Siemens Energy Forges AWS Cloud Deal as Grid Orders Surge to €17.75 Billion, but Gamesa Recovery Remains the Wild Card

Siemens Energy deepens AWS partnership for digital transformation, reports record €17.75B Q2 orders, raises 2026 forecast, and announces €6B share buyback.

Siemens Energy has deepened its ties with Amazon Web Services, naming the tech giant its strategic cloud provider for a sweeping digital transformation. In return, the German industrial group will deliver turnkey substation solutions for Amazon’s data centres and explore gigawatt-scale power generation and microgrid options for the U.S. company. The partnership, which builds on an existing IoT platform already running on AWS infrastructure, gives Siemens Energy access to cloud services like Amazon Bedrock and SageMaker to automate manufacturing, supply chains and plant operations.

Accelerating automation is timely. The group’s grid division just recorded a second-quarter order intake of €17.75 billion – a 29.5% jump year-on-year and well above the €15.6 billion analysts had pencilled in. Grid Technologies alone saw orders climb 41%, cementing its role as the prime growth engine. For the full 2026 fiscal year, management now expects comparable revenue growth of 14-16%, up from an earlier 11-13% forecast, while the Grid segment itself is targeting 25-27% top-line expansion with an operating margin of 18-20%.

The buoyant order book translated into a net profit of €835 million for the quarter, compared with €501 million a year earlier. Underpinning the numbers, Siemens Energy raised its full-year guidance in April and now projects a net profit of around €4 billion for 2026. Free cash flow before taxes should hit roughly €8 billion – a figure that makes generous shareholder returns possible. The annual general meeting in February approved a dividend of €0.70 per share for fiscal 2025, the first payout since 2022, and the company has launched a share buyback programme of up to €6 billion by the end of 2028. The first tranche of up to €2 billion is already under way; in the first week of May alone, Siemens Energy repurchased around 635,000 of its own shares, bringing the cumulative total to more than 10.8 million shares since the programme started.

Yet the aviation-sized KPI that keeps investors on edge remains Siemens Gamesa. The wind-power subsidiary continued to burn money in the second quarter, posting a loss of €46 million – an improvement on prior quarters but still far from break-even. Management has reconfirmed its goal of reaching profit before special items by the end of the current fiscal year, but a strong offshore recovery in the second half is an explicit condition for the upgraded group outlook. The Mistral restructuring programme and the reliability of the onshore 4.X and 5.X platforms will be the main focal points when the full half-year report lands on Tuesday.

Those lingering doubts are visible in the share price. At €178.10, the stock sits roughly 5% below its 52-week high of €188.00, even after a 45% rally since January and a 141% gain over the past twelve months. The relative strength index hovers around 50, suggesting the equity is neither overbought nor oversold. Meanwhile, the ownership structure continues to evolve: Siemens AG now holds just 5.54% of voting rights, according to a mandatory disclosure from April 2, 2026.

With a forward P/E above 86, the valuation leaves little room for error. Tuesday’s half-year report will show whether the record order momentum in grid technology and the cash generative power of the broader portfolio can fully offset Gamesa’s persistent drag – and whether the margin improvements in the power-generation divisions are materialising as promised. If the wind unit can finally prove it has turned the corner, the credibility of the upgraded annual targets will be secure.