Siemens Energy: Two Blockbuster Deals and a Q3 Orders Beat Signal Accelerating Momentum

Siemens Energy lands a €2.5B converter option for North Sea grid link and a major gas-turbine order in Oman, as Q3 orders beat expectations, sending stock up 4%.

Siemens Energy has kicked off the second half of the year with a powerful one-two punch, landing a massive gas-turbine contract in Oman and securing a €2.5 billion converter option for a critical North Sea grid link. The twin deals come as the company stunned the market with third-quarter orders that overshot expectations, sending the stock up around 4% on the day to €166.76.

A pre-close management briefing revealed order intake of roughly €17.7 billion for the fiscal third quarter — about 4% above consensus estimates. The outperformance was driven by the Gas Services and Grid Technologies divisions, with Jefferies, Metzler, and Citigroup all chiming in with positive takes. Jefferies kept its buy rating and €215 price target, while Metzler’s Nikolas Demeter flagged potential upside in steam turbines and power transmission.

A Converter Bet Worth €2.5 Billion

The company’s pipeline got a hefty injection of visibility from a joint project with NSORe: the “North Sea Connector 2”, an offshore converter for a German transmission link. The initial contract includes an option for a second converter, bringing the potential volume to around €2.5 billion. The equipment will be manufactured in Rostock, securing over 500 jobs locally.

That announcement was quickly followed by a separate gas-turbine order from Oman. Siemens Energy will supply six F-class gas turbines and six generators for two combined-cycle power plants at Misfah, near the capital Muscat, and Duqm in the Al Wusta special economic zone on the Arabian Sea coast. The combined capacity of nearly 2.6 GW represents an almost 20% boost to the sultanate’s generation fleet, enough to power more than two million households on paper.

The turbines — type SGT5-4000F — will be built in Berlin, and the SGen5-2000P generators in Mülheim, Germany. Siemens Energy did not disclose the value of the equipment supply, but the real long-term value lies in the accompanying service agreements, both running for 20 years. The turbines are also designed for hydrogen co-firing, giving Oman flexibility to decarbonise over time. The project is being developed by a consortium including Etihad Water and Electricity Company, Nebras Power, Bahwan Infrastructure Services and Korea Western Power, with Nama Power and Water Procurement Company as the offtaker.

Stock on a Run, but Room to Climb

Despite the day’s gain, the company remains well below its 52-week high of €195.54 — roughly 15% away — and has advanced nearly 36% since the start of the year. The stock’s current level also sits just under the 50-day moving average of €168.41, though it trades about 19% above the 200-day line. On a 12-month basis, the share price has nearly doubled.

Management has guided for full-year revenue growth of 14% to 16% and a net profit of around €4 billion, with official third-quarter results due on 5 August. Investors will be watching closely to see when the Oman deal and the converter option start showing up in the order book. For now, the combination of a quarterly orders beat and two high-profile contracts — one tied to the AI-driven demand for stable power infrastructure and the other to the global push for electrification — has given the market ample reason to keep bidding the stock higher.