Siemens Energy Raises Profit Forecast to €4 Billion and Wraps Up €2 Billion Buyback as Order Backlog Hits €154 Billion

Siemens Energy posts €17.7B quarterly orders, lifts full-year profit target to €4B, and completes €2B share buyback; stock up 41.5% YTD despite Friday dip.

A surge in demand for grid technologies and gas turbines has propelled Siemens Energy to a record order intake, prompting management to lift its full-year profit outlook for the second time and complete a €2 billion share buyback in the process. The Munich-based energy technology group booked €17.7 billion in new orders in the second quarter alone, sending the order backlog to an all-time high of €154 billion. Gas Services alone accounted for 102 gas turbines, while Grid Technologies benefited from large data-centre contracts in the United States.

The buyback, executed between March and mid-May, saw the company repurchase roughly 12.6 million of its own shares, equivalent to about 1.5% of the share capital, for a total consideration of approximately €2 billion. The move is designed to reduce dilution and bolster earnings per share, underscoring the sharp improvement in Siemens Energy’s liquidity. The programme remains ongoing, with more than 12 million shares already bought back since March 2026.

Buoyed by the operating momentum, Siemens Energy now expects net profit for the full year to reach about €4 billion, up markedly from previous guidance. Revenue growth is forecast to land at 14% to 16%, raised from an earlier range of 10% to 12%. In the first half, the group reported net profit of €1.443 billion on sales of nearly €20 billion, with earnings per share from continuing operations more than doubling year-on-year. Free cash flow is projected to hit around €8 billion for the full year.

Deutsche Bank Research analyst Gael de-Bray reiterated his buy recommendation on the stock with a price target of €200, pointing to the structural tailwinds from grid modernisation and the visible progress in restructuring the loss-making wind power division. He also sees room for margin expansion, particularly in the networks business. The group now ranks as the third-largest constituent in the DAX by free-float market capitalisation.

Despite the strong fundamental picture, the stock gave back some ground on Friday, closing at €174.06 — a modest decline of 0.82% on the day. Still, that leaves the shares up 41.5% since the start of the year and more than double their 52-week low of €81.78. One lingering risk: large energy companies could scale back their involvement in German offshore wind projects, a factor that has kept the turbines business in a tentative recovery rather than a full-blown growth engine.

Investors will get the next update on 5 August 2026, when Siemens Energy reports third-quarter results. The market will be watching closely to see whether the record backlog of €154 billion can be converted into sustainably higher margins, especially as the ambitious revenue guidance leaves little room for disappointment.