Siemens Energy's Twin Boost: Abu Dhabi Mega-Order and Accelerated Buyback Signal Confidence

Siemens Energy wins 2.6GW gas turbine contract for Abu Dhabi's Taweelah C plant and ramps up €1B share buyback, backed by record orders and strong cash flow.

Siemens Energy is firing on two cylinders this month. The German industrial group has locked in a major turbine contract for a 2.6?gigawatt gas?fired power plant in Abu Dhabi, while simultaneously stepping up the pace of its €1 billion share buyback programme. Together, the moves underline management’s confidence in a business that is riding a wave of record orders and improving profitability.

The Abu Dhabi project, known as Taweelah C, will be a combined?cycle facility developed by Abu Dhabi National Energy Company (TAQA), which holds a 60% stake, alongside Saudi Arabia’s Al Jomaih Energy and Water Company and Singapore’s Sembcorp Industries, which together control the remaining 40%. China Energy Engineering Group has been appointed to handle engineering, procurement and construction, while Emirates Water and Electricity Company has committed to purchasing all of the plant’s output under a power purchase agreement running until 2050. Commercial operations are targeted for 2029.

Siemens Energy’s role centres on its advanced HL?Class technology. The package includes SGT5?9000HL gas turbines manufactured in Berlin and Mülheim, SST5?5000 steam turbines also from Mülheim, and generators from Charlotte, North Carolina. The plant is designed to accommodate future carbon?capture retrofits, a nod to the growing emphasis on decarbonisation in the Gulf region. The company did not disclose the contract value, but the order reinforces its standing as a go?to supplier for flexible gas power in the Middle East.

Meanwhile, the share buyback—announced in early June and running until September 2026—has picked up notable momentum. Between 8 and 14 June, Siemens Energy purchased 696,530 of its own shares, lifting the total since the programme’s launch on 4 June to 933,570. The heaviest buying occurred on 10 and 11 June, when roughly 155,000 shares were acquired each day at prices of €145 and €144 respectively. On the other three trading days, daily volumes ranged from 127,000 to 131,000 shares at prices between €151 and €158. Trades were executed on Xetra as well as the CBOE DXE, Aquis Exchange Europe and Turquoise Europe venues. The programme has a maximum volume of €1 billion and a cap of 57 million shares, with the repurchased equity earmarked for employee compensation plans or cancellation.

The buyback is being funded from a balance sheet that is increasingly cash?rich. In the second fiscal quarter, Siemens Energy reported order intake of €17.7 billion and a book?to?bill ratio of 1.72, while the order backlog swelled to €154 billion. For the full 2026 fiscal year, the company guided for revenue growth of 14% to 16%, an adjusted operating margin of 10% to 12%, and free cash flow before taxes of roughly €8 billion. Those numbers give plenty of headroom for the repurchase scheme.

Investors have taken note. UBS reiterated its buy rating on Tuesday with a price target of €175, providing an additional tailwind as the stock edged higher. Siemens Energy shares were trading at €156.30 on the day, a gain of around 1.5%, and have climbed roughly 27% since the start of the year. That still leaves the stock about 20% below its 2026 high of €195.54, and the 50?day moving average of €168.88 remains about 8% above the current price. Near?term catalysts include presentations at the J.P. Morgan European Industrials Conference on 17 June and the ODDO BHF London Forum the following day, while investors will watch for the Q3 pre?close call on 29 June and the full quarterly release on 5 August.

The Taweelah C order does not immediately alter the earnings outlook but sends a clear strategic signal: demand for efficient gas turbines remains robust even as renewables expand, particularly in regions where grid stability and backup capacity are priorities. Combined with the share repurchase—a vote of confidence in the company’s own valuation—Siemens Energy is making a persuasive case that both its order book and its shares are worth holding.