Siemens Energy Closes €2 Billion Buyback as Analysts Lift Dividend Forecast to €1.84

Siemens Energy shares end week at €173.72 after completing €2B buyback; analysts see dividend tripling to €1.84, with technical resistance at €188 and catalysts ahead.

Siemens Energy shares ended the week at €173.72, extending their year-to-date rally to over 41%, as investors cheered the completion of a €2 billion share repurchase and growing expectations for a dividend nearly three times last year's payout. The stock has now crossed above its 38-day moving average, with chart watchers eyeing the 52-week high of €188.00 set in late April as the next resistance level.

The company bought back exactly 12,618,469 of its own shares between March 4 and May 19, representing 1.465% of its share capital at an average price of €158.50 apiece. The transactions were handled via Xetra and three other trading venues, with an independent institution deciding the timing of each purchase. The repurchased securities are earmarked for employee programmes or possible cancellation. That €2 billion tranche was only the beginning: Siemens Energy has accelerated a subsequent installment from the next fiscal year, lifting its total buyback programme for 2025/26 to as much as €3 billion. By 2028, the group plans to return roughly €10 billion to shareholders, with €6 billion of that coming through share buybacks.

The decision to front-load buybacks was fuelled by an unexpected surge in operating cash flows. Pre-tax cash flow jumped 42% in the second quarter to €1.98 billion, helped by advance payments on new orders. The order intake hit an all-time high of €17.7 billion, swelling the order backlog to €154 billion. Combined with dividend payments, Siemens Energy expects to distribute around €3.6 billion to shareholders in fiscal 2026 alone.

On the dividend front, sentiment is turning distinctly bullish. The group paid out €0.70 per share in March — its first distribution in four years — and analysts now expect that figure to climb as high as €1.84 for the current year. A key enabler is the recovery at wind turbine subsidiary Siemens Gamesa, which is targeting an operational turnaround and breakeven in 2026. Management recently raised its full-year guidance, forecasting revenue growth of up to 16%, an underlying margin of 10–12%, and net income of around €4 billion.

Technically, the stock has built a solid base. The share price currently sits well above its 50-day moving average near €165, which aligns with an initial support zone between €165 and €170. Below that, the 100-day line at roughly €156 serves as a medium-term anchor. The average analyst price target stands at €186.30, just shy of the 52-week high. Despite the recent rally, the stock remains about 7.6% below that peak, suggesting some room for further upside if the momentum continues.

Investors can expect fresh catalysts in the weeks ahead. Management is scheduled to present at the Berenberg Innovation Seminar in Zurich on June 2, and the next set of quarterly results is due on August 5. Until then, the market will focus on how quickly Siemens Gamesa can return to profitability and how the group manages its record order book — two factors that will ultimately determine whether the dividend forecast becomes reality.