net profit forecast of around €4 billion, a slight upward nudge from the prior “at best” guidance.
Whether the stock can close the gap to its 52-week high depends largely on two factors: Grid Technologies must deliver on its higher margin promise, and Gamesa needs to prove the turnround is real. If both fall into place, the cash flow upgrade will rest on even firmer ground.
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