Siemens Energy Tightens Its Focus: Portfolio Overhaul Gains Momentum Alongside a 1 GW Texas Order

Siemens Energy plans to sell compressor/steam turbine business, securing large gas turbine orders for AI data centers, boosting guidance and stock price.

Siemens Energy is sending a clear signal to the market: it wants to look more like GE Vernova — and it’s willing to shed legacy assets to get there. Reports that the Munich-based group is exploring a sale of its compressor and steam turbine business have injected fresh energy into the stock, with investors betting that a leaner, grid-focused company would command a higher valuation. The move comes as the group simultaneously locks in large-scale gas turbine orders for the booming AI data-center market, most notably a three-turbine deal for a roughly 1 GW power plant in Amarillo, Texas.

Spanish engineering firm TSK confirmed last Thursday that Siemens Energy will supply three SGT6-5000F gas turbines for the project, with delivery scheduled for 2026. TSK is handling design, engineering and project management for the facility, which forms part of a much larger energy complex being developed by Fermi America. That wider complex is targeting more than 11 GW of total capacity — all aimed at powering AI data centers. The order builds on a memorandum of understanding announced in September 2025, which covered 1.1 GW of Frame F-Class technology in combined-cycle configuration. Though Siemens Energy itself has not issued a separate press release, TSK’s statement signals the project is moving into execution.

The Texas win dovetails with an already bulging order book. In the fiscal second quarter, Siemens Energy reported orders of €17.7 billion and a total backlog of €154 billion. Management subsequently raised its 2026 guidance, now expecting comparable revenue growth of 14% to 16%, an adjusted EBITA margin of 10% to 12%, net income of around €4 billion and a pre-tax free cash flow of roughly €8 billion. Grid Technologies is cited as the primary growth engine, but flexible gas generation for AI infrastructure is clearly part of the narrative.

The portfolio restructuring is gaining traction on a separate front. Siemens Energy is pursuing the planned acquisition of Northern Ireland’s Camlin Group to strengthen its digital grid capabilities, subject to antitrust approval. Deutsche Bank Research reiterated its buy recommendation last Friday with a €200 price target, pointing to the ongoing transformation and margin improvement as key catalysts. The next test for the company will be its third-quarter results on August 5, which should reveal how far the profitability turnaround at wind turbine subsidiary Gamesa has progressed. A quiet period begins on July 1.

At the close last Friday, Siemens Energy shares stood at €168.88, capping a weekly gain of just over 10%. That level sits just below the 50-day moving average of €169.31, a technical threshold that could influence short-term sentiment. Year to date, the stock has already rallied more than 37%. A series of macro data points in the coming days — including German and eurozone flash PMIs on June 23, the Ifo business climate index on June 24, and U.S. PCE inflation along with durable goods orders on June 25 — could provide the broader backdrop.

The restructuring logic is straightforward: by exiting the oil-and-gas-linked compressor and steam turbine business, Siemens Energy would become a purer play on electrification and grid technology, directly comparable to GE Vernova, which trades at a significantly higher multiple. The Camlin acquisition would add network digitalization know-how, while the Texas project demonstrates the group’s ability to serve the surging demand from hyperscale data centers. Whether the stock can break decisively above its 50-day average in the coming sessions may determine the near-term technical picture, but the strategic direction is increasingly clear.