Siemens Energy Sets Sights on €8B Free Cash Flow as Order Backlog Swells to €154B

Siemens Energy unveils upgraded guidance: €8B free cash flow target, record €154B backlog, Grid Technologies growth, and €6B buyback program. Stock up 38% YTD.

Siemens Energy has laid out a bold financial target that shifts the narrative from mere revenue growth to cash generation. The industrial group now expects a free cash flow before taxes of roughly €8 billion for the current fiscal year, a figure that gives it ammunition to strengthen its balance sheet and return capital to shareholders. That ambition sits atop a record order backlog of €154 billion, providing the underlying revenue visibility needed to hit the mark.

The upgraded guidance was unveiled by CFO Maria Ferraro during the J.P. Morgan European Industrials Conference in London this week. Management now forecasts an after-tax profit of approximately €4 billion, up from a prior range of €3 billion to €4 billion. Comparable revenue growth is seen landing between 14% and 16%, with the margin before special items expected in a band of 10% to 12%. The brisk tempo of new business bolsters the case: second-quarter order intake jumped to €17.7 billion from €14.4 billion a year earlier, pushing the total backlog past the €154 billion watermark, compared with €133 billion at the same point in 2025.

The growth engine remains Grid Technologies, which is targeting revenue expansion of 25% to 27% this year and a margin before special items of 18% to 20%. Gas Services is also pulling its weight, with projected sales growth of 16% to 18% and a margin of 14% to 16%. Wind power continues to be the laggard. Siemens Gamesa is expected to grow only 3% to 5% in revenue this year and break even at the operating level — a modest improvement but hardly a growth driver.

Alongside the operational update, Siemens Energy is pressing ahead with its share buyback programme. The total envelope reaches €6 billion by the end of fiscal 2028. The current second tranche, worth up to €1 billion, is scheduled to wrap up by September 2026. In the week ending June 14 alone, the company repurchased more than 930,000 of its own shares on the open market, a signal that it sees value in its own equity even after a stellar run.

The stock, which has nearly doubled over the past twelve months, has taken a breather in recent sessions. On Thursday, it closed at €171.00, representing a 11.4% gain over the previous seven days. The shares are trading roughly 24% above their 200-day moving average. Another technical indicator, the relative strength index, sits at 56.3 — neutral territory that suggests neither overheating nor heavy selling pressure. Year to date, the stock has climbed 38.42%.

All eyes now turn to August 5, when Siemens Energy reports third-quarter results. The bar has been raised by the upgraded full-year guidance, and investors will scrutinise incoming orders, the Gamesa margin trajectory, and whether the operational momentum can sustain the elevated expectations. With a €154 billion backlog and €8 billion in targeted free cash flow, the company has given the market plenty to measure against.