Siemens Energy’s Order Book Stretches to 2030, Yet Shares Slip in Profit-Taking Session

Siemens Energy posts record orders and narrowed wind losses, but shares fall 4.77% on profit-taking. Gas turbine capacity sold through 2030, buyback boosted to €3B.

Siemens Energy delivered a batch of quarter-two numbers that would make most industrial stocks envious: a shrinking loss at its troubled wind unit, a record order intake, and production slots filled out to the end of the decade. Investors, however, chose to cash in on the stock’s 124% annual rally instead. The shares slid 4.77% to €169.54 on Friday, leaving them roughly 10% below the April high of €188.

The pullback comes despite an acceleration of the company’s share buyback programme. Management now plans to repurchase up to €3 billion of its own stock in fiscal 2026, up from the €2 billion originally earmarked. The total envelope remains at €6 billion. The faster pace is underpinned by a 42% jump in pre-tax free cash flow in the latest quarter, bolstered by surging demand from data-centre operators and utilities modernising their grids.

Over on the wind side, Siemens Gamesa — long a drag on group earnings — showed tangible recovery. Its operating loss narrowed to €44 million in the second quarter, compared with €249 million a year earlier. The margin improved from minus 9.2% to minus 1.7%. For the full year, Siemens Energy now expects Gamesa revenue growth of 3% to 5%, up from the previous 1% to 3% range, and an operating result that breaks even. The first half will still be loss-making, with an offshore revival pencilled in for the second half.

Gas services, the core earnings engine, continues to hum. The division booked 77 turbine orders representing 12 gigawatts of new capacity in the quarter, lifting order intake by 32% to €8.87 billion. In the first half alone, it sold 179 gas turbines — almost as many as in the whole of fiscal 2025. Capacity is effectively sold out through 2028, with 2029 filling quickly and early bookings for 2030 already on the books. The United States led the charge, where orders more than doubled year-on-year, fuelled by data-centre construction and grid reinforcements. European projects, notably in Poland, added further momentum.

“We are sold out in material parts of our business into 2030 and beyond,” Chief Financial Officer Maria Ferraro said. To meet that demand, the company plans to boost transformer and switchgear capacity by roughly 50% by 2030, with new medium-term targets to be unveiled alongside full-year results in November.

The group upgraded its full-year guidance again. Second-quarter revenue climbed 9%, while orders jumped 30% to an all-time high. The second half of fiscal 2026 is already 93% covered by existing contracts, and fiscal 2027 sits at just under 80% coverage. Alongside the buyback acceleration, shareholders are also in line for a dividend of €0.70 per share.

Market observers characterised Friday’s decline as a routine consolidation on elevated levels. The stock remains up nearly 40% since the start of the year, and the 124% annual gain has more than doubled the company’s market value in twelve months. The next major catalyst will come in August, when third-quarter numbers are due.