Siemens Energy’s €1 Billion Buyback Fails to Halt a 17% Slide as Roadshow Aims to Reassure Investors

Siemens Energy's €1B buyback at €158.20 per share hasn't stopped a 17.72% slide; record order growth of 29.5% and raised guidance fail to support the stock.

Siemens Energy is funding its own stock at a price above where the market values it, yet the shares keep falling. The company’s €1 billion buyback programme through September 2026 has so far failed to arrest a 17.72% decline over the past 30 days, with the stock trading at €146.72 on Wednesday — a daily loss of 2.2%. The disconnect between management’s conviction and the market’s selling pressure is becoming harder to ignore.

In the first few days of June, the industrial group repurchased nearly 237,000 of its own shares for roughly €37.5 million, at an average price of €158.20. That is well above Wednesday’s closing level, meaning the company is paying a premium to what investors are currently willing to accept. The buying is part of a wider plan: up to €6 billion in total buybacks by the end of fiscal 2028, with the current tranche executed via Xetra and other European platforms under the direction of an independent institute.

Record Orders Meet a Cold Shoulder

The share’s weakness comes at an awkward moment for management, which is on the road this week. A roadshow in Copenhagen kicked off on Wednesday, followed by a stop in Stockholm on Thursday, with CFO Maria Ferraro also set to attend the J.P. Morgan European Industrials Conference in London on June 17. The presentation material is built around the second-quarter results for fiscal 2026, which were released on May 12 alongside an upgraded full-year outlook.

Those numbers were strong by any measure. Order intake surged 29.5% year-on-year to €17.7 billion, driven by Gas Services (€8.9 billion) and Grid Technologies (nearly €7.0 billion). Revenue climbed 8.9% to €10.3 billion, while the underlying result before special items reached €1.164 billion, corresponding to an 11.3% margin. On that basis, Siemens Energy now expects comparable revenue growth of 14% to 16% for the full year, a margin of 10% to 12%, net profit of roughly €4 billion, and free cash flow before tax of approximately €8 billion.

Yet none of that has prevented the stock from sliding. Despite the raised forecast, the share price has dropped more than 23% from its 52-week high of €195.54, touched on April 24. Over the past week alone, the decline stands at nearly 8%.

Technicals Tell a Tale of Exhausted Momentum

The relative strength index has fallen to 31.4, indicating that buying momentum is severely depleted — though the buyback has not triggered even a short-term stabilisation. The stock has slipped below its medium-term moving average of €168.51, while the long-term average of €136.11 still offers a floor. If the daily repurchase volumes do not increase markedly, that support level could come into play.

For the longer-term holder, the picture is less dire. The shares are still up 22% year-to-date and roughly 81% over the past 12 months. But the speed of the recent correction is raising eyebrows, particularly among the institutional investors in Copenhagen and Stockholm who are now being asked to accept the disconnect between record orders and a falling share price. The question management must answer: why is a company that just upgraded its guidance seeing its equity punished so sharply?