For Siemens Energy, a Banner Week of Orders and Policy Wins Is Overshadowed by One Analyst’s Caution

Shares fell 9.46% after Barclays downgrade, overshadowing offshore converter deal, Oman gas-turbine order, and Germany's new gas power plant law unlocking billions in revenue.

Siemens Energy notched a series of headline-grabbing milestones last week: a major offshore converter contract in the North Sea, a gas-turbine order from Oman, and a new German law unlocking billions in potential revenue for its turbine business. Yet the stock closed the week down 9.46%, at €152.00 on Friday, hammered by a single bearish call from Barclays that investors deemed more decisive than the flurry of positive news.

The most concrete catalyst came from 50Hertz, the transmission system operator, which awarded a consortium of Siemens Energy and NSORe the contract to build an offshore converter for the North Sea Connector 2 project. The facility, to be manufactured in Rostock and supplemented by work in Vlissingen, will channel wind power from an area roughly 200 kilometers west of Sylt into Germany’s grid. The construction is expected to create more than 500 permanent jobs in Mecklenburg-Vorpommern, with commissioning scheduled for the end of 2034. Separately, the same consortium is already negotiating a second, nearly identical project — North Sea Connector 1 — with a potential order value estimated at €2.5 billion. If both go ahead, Siemens Energy’s offshore grid-connection portfolio, a longstanding focus of its Transmission division, would see substantial expansion.

The company also secured a major turnkey contract in Oman, supplying gas and steam turbines plus generators for two power plant projects totaling approximately 2.6 GW of capacity. The plants are designed for later conversion to hydrogen operation, and the deal includes long-term service agreements — the kind of recurring revenue that buffers cyclical swings in new equipment orders.

On the policy front, Germany’s Bundestag passed the so-called Gaskraftwerks-Gesetz on July 10, authorizing the construction of 11 GW of new gas-fired power plants that must come online by the end of 2031 and be convertible to hydrogen by 2045. For Siemens Energy, one of the world’s largest gas-turbine manufacturers, the legislation opens a potentially enormous home market. That political tailwind is reinforced by the broader push for offshore wind expansion: Lower Saxony’s state premier Olaf Lies recently called for faster buildout and voiced concern that already-tendered projects totaling 16 GW could be at risk. The state’s renewable energy association warned that €32 billion of investments in Lower Saxony and roughly 280,000 jobs across Germany’s renewables sector hang in the balance if the pace slows. Delays in grid connections would only increase demand for converter systems like those in the North Sea Connector program.

Nevertheless, the shares declined 2.73% on Friday alone, unwinding gains from earlier in the week. Barclays analyst Vlad Sergievskii downgraded the rating from “Equal Weight” to “Underweight”, arguing that the gas-turbine business has already reached its operational peak. Although he raised the price target from €110 to €130, that still lies far below the current €152. The bank projects a record free cash flow of approximately €7.62 billion for fiscal 2026 but expects demand to normalize thereafter — skepticism that appeared to weigh heavily on sentiment. Other analysts took a distinctly more positive view: RBC reaffirmed its “Outperform” rating and lifted its target from €200 to €210, while JPMorgan stuck with its bullish stance.

The technical picture reflects the conflicting signals. At €152.00, Siemens Energy shares now sit 22.3% below the 52-week high of €195.54 touched on April 24, but also nearly 80% above the 52-week low of €84.62 from September 2, 2025. The Relative Strength Index of 42.6 indicates neither overbought nor oversold conditions, while the annualized 30-day volatility of about 60% underlines the market’s current nervousness. The stock has fallen below its 50-day moving average of €165.46 but remains some 6.5% above the 200-day moving average of €142.72, suggesting the long-term uptrend is intact despite the recent pullback. Year-to-date the equity is still up 23.78%, and over twelve months it has gained 68.93%. The market capitalization stands at €129.41 billion.

Siemens Energy is now in a quiet period ahead of its fiscal third-quarter results on August 5, with management refraining from public comment until then. In the meantime, investors must weigh a string of solid operational and political developments against a single analyst’s contention that the best of the cycle is behind the company — a tension that is likely to keep the stock volatile in the weeks ahead.