Siemens Energy Lands 2.4 GW Taiwan Contract as Goldman Endorsement Adds to Bullish Tailwinds

Siemens Energy secures 2.4GW Taiwan gas turbine order, boosting earnings visibility amid AI-driven power demand. Goldman Sachs adds stock to conviction list.

Taiwan’s Mai-Liao Power Corporation has handed Siemens Energy a contract for a 2,400-megawatt gas-fired power plant, providing a concrete earnings anchor just as the German industrial group embarks on a European roadshow to court institutional investors. The order covers four HL-class gas turbines, steam turbines, generators and auxiliary systems, with long-term service agreements that promise recurring revenues well beyond the planned commissioning date in late 2029. Once operational, the facility will replace coal capacity and supply roughly 5% of Taiwan’s total electricity generation.

The news landed within days of Goldman Sachs adding Siemens Energy to its exclusive “European Conviction List – Directors’ Cut.” Analyst Ajay Patel argues that the company is a structural winner from the surge in power demand driven by AI data centres and the modernisation of global electricity grids. Patel’s operating profit forecast for 2030 runs around 10% above the current market consensus, and he sees room for further upward revisions to medium-term targets when the company reports its full-year results in September.

That optimism is supported by unusually high revenue visibility. For the second half of the current fiscal year, 93% of expected orders are already covered, and the figure stands at roughly 80% for the following year. Grid Technologies, the standout division, is targeting sales growth of 25–27% in the current fiscal year with a margin of 18–20%. Group-wide, Siemens Energy aims for comparable revenue growth of 14–16% in fiscal 2026 and an adjusted operating margin of 10–12%.

Shareholder returns are also ramping up. A buyback programme originally set at €2 billion has been topped up with an extra €1 billion, bringing the total to €3 billion for the current year. Combined with a €0.6 billion dividend, that means €3.6 billion is flowing back to equity holders. New payout plans are expected to be unveiled alongside the September annual results.

Management kicked off its investor tour this evening at the Berenberg Innovation Seminar in Zurich, with additional stops in Munich, Copenhagen and Stockholm. The roadshow is designed to reinforce the upgraded guidance issued in May, highlighting the turnaround at wind subsidiary Siemens Gamesa and the accelerating Grid Technologies business. For the stock, the question is whether the combination of a marquee order, a Goldman vote of confidence and face-to-face engagement can break the recent consolidation.

The share price closed yesterday at €160.90, just above the 100-day moving average of €159 but roughly 14% below the April high of €188. Technically, the stock has lost about 11% in seven days and sits well below its 50-day moving average of €167.56. A clear bullish signal would require a move back above the 20-day average at €175.30, representing a near-8% gain from current levels. JPMorgan retains an “Overweight” rating with a €225 target, while the consensus analyst price stands at €186.30. The next major fundamental catalyst is the third-quarter report due on 5 August 2026.