Siemens Energy Steps Up Capital Return and Data Center Showcase While Shares Drift Lower

Siemens Energy launches €1B buyback and targets data centers, but shares fall 5% in a week despite record €154B order backlog and Berenberg upgrade to €205 target.

Siemens Energy is firing on all operational fronts — launching a €1 billion accelerated share buyback, courting hyperscalers at the Datacloud Global Congress in Cannes, and sitting on a record order book — yet the stock can’t seem to catch a bid. The Munich-based group’s shares extended their recent pullback on Thursday, falling 1.24% to €157.86, after closing at €159.84 the previous session. The seven-day slide now exceeds 5%, leaving the stock well below its April all-time high even as the year-to-date gain remains a comfortable 29%.

The buyback, announced today, is being executed via an accelerated tranche that runs through September 2026. Up to €1 billion of Siemens Energy’s own shares will be purchased, primarily destined for employee compensation programmes. Any leftover shares will be cancelled, automatically lifting earnings per share for remaining holders. That tranche is just the start: management has set its sights on a total repurchase volume of up to €6 billion by the end of fiscal 2027/28.

While the buyback underscores confidence in the company’s cash generation, Siemens Energy is simultaneously leaning into the data centre theme that has supercharged its grid-technology franchise. At the Datacloud Global Congress in Cannes, the company is pitching scalable power systems and stable grid connections to an industry desperate for reliable energy to fuel the AI boom. The strategy is already paying off. In the second fiscal quarter, order intake surged to €17.7 billion, pushing the total order backlog to a staggering €154 billion. Gas turbine sales and grid equipment are leading the charge, with demand outstripping supply.

The grid segment alone is expected to grow revenue from a projected €14 billion this year to €20 billion by 2028, fuelled by network expansion and surging power demand from US data centres. On the broader order book, Siemens Energy has secured fixed orders totalling 87 gigawatts and is targeting the 100-GW milestone by year-end.

That operational momentum has prompted a fresh upgrade from Berenberg, which reiterated its buy rating and lifted the price target to €205 — implying roughly 30% upside from Thursday’s close. The bank’s optimism is rooted in the visibility provided by the fat order backlog and the structural growth of the grid business.

Yet near-term market sentiment remains cautious. The stock’s relative strength index (RSI) has slipped to 38.8, approaching oversold territory, and the distance to the 50-day moving average at approximately €168 underscores the short-term weakness. The second-quarter numbers, released last month, delivered revenue of €10.3 billion and adjusted EBIT of around €1.16 billion — solid execution that has already prompted management to raise its full-year guidance to double-digit revenue growth and an operating margin between 10% and 12%.

Investors will get the next hard facts on August 5, when Siemens Energy reports third-quarter results. The key question remains whether the company can convert its record order intake into profitable revenue and deliver the kind of execution that will lift the stock out of its current consolidation. Until then, the buyback and the Cannes roadshow are the two sides of Siemens Energy’s message: cash returning to shareholders while the company positions itself at the centre of the global energy transition.