Siemens Energy Charges Higher on US Data Center Demand: Record Orders, Doubled Cash Flow, and a Narrowed Gamesa Loss

Siemens Energy posts record Q2 orders of €17.75B, backlog surges to €154B as US data center operators drive demand for gas turbines and grid equipment.

The insatiable appetite of artificial intelligence for computing power is reshaping America’s energy infrastructure, and Siemens Energy is reaping the benefits. The German industrial group posted a record order intake of €17.75 billion in its fiscal second quarter, swelling its total backlog to an unprecedented €154 billion. The surge was fueled overwhelmingly by US data center operators scrambling to secure power generation and grid equipment.

Orders from the United States more than doubled compared with the same period last year, with organic revenue growth in the Americas hitting 33%. The company’s Gas Services division alone collected nearly €9 billion in new business, corresponding to 12 gigawatts of capacity. Of that, roughly 5 GW is tied directly to American data centers. Meanwhile, the Grid Technologies unit locked in €2 billion in transformer orders for data centers over the first six months of the fiscal year — a clear signal that the demand extends beyond generation into transmission infrastructure.

The robust intake translated into a strong bottom line. Siemens Energy generated a free cash flow before taxes of just under €2 billion in the quarter, a 42% improvement. That performance prompted management to more than double its full-year cash flow forecast to approximately €8 billion, up from a previous range of €4 billion to €5 billion. Net profit for the quarter came in at €835 million, and the company now targets a full-year net income of around €4 billion, compared with earlier guidance of €3 billion to €4 billion.

Revenue growth expectations were also raised sharply. The company now sees full-year sales expanding by 14% to 16%, one to three percentage points above its prior forecast. The margin before special items is expected to land between 10% and 12%, a full percentage point higher than before.

The group’s long-troubled wind power subsidiary, Siemens Gamesa, is finally showing signs of recovery. Its operating loss narrowed to €44 million from nearly €250 million a year earlier, and the unit is forecast to reach breakeven in the second half of the fiscal year — a milestone that would remove a significant drag on group profitability.

The strong operational momentum has attracted a wave of analyst attention, though opinions on valuation remain divided. JPMorgan raised its price target to €225 with an overweight rating, while Deutsche Bank set a new target of €200. Analyst Gael de-Bray cited the improved earnings outlook and highlighted upcoming medium-term targets for 2030, which Siemens Energy plans to unveil in November. On the other side, Barclays sees fair value at just €110, and mwb research recommends selling, arguing that the operational strength is already fully reflected in the share price.

At the market, the bulls have had the upper hand for now. Having more than doubled from a 52-week low of €73.60, the stock was trading around €179, a gain of roughly 46% since the start of the year and 141% over the past twelve months. The shares closed at €178 on Wednesday, comfortably above their moving averages, keeping the 52-week high of €188 within striking distance if the momentum holds.