Siemens Energy Secures Copper Supply Through 2032 and Rides German Gas Tender Momentum

Siemens Energy extends critical copper contract to 2032, leads US green hydrogen project, and benefits from Germany's gas-to-hydrogen plant plan. Analysts raise targets as shares double in a year.

The race to modernise the world's power grids is forcing industrial giants to lock in raw materials years ahead of demand. Siemens Energy has done exactly that by extending a critical copper components contract with Austria's ASTA Group until 2032, six years ahead of its original expiry date. The specialised copper parts are essential for high-voltage transformers and reactor coils used across all of the company's European transformer plants.

Dr Florian Bertram, head of procurement for transformers, described the strengthened partnership as a guarantee of long-term supply security. The move comes as global grid expansion accelerates, driven by the surge in data centre construction for artificial intelligence and the wider push for renewable energy integration.

Meanwhile, the company is also advancing its hydrogen ambitions in North America. Siemens Energy has been tapped by start-up Aternium to lead the front-end engineering and design for a 60-megawatt green hydrogen production plant on the US East Coast. The facility is expected to produce 24 tonnes of clean hydrogen per day, along with deuterium — a byproduct in high demand from the semiconductor and fibre-optic industries. The project will be executed in partnership with engineering services provider Kiewit Engineering.

Analysts Lift Targets as German Gas Plan Takes Shape

Investor sentiment has been further bolstered by Germany's latest energy policy push. The federal cabinet has approved a draft law for new gas power plants, with tenders totalling 12 gigawatts set to begin in 2026. Crucially, the plants must be convertible to hydrogen, a specification that plays directly to Siemens Energy's turbine technology.

The development has reinforced analyst confidence. Jefferies raised its price target on the stock to €215 on 18 May, maintaining a "Buy" rating. Other banks have followed suit: JPMorgan targets €225, Goldman Sachs €212, and both Deutsche Bank and Berenberg stand at €200. The consensus across analysts now sits at €186.30, with eight recommending a buy and three holding neutral.

The operating backdrop supports that optimism. Siemens Energy posted earnings per share of €0.89 in the second quarter of its fiscal 2026, up sharply from €0.50 a year earlier. Management is guiding for revenue growth of up to 16% and a margin of 12%, with a record order backlog of €154 billion underpinning the outlook.

Stock Consolidates After Stellar Run

At the market close on Thursday, shares traded at €172.68, down 0.83% on the day — a modest pullback after a year-long rally that has seen the stock more than double. On a 12-month basis, the gain stands at 124%, while year-to-date the advance is 40.62%.

Technical indicators remain firmly positive. The share price sits 4.93% above its 50-day moving average and 31.83% above the 200-day average, suggesting the recent dip is more a consolidation than a trend reversal. For the current fiscal year, analysts forecast earnings of €4.28 per share, compared with €1.63 for fiscal 2025. The dividend outlook has also improved: after a projected €0.70 for 2025, the payout is seen rising to €1.84 for 2026.

The next scheduled catalyst is the third-quarter results release on 5 August 2026. Until then, the combination of a secured supply chain, a supportive energy policy backdrop, and a hefty order book should keep investor attention firmly on Siemens Energy's long-term trajectory.