Siemens Energy's €1bn Buyback and Goldman Sachs Endorsement Struggle to Offset 14% Monthly Drop

Siemens Energy launches €1bn buyback and earns Goldman Sachs' 'European Conviction List' spot, but profit-taking pushes shares 14% below 30-day highs despite record orders and AI-driven data center demand.

Siemens Energy is fighting a two-front battle. The Munich-based energy-technology group has launched a €1bn share buyback and secured a blue-chip endorsement from Goldman Sachs, yet its stock continues to slip as profit-taking erodes the gains of a blistering spring rally. Shares closed at €157.46 on Friday, down 1.17% on the day and 14.21% lower than 30 days ago — a slide that has taken the price nearly 19% below the 52-week high of €195.54.

The buyback, disclosed via a capital-market notice on Wednesday, represents the second tranche of a larger programme. Siemens Energy will repurchase its own shares worth up to €1bn between 4 June and no later than 30 September, with a cap of 57 million shares. The shares are earmarked exclusively for employee compensation and cancellation. An independent institute executes the purchases across Xetra and the multilateral trading venues CBOE DXE, Aquis Exchange Europe and Turquoise Europe, with price limits of minus 20% and plus 10% relative to the Xetra opening auction. Daily purchases on any single venue are capped at 25% of the average daily turnover. The tranche is part of a broader commitment: up to €6bn in buybacks by the end of fiscal 2028.

The buyback rests on a sturdy operational base. In mid-May Siemens Energy reported a second-quarter order intake of €17.7bn, swelling the order backlog to a record €154bn. Revenue reached €10.3bn, net profit came in at €835m and free cash flow before taxes hit close to €2bn. Management responded by lifting full-year guidance: comparable revenue growth of 14–16%, a margin before special items of 10–12%, net profit of roughly €4bn and free cash flow before taxes of around €8bn.

Investors, however, are also looking at the data-center explosion as a critical growth engine. The group presented itself this week at the Datacloud Global Congress in Cannes as a strategic partner for hyperscalers such as AWS, Microsoft and Google, who are scrambling to satisfy the surging power demands of AI workloads. Already, one-quarter of all orders in the Gas Services division come from data-center projects; in the second quarter alone Siemens Energy secured 5 gigawatts of capacity orders. The twin challenges of grid stability and supply security have turned the company into a silent beneficiary of the AI frenzy.

Goldman Sachs has taken note. The Wall Street bank added Siemens Energy to its "European Conviction List," calling the company a "structural winner" from both the energy transition and the AI boom. Particular attention is paid to the Grid Technologies unit, where the integration of battery storage from Fluence and transformers positions the firm to stabilise intermittent renewable output for server farms. Goldman Sachs expects operating profit in 2030 to come in roughly 10% above the current market consensus.

Despite these tailwinds, the technical picture remains fragile. The stock trades 16% above its 200-day moving average but about 7% below the 50-day average — a classic sign that the near-term downtrend is intact. The relative strength index sits at 39.7, indicating cooling but not yet a washout. Market watchers point to profit-taking after a spring rally that still leaves the shares up 28% year-to-date and 79% higher over 12 months.

The management is now taking the show on the road. A roadshow through European financial centres kicked off this week, with the central question being how to translate the €154bn order backlog into rising margins. The wind-turbine subsidiary Siemens Gamesa remains a turnaround challenge, but the booming grid business and demand for gas turbines are driving profitability. The next quarterly results are due on 5 August 2026, and until then the stock is likely to remain in a waiting pattern — caught between a powerful fundamental story and the gravitational pull of recent losses.