Siemens Energy Ramps Up Gas Turbine Output and Lands €2.5 Billion Converter Option as Q3 Orders Surge

Siemens Energy Q3 order intake €17.7B beats market by 4%; shares gain 4-5% on gas turbine and grid tech demand surge. Company expands capacity, analysts unanimously bullish.

Siemens Energy has given investors an early glimpse of its third-quarter performance, and the numbers are turning heads. During a pre-close briefing on June 29, the company flagged an order intake of around €17.7 billion — roughly 4% above market expectations — and outlined bold expansion plans that sent shares climbing. The stock gained between 4% and 5% on Tuesday, settling at €166.82, after the management sent a clear message: demand for gas turbines and grid technology shows no sign of letting up.

The bullish sentiment is underpinned by two concrete multi-billion-euro contracts. Together with partner NSORe, Siemens Energy secured the order for the “North Sea Connector 2”, an offshore converter for a German grid connection. The manufacturing will take place in Rostock, safeguarding more than 500 jobs there. Crucially, the contract includes an option for a second converter with a volume of roughly €2.5 billion. Separately, the company won a deal from Oman to supply six F-class gas turbines and six generators for two combined-cycle power plants in Misfah and Duqm, with a total capacity of 2.6 gigawatts. The agreement also covers service contracts spanning 20 years.

Management took the opportunity to update the market on its long-term view of the gas turbine market. Siemens Energy now expects sustainable annual demand of 110 to 120 gigawatts in the coming years, driven not only by the boom in AI data centers but also by broad-based demand across regions and customer types. To meet that thirst, the company is accelerating capacity expansion. The first phase for medium-sized gas turbines will kick off in the second half of the year, and by fiscal 2027, large gas turbine capacity is set to reach roughly 50 units per year — up from the current 35.

The grid technology division is also on an upward trajectory. Siemens Energy had already raised its fiscal 2026 revenue growth guidance for Grid Technologies to 25–27% from 19–21%, with the margin target (before special items) lifted to 18–20% from 16–18%. The company is adding capacity in Austria, Italy, China and Saudi Arabia, and plans further expansions in large transformers and switchgear through 2030. For the current quarter, however, the division is unlikely to book any mega-projects; management expects quarterly orders of between €5 billion and €5.5 billion.

Analyst reaction was uniformly positive. All twelve research notes published in June rated the stock a buy. Citigroup saw gas turbine orders potentially reaching around €9 billion in Q3, in line with previous quarters, while Bank of America forecast group order intake of €17.6 billion, led by Gas Services. Jefferies reiterated its buy recommendation with a €215 price target, and Bernstein Research set a target of €210, with Deutsche Bank at €200. Jefferies analyst Lucas Ferhani highlighted growing confidence in the U.S. grid build-out, while Nikolas Demeter of Bankhaus Metzler predicted upside surprises in steam turbines and power transmission.

The stock has nearly doubled over the past twelve months and is up roughly 36% year-to-date. It currently trades around 15% below its 52-week high of €195.54. For the full fiscal year, Siemens Energy management is guiding for revenue growth of 14–16% and net income of approximately €4 billion. The market will get the full picture when the official third-quarter results are published on August 5 at 7:00 AM CEST, when investors will see whether the pre-close signals translate into actual numbers.