Siemens Energy Wraps Up €2 Billion Buyback, Sets Course for €6 Billion Capital Return as Grid Boom Accelerates

Siemens Energy completes €2B share buyback, lifts revenue forecast as cash pile grows with record €154B backlog and strong profit.

The scale of Siemens Energy’s financial firepower has become clear in recent weeks. Between March 4 and May 19, the group snapped up 12.6 million of its own shares for roughly €2 billion, at an average price of €158.50 apiece. That completes the first leg of a capital return programme that still has plenty of room to run. Management has signalled its intention to buy back up to €6 billion in total by the end of fiscal 2028, with an accelerated tranche of as much as €1 billion this year alone.

Underpinning that ambition is a cash pile swollen by record advance payments. Free cash flow surged during the spring, powered by upfront payments on new orders and a swelling backlog that now stands at €154 billion. The group’s net profit for the first half of fiscal 2026 hit €1.44 billion on revenue of just under €20 billion, while earnings per share more than doubled year on year. That performance prompted Siemens Energy to lift its full?year comparable revenue growth forecast to between 14% and 16%, up from the 11% to 13% range it had previously guided.

The buyback itself leaves the company with options. The repurchased shares can either be used for employee incentive programmes or be cancelled outright. An eventual cancellation would reduce the total share count, pushing earnings per share higher on a permanent basis — a move investors would welcome given the stock’s strong run. Since the start of the year, Siemens Energy shares have added more than 41%, closing at around €178.10 — roughly 5% off the 52?week high but comfortably above key moving averages.

Operating momentum remains broad?based. Grid Technologies and Gas Services are the principal growth drivers, with demand for gas turbines from US data centre operators accelerating the business. The long?troubled wind turbine division, Siemens Gamesa, is steadily moving toward a break?even position, though the market still expects concrete proof. That should come when the group reports third?quarter results on 5 August. Of 21 analysts covering the stock, 19 rate it a buy, with an average price target of €191.40 and the most optimistic projection at €250.

The capital return strategy dovetails with a broader picture of financial strength. Siemens Energy now commands a market capitalisation of roughly €143 billion — a league it barely inhabited two years ago. By front?loading buyback capacity and tightening its grip on a record order book, management is betting that the grid?investment supercycle still has years to run. The final answer on Gamesa’s turnaround, and on whether the cash pile keeps growing, will come in the second half of the fiscal year.