Siemens Energy Scores Landmark Oman Order and Advances €12.4 Billion Carve-Out, Yet Shareholders Take Profits

Siemens Energy lands a multi-billion-euro gas turbine contract in Oman, boosting capacity by 20%, while stock slips 2%. Hydrogen-capable tech and AI demand fuel long-term growth outlook.

The German industrial group is firing on all cylinders operationally — and the market is barely blinking. Siemens Energy has sealed a multi-billion-euro contract to supply six F-class gas turbines and six generators for two power plants in Oman, projects that will add roughly 2.6 gigawatts to the sultanate's grid, or a nearly 20% capacity increase serving more than two million people. The 20-year service agreements that come with the deal underscore the long-term revenue visibility that analysts have been touting.

Yet the stock slipped 2.07% on Wednesday to €163.40, pulling back from the prior session's 5.5% surge triggered by upbeat signals from the gas and grid divisions. The dip brings the shares 16.44% below the 52-week high of €195.54 hit in late April. That intraday volatility — around 60% over the past year — reflects a market still pricing Siemens Energy as a high-growth story with execution risk rather than a steady dividend payer.

The Oman turbines are hydrogen-capable, allowing the fuel mix to shift progressively toward greener sources — a feature that aligns with global decarbonisation goals and makes the contract politically palatable. Both turbines and generators will be manufactured at Siemens Energy's German plants in Berlin and Mülheim, with the company also pouring over $1 billion into expanding its US production capacity for gas turbines and grid technology. The order backlog in gas turbines is already filled for years, a testament to demand outstripping supply.

That demand is being supercharged by the AI boom. Goldman Sachs estimates that roughly 75% of hyperscaler infrastructure spending goes to non-chip categories such as construction, cooling and power supply, and projects global AI infrastructure investment will reach between $527 billion and $765 billion in 2026. Siemens Energy is a direct beneficiary of the need for baseload power when renewables fluctuate, and market watchers expect global gas capacity to expand by more than 85 GW between 2026 and 2030.

On the corporate front, the company is exploring a spin-off or IPO of its "Transformation of Industry" division, which makes compressors and steam turbines and has built a hefty order book thanks to data-centre demand. The unit is being valued at roughly €12.4 billion, and a first tranche could see Siemens Energy sell about 60% of the shares. The move adds a layer of value-unlock fantasy on top of solid operational momentum: the company has guided for 14–16% comparable revenue growth in fiscal 2026, an adjusted margin of 10–12%, and net profit of around €4 billion. Since early June, Siemens Energy has also been buying back its own shares, snapping up over 1.5 million shares by mid-June.

Analyst sentiment remains overwhelmingly bullish. Nineteen of 25 analysts rate the stock a buy, and the consensus price target stands at €195.08, with the most optimistic forecast at €250. Berenberg's Richard Dawson recently raised his target to €205. The neutral RSI reading of 50.7 and a share price well above the 200-day moving average of €140.89 suggest technicals are not flashing warning signs. The next major catalyst arrives on 5 August with third-quarter results, which will reveal whether the Oman mega-deal and broader order momentum are translating into hard revenue — and whether the spin-off plans start to take concrete shape.