Siemens Energy Accelerates €3bn Buyback as Record Orders Pile Up, but Gamesa Cloud Lingers

Siemens Energy lifts share buyback pace after Q2 net profit jumps 66%, record orders hit €17.7bn, and full-year guidance raised. Stock up 40% YTD.

A surge in orders and a sharp profit improvement have given Siemens Energy the confidence to ramp up its share buyback programme, accelerating the pace of a scheme that could see up to €3bn returned to shareholders by the end of the 2026 financial year. The announcement came alongside a second-quarter performance that hit new highs on several fronts, cementing the turnaround story that has driven the stock up almost 40% since the start of the year.

Revenue for the period climbed to around €10.3bn, a modest 3.3% increase year-on-year, but the real momentum was on the bottom line. Net profit jumped to €835m from €503m a year earlier, translating into diluted earnings per share of €0.89 — a 78% gain. The operating result before special items rose to €1.16bn, reflecting improved cost discipline and a favourable product mix, particularly in grid technology and gas turbines.

Order intake hit a record €17.7bn, pushing the backlog to a staggering €154bn. The book-to-bill ratio of 1.72 means the group is selling far more than it can currently deliver, a clear sign that the investment cycle in electricity infrastructure is running at full throttle. Management responded by lifting its full-year guidance, now expecting revenue growth of 14–16% and a net profit above €4bn.

The strong run has not gone unnoticed in the analyst community. Jefferies lifted its price target to €215 from €164, citing robust orders and nascent improvements at the troubled wind turbine unit Siemens Gamesa. Other major houses have followed suit: JPMorgan sits at €225, Goldman Sachs at €212, and both Deutsche Bank and Berenberg at €200. Bank of America flags potential upside of as much as 50% from current levels. With a market capitalisation of roughly €144bn, Siemens Energy now ranks among the largest constituents of the DAX, a valuation that already prices in considerable optimism.

The main wild card remains Gamesa. While first signs of stabilisation have emerged — fewer special charges and more predictable project execution — the unit is still being nursed back to profitability. Analysts see 2026 as the first realistic chance of a meaningful dividend rebound, pencilling in €1.83 per share against last year’s €0.70. That would be a powerful signal if the operational recovery holds.

On the charts, the stock closed Monday at €175.56, having regained ground after a brief bout of profit-taking the previous week. It now trades roughly 7% above its 50-day moving average of €163.50, and technician’s eyes are on the €165 support level. A clean hold there would put the year’s high of €188 back in play. The next concrete test comes on 5 August, when the group releases third-quarter figures and investors will demand further proof that the order pipeline and Gamesa progress can justify the premium rating.