Siemens Energy Rides AI Power Hunger to Record Orders as Spin-Off Talk Intensifies

Siemens Energy secures record €17.7B orders, eyes ToI spin-off as AI infrastructure fuels gas turbine demand; shares up 38% YTD.

A single order for three gas turbines destined for a Texas data-center complex underscores just how deeply the artificial-intelligence boom is reshaping the energy landscape. Siemens Energy will supply the SGT6-5000F machines to Spanish contractor TSK for a facility in Amarillo being developed by Fermi America, a company that ultimately plans to build out more than 11 GW of capacity in the region. The deal positions Siemens Energy squarely at the intersection of two powerful trends: the insatiable electricity appetite of AI infrastructure and the global push to modernise power grids.

Those tailwinds have already translated into blowout numbers. In the second quarter of its 2026 financial year, the group booked a record €17.7 billion in new orders, pushing the total backlog to €154 billion. Revenue climbed 8.9% on a comparable basis to €10.3 billion, while earnings before special items surged to €1.164 billion. Management now expects full-year comparable revenue growth of 14% to 16% and net income of roughly €4 billion, with a free cash flow before taxes target of about €8 billion.

Beyond the operational momentum, investors are increasingly focused on a potential structural shake-up. Reports that Siemens Energy may spin off its “Transformation of Industry” (ToI) unit, which houses compressors and steam turbines, have gained traction. Analyst Lucas Ferhani of Jefferies argues that separating ToI, valued by some at around €12.4 billion, would leave a leaner group centred on gas turbines and grid technology, a business that could command a higher valuation multiple and offer stronger shareholder returns. Deutsche Bank’s Gael de-Bray, who reiterated a buy rating with a €200 price target, also sees the spin-off as a key catalyst. For its part, the company has yet to confirm any formal move.

The optimism among sell-side analysts is broadly shared. Jefferies lifted its price objective to €215, JPMorgan sees fair value at €225, and Goldman Sachs pins its target at €212. All maintain buy recommendations. Meanwhile, a share buyback programme of up to €3 billion is running until the end of the fiscal year, adding another layer of support.

Shares closed last week at €168.88, a weekly gain of 9.4% that pushed the year-to-date advance to nearly 38%. That leaves the stock hovering just above its 50-day moving average of €169.31 – a level technicians consider a critical threshold. A clean break above that mark would open the path towards the 52-week high of €195.54. The current price of €171.28 represents a roughly 39% gain since the start of the year.

The next concrete update comes on 29 June, when Siemens Energy holds a pre-close call to offer a glimpse of its recent trading. With the Texas order now in the bag, a record order book, and portfolio simplification inching closer to reality, the company has plenty of raw material to keep the story moving.