Siemens Energy Lifts Guidance as Record €17.7 Billion Order Backlog Fuels €4 Billion Net Profit Ambition

Siemens Energy raises guidance again as grid unit profits soar from AI data center buildout, orders reach €154 billion record, shares up 41% in 2026.

The race to build out power grids for AI data centers has turned Siemens Energy into one of the best-performing stocks in the sector, and fresh numbers show the momentum is far from fading. The Munich-based group now expects net income to hit around €4 billion in its fiscal 2026, after jacking up its full-year guidance for the second time this year.

Order intake surged to an all-time high of €17.7 billion in the second quarter, lifting the total order book to a record €154 billion. The main driver was Grid Technologies, which posted an adjusted margin above 17% in the period — the highest of any division. That unit has become the company’s profit engine as US hyperscale data center operators ramp up electricity consumption, forcing utilities to upgrade transmission networks. Gas Services also contributed heavily, booking 102 gas turbines in the half-year.

Management now expects comparable revenue growth of 14% to 16%, up from an earlier forecast of 10% to 12%, and an adjusted operating margin of 10% to 12%. Free cash flow before taxes is seen reaching approximately €8 billion for the full year. To work through the swelling order book, Siemens Energy is pouring more than €2 billion into global production capacity, aiming to shorten delivery times on large-scale projects.

The strong momentum is already showing up in the numbers. First-half net profit reached €1.443 billion on revenue of nearly €20 billion, with earnings per share from continuing operations more than doubling year-on-year. The solid cash generation has also allowed the company to accelerate share buybacks — it has repurchased over 12 million shares since March 2026, and the board plans to increase the programme by up to €1 billion during the current year.

Shares closed Friday at €173.72, down 0.88% on the day but up roughly 41% since the start of 2026. The stock sits about 8% below its 52-week high of €188.00 set in late April, and has more than doubled from its 12-month trough of €81.78. Analysts remain broadly bullish: the consensus price target stands at €186.30, while Deutsche Bank has a “Buy” rating and a €200 target, pointing to further margin upside in the grid business. Bernstein and RBC have also reaffirmed their buy recommendations recently.

One headwind persists: large energy groups may pull back from German offshore wind projects, and while the wind division has improved modestly, it is not yet a growth contributor. Investors will get a clearer picture on August 5, when Siemens Energy reports third-quarter results and shows whether the €154 billion backlog continues to convert into strong margins.