Siemens Energy: €2.5B Converter Option and Oman Turbine Deal Bolster Pre-Close Optimism

Siemens Energy secures offshore converter station with €2.5B option, Oman gas turbine deal, and beats Q3 order consensus by 4%, boosting shares to €166.76.

Siemens Energy has given investors a double dose of concrete contract wins just ahead of its third-quarter earnings report, as a pre-close briefing signalled further upside to the order book. The stock jumped around 4% on the day to €166.76, moving within sight of a 52-week high that still sits some 15% higher at €195.54.

Megadeals in the North Sea and Oman

The most eye-catching news came from the offshore grid segment. Siemens Energy, together with partner NSORe, won the contract for the “North Sea Connector 2”, an offshore converter station that will link a German wind farm to the onshore grid. The facility will be built in Rostock, securing more than 500 jobs at the site. Crucially, the contract includes an option for a second converter with an estimated value of around €2.5 billion – a potential repeat order that would further cement the company’s position in the booming subsea power transmission market.

Separately, a major gas turbine order landed from the Middle East. Siemens Energy will supply six F-class gas turbines and six generators for two combined-cycle gas-and-steam power plants in Misfah and Duqm, Oman, with a combined capacity of 2.6 gigawatts. The deal is backed by service contracts spanning 20 years, underscoring the long-term revenue stream that accompanies such infrastructure projects.

Pre-Close Briefing Beats Expectations on Orders

These project wins came alongside a management pre-close call that gave a taste of what to expect when official numbers are published on 5 August. The company indicated order intake of approximately €17.7 billion for the third quarter, a figure roughly 4% ahead of consensus estimates. Both the Gas Services and electricity transmission divisions were flagged as particular standouts.

Analysts were quick to react. Jefferies reiterated its buy rating with a price target of €215, citing rising confidence in the gas turbine market and grid build-out in the US. Lucas Ferhani noted the “robust order momentum”. At the Bankhaus Metzler, Nikolas Demeter singled out potential upside surprises from steam turbines and power transmission. Citigroup also highlighted the strong order development at Gas Services.

Structural Tailwinds from AI and Heatwaves

The broader environment continues to favour Siemens Energy on multiple fronts. Surging electricity demand from data centres and artificial intelligence infrastructure is driving massive investment in grid stability and power generation, both core strengths for the company. The current heatwave across Europe is also lifting demand for baseload power, keeping gas turbines running at high utilisation.

For the full year, management is guiding for revenue growth of 14% to 16% and a net profit of around €4 billion. The order backlog, already swollen by earlier record quarters, looks set to expand further.

Berlin DAC Plant: A Long?Term Bet on Carbon Removal

In parallel with its core business, Siemens Energy is advancing a pilot project in direct?air capture (DAC). On 2 July 2026, the company and its partner Ucaneo will inaugurate Germany’s first industrial?scale DAC plant in Berlin. The facility will capture 150 tonnes of CO? annually using Siemens Energy’s automation platform Simatic PCS neo. The partners have set a long?term ambition to scale the technology to 0.5 gigatonnes of CO? per year by 2035. For now, however, the real earnings drivers remain the conventional gas turbines and grid equipment.

Stock Near 50?Day Average, Gamesa in the Background

At the current €166.76, the stock is trading just below its 50?day moving average of €168.42, with a neutral relative?strength index of 53.3. Year?to?date, the shares have added around 36%, while the 12?month gain stands at nearly 80%.

Investors are also keeping an eye on the wind power subsidiary Gamesa, whose turnaround remains a work?in?progress. While not a near?term catalyst, any improvement there could provide further support. For now, the focus is squarely on the 5 August report, where the market will see whether the pre?close promises of strong orders and margins in gas turbines and grid technologies actually translate into the bottom line.