Siemens Energy Ships Final NeuConnect Transformers as €6 Billion Buyback Test Looms

Final transformer arrives for NeuConnect link, record €17.6B orders, €6B buyback underway. Q2 results due Tuesday; stock near €188 peak with 135% yearly gain.

The last of 14 colossal transformers for the NeuConnect electricity link has arrived in Wilhelmshaven, marking a key milestone for Siemens Energy’s grid business. Each unit weighs 200 tonnes and will be installed at converter stations in Germany and Britain. Once completed in 2028, the 1.4-gigawatt subsea cable will supply the equivalent of roughly 1.5 million households, with much of the offshore cabling already in place.

The delivery underscores the structural demand reshaping Siemens Energy’s order book. Global power needs from data centres could climb to 950 terawatt-hours by 2030, according to the International Energy Agency. The company captured a record €17.6 billion in orders during the first quarter, driven by grid technology and gas turbines. For the full year, management still targets revenue growth of 14 to 16 percent and net profit around €4 billion.

Shares closed Monday at €177.96, sitting 5.34 percent below the year’s high of €188.00. The stock has surged 44.92 percent since January and 134.59 percent over the past twelve months. Technical indicators suggest the rally is cooling rather than overheated: the price stands 9.65 percent above the 50-day moving average, while the relative strength index reads 53.6, a neutral level.

The buyback programme remains a visible support. Between May 4 and 10, Siemens Energy repurchased 795,065 shares across Xetra, CBOE DXE, Aquis Exchange and Turquoise Europe at weighted average prices ranging from €179.01 to €185.67. Since the programme was announced on March 3, total purchases have reached 11,616,675 shares. The scheme is authorised for up to €6 billion through fiscal 2028 and, combined with dividends, is expected to return around €10 billion to shareholders within two years.

Tuesday’s second-quarter results will provide the next reality check. Analysts forecast earnings per share of €0.955 on revenue of €10.51 billion, implying a 5.45 percent increase from last year. The buyback strengthens the capital-returns narrative, but it cannot substitute for operating momentum. With the stock trading near its peak, the market is looking for concrete numbers to validate the premium.

If the report delivers on both growth and margins, the buyback adds another argument for holding the stock. A miss on earnings quality or weaker-than-expected guidance, however, would expose the valuation more quickly given the sharp run-up. The recent high around €188 remains the natural reference point for the next directional move.

The combination of project execution on NeuConnect, relentless buybacks, and a grid boom fuelled by AI-driven power demand gives Siemens Energy a strong tailwind. But at this altitude, the only thing that can keep the rally intact is proof that the operational engine is firing as brightly as the stock chart suggests.