Siemens Energy’s Turnaround Takes Shape as Wind Unit Narrows Loss and AI Demand Fuels Record Orders

Siemens Energy shares rally 42% in 2025 as wind unit Gamesa slashes losses to €46M, grid backlog hits €146B, and AI data center demand drives record orders.

Siemens Energy has emerged as one of the standout performers on the German market this year, with shares surging more than 42% since January. The rally, however, is not just a story of momentum — it is underpinned by a dramatic operational shift at the company’s long-troubled wind turbine subsidiary, Siemens Gamesa.

In the first quarter of fiscal 2026, Gamesa posted a loss of €46 million, a staggering improvement from the €1.3 billion it bled in the same period a year earlier. While the unit remains in the red, the trajectory is clear: the haemorrhaging has stopped, and profitability is within sight. The Bank of America has taken note, lifting its price target on Siemens Energy to €250, a level that implies considerable upside from the current share price of around €175.

The broader business is firing on all cylinders. Siemens Energy’s order backlog has swelled to a record €146 billion, with delivery slots for large gas turbines already booked out to 2030. The surge is being driven by two powerful tailwinds: the global overhaul of electricity grids and the insatiable energy demands of artificial intelligence infrastructure. Data centres require ultra-reliable power supplies, and Siemens Energy’s transformers and turbines are in high demand as a result.

The company’s management has responded by raising its full-year guidance. Siemens Energy now expects revenue growth of up to 16%, with an improved operating margin and a projected net profit of around €4 billion. The half-year report, due on 12 May, will be the next major test. Investors will be watching closely to see whether the preliminary figures hold, particularly around margins in the Grid Technologies division.

At the bourse, the stock closed at €174.92 on Wednesday, comfortably above its 50-day moving average. The shares hit an all-time high of €188 in late April before profit-taking set in. Bank of America views this consolidation as a buying opportunity, arguing that earnings still have room to expand relative to peers.

Analyst sentiment is broadly constructive. Berenberg rates the stock a buy with a €195 target, while Goldman Sachs sees fair value at €185. Jefferies is more cautious, setting a target of €164. The divergence reflects the uncertainty that still surrounds Gamesa’s recovery, but the trend is unmistakably positive.

Siemens Energy is also expanding its international footprint. New partnerships in Angola are strengthening its gas and energy solutions business, adding another layer of growth to an already crowded narrative. With the wind division stabilising, the grid business booming, and AI-driven demand showing no signs of abating, the company is positioning itself as a heavyweight not just in the DAX, but in the global energy transition.