Siemens Energy's €8bn Cash Windfall and Record €154bn Backlog Can't Stop the Profit-Takers

Siemens Energy posts exceptional Q1 results with record €154B backlog, raises guidance, and accelerates buybacks. Yet stock ends week down 5% in classic 'sell the news' reaction.

Analysts are stampeding to lift their price targets, the order book has swelled to a record, and management is sitting on a cash pile large enough to buy back billions in shares. Yet Siemens Energy's stock still ended the week nearly 5% lower. The gap between operational strength and market sentiment has rarely been wider.

On Friday, the shares closed at €169.18 after sliding almost five percent — a classic "sell the news" reaction to a quarter that, by any measure, was exceptional. The company posted earnings per share of €0.89 as revenue climbed to €10.3 billion, comfortably ahead of expectations. Operating profit hit €1.16 billion, while order intake surged nearly 30% year-on-year to €17.7 billion, well above the analyst consensus.

That intake helped push the total order backlog to an unprecedented €154 billion, a figure that underscores the structural demand Siemens Energy is tapping. CEO Christian Bruch used the momentum to raise full-year guidance: comparable revenue growth is now seen at 14% to 16%, net profit should come in around €4 billion, and free cash flow before taxes is projected at roughly €8 billion.

Buyback acceleration signals confidence

The improved cash outlook has allowed management to accelerate the share buyback programme. A total of €3 billion will flow into repurchases by the end of 2026, with nearly 800,000 shares already bought back in early May alone. The programme is funded largely by hefty customer advance payments — a sign of the strong demand that has filled Siemens Energy's coffers.

One of the key drivers behind that demand is artificial intelligence. Every fourth gas turbine the company now sells powers data centres, linking the AI boom directly to Siemens Energy's bottom line. The company is also investing $1 billion in its US manufacturing footprint, building a massive high-voltage switchgear plant in Mississippi and expanding transformer production in North Carolina.

Wind unit shows signs of healing

The troubled wind turbine subsidiary Siemens Gamesa, long a drag on group earnings, also delivered some relief. Its operating loss narrowed to €44 million in the quarter, offering hope that the restructuring is gaining traction. The turnaround of Gamesa and the booming grid technology business are expected to take centre stage when management updates its medium-term targets through 2030 in November.

Despite the weekly drop, the stock remains technically intact, trading above its 50-day moving average. The year-to-date gain still stands at roughly 38%, and the April peak of €188 shows how far the shares had run before profit-taking kicked in.

Analysts remain bullish. Bernstein raised its price target to €210, Goldman Sachs sees €212, while Deutsche Bank and Berenberg both set €200. The consensus from 25 analysts lands at around €187 — more than 10% above the current price. For investors looking for the next catalyst, the company is presenting at roadshows in Frankfurt and Paris on May 18 and 19.