Siemens Energy’s Dual Play: Securing Abu Dhabi’s Power While Reshaping Its Future

Siemens Energy considers IPO for up to 60% of industrial unit, wins turbine contract for Abu Dhabi's 2.6 GW plant. Stock up 38% YTD, analysts target €200.

Siemens Energy is running on two tracks — landing a marquee turbine contract in the Middle East while simultaneously weighing a radical overhaul of its business lines. The Munich-based group confirmed it is reviewing a possible separation of its industrial division, a move that could unlock significant shareholder value.

The unit in the spotlight, “Transformation of Industry,” builds steam turbines, compressors, and electrolysers. In the 2025 financial year it generated a profit of €646 million on sales of roughly €5.7 billion. Under current thinking, as much as 60 percent of the division’s equity could be offered via an initial public offering, though management stressed that no final decision has been made yet. The logic behind the carve-out is clear: shedding the oil-and-gas legacy assets would allow Siemens Energy to focus more narrowly on electrification and make it easier to compare with US rival GE Vernova, which commands a far higher valuation on Wall Street.

On the operations front, the group continues to fire on all cylinders. It has secured the turbine technology contract for the “Taweelah C” combined-cycle power plant in Abu Dhabi. The facility is designed to reach a capacity of 2.6 gigawatts. The order covers three gas turbines, two steam turbines, and five generators, with manufacturing spread across sites in Berlin, Mülheim, and Charlotte. The equipment is already being prepared for future carbon capture integration — a nod to the industry’s growing decarbonisation requirements.

The stock market has rewarded the twin narratives of growth and restructuring. Siemens Energy shares closed Friday at €168.88, edging down slightly on the day but racking up a weekly gain of roughly 10 percent. Since the start of the year the stock has added about 38 percent. That performance is still supported by a strong technical picture: the share price sits more than 22 percent above its 200-day moving average, and buyers now have their sights set on the 52-week high of €195.54.

Deutsche Bank Research reiterated its buy rating last Friday with a price target of €200, highlighting the ongoing portfolio reshaping and earnings improvement as key catalysts. The next milestone for investors is the quarterly report due on 5 August, which should shed light on how far profitability at the troubled wind-turbine subsidiary Gamesa has progressed. Meanwhile, the planned acquisition of Northern Ireland’s Camlin Group, which brings expertise in digitalising power grids, is still awaiting antitrust clearance — another piece in the puzzle that could sharpen the company’s strategic focus.