Siemens Energy Stock Takes a Beating Even as Record Orders and a Buyback Try to Prop It Up

Siemens Energy shares drop 13.6% in a week, trading near key support. Strong order backlog and buyback fail to stem selloff amid Gamesa concerns and technical weakness.

Investors are punishing Siemens Energy with a ferocity that seems at odds with the company’s own numbers. The shares have lost 13.6% over the past week alone, closing at €137.90 on the latest session — a far cry from the April all-time high that now sits nearly 29% above current levels. The selloff accelerated Thursday, with the stock sliding 7.2% to €139.16, leaving the market to wonder when the pain will end.

Management is trying to fight back. A roadshow is underway in Scandinavia, where executives are pitching the group’s strongest-ever order book to skittish investors. The argument is compelling: Siemens Energy booked a record €17.7 billion in new orders in the spring, swelling its total backlog to €154 billion. Grid Technologies is riding a global wave of grid expansion, and even the troubled wind turbine unit, Siemens Gamesa, is showing signs of life — its operating loss narrowed to €44 million last quarter from €249 million a year earlier.

Yet the bearish momentum has been relentless. Technically, the stock is now sitting on a knife edge. The 200-day moving average, a widely watched long-term support, currently sits at €136.07 — just 1.35% below Wednesday’s close. The relative strength index has plunged into deep oversold territory, with readings of 26.9 to 27.4, suggesting the selling is stretched. But the stock is trading a full 17% below its 50-day average, a sign of how abruptly sentiment has turned.

The company’s own share buyback program, far from calming nerves, has so far failed to stem the tide. The second tranche of a multi-billion euro repurchase plan began in early June. In the first week alone, Siemens Energy bought 237,040 of its own shares at an average price of roughly €158 — well above the current market. The buyback budget for the full fiscal year has been raised to up to €3 billion, and free cash flow before taxes jumped 42% to nearly €2 billion in the same period. Together with the dividend, shareholder returns are surging. But none of that has stopped the rout.

One overhang is impossible to ignore: Siemens Gamesa. Activist hedge fund Ananym Capital has been pushing for a spin-off of the money-losing wind turbine division, arguing it is dragging down the profitable gas and grid businesses. CEO Christian Bruch has flatly rejected that idea, insisting instead on an operational turnaround. So far the numbers back him up—losses are shrinking—but Bruch has also made Gamesa’s breakeven a hard condition for the full-year guidance. A misstep there would trigger a profit warning, and that single point of failure is keeping traders on edge.

What comes next is a series of critical catalysts. Next week, Siemens Energy will present at the J.P. Morgan conference in London. On June 29, management holds a pre-close call ahead of the quarterly results. Then, on August 5, the third-quarter numbers land — the next hard data point that could either validate the turnaround or deepen the selloff. Until then, the buyback is the only active signal from management, and the 200-day moving average is the last line of defense. If that level holds, the current correction may prove to be a buying opportunity. If it breaks, the dislocation between a record order book and a sinking stock price could get even wider.