Siemens Order Book Swells 18% as Healthineers Demerger Plans Advance

Siemens shares trade near 52-week high on 18% order surge to €124B backlog; Healthineers spin-off, Mermec acquisition, and Energy stake sale reshape portfolio. Full-year guidance reaffirmed.

Siemens shares are trading within striking distance of their 52-week high, propelled by a powerful combination of operational momentum and one of the most sweeping portfolio overhauls in the conglomerate’s modern history. The Munich-based industrial giant closed Friday at €267.25, a whisker under the May peak of €272.20, after a stretch that saw the stock add more than 10% since the start of the year.

The catalyst for the latest leg higher has been a surge in order intake that masks a more mixed quarterly earnings picture. In the fiscal second quarter, Siemens reported earnings per share of €2.61, down €0.25 from the prior-year period, while revenue held essentially flat at €19.76 billion. The market’s attention, however, fixed on the group’s order book: total orders jumped 18% to €24.1 billion, delivering a book-to-bill ratio of 1.22 — meaning every euro of revenue was matched by €1.22 of new business. The Smart Infrastructure division stood out with a 35% order leap to €7.5 billion. The result pushed the company’s total order backlog to a record €124 billion.

That operational strength is unfolding against a backdrop of radical strategic change. The most consequential move is the planned separation of Siemens Healthineers, the medical technology subsidiary that has long been a core holding. Management is pursuing a direct spin-off under German corporate law, with shareholders set to vote on the transaction at the annual general meeting in February 2027. Under the plan, Siemens will initially transfer 30% of its Healthineers stake directly to investors’ portfolios, with the goal of reducing its own holding to below 20% over time. The entire process hinges on a tax-neutral classification from German fiscal authorities — without that clearance, the timeline stalls.

At the same time, Siemens is reshaping its portfolio on other fronts. The company is acquiring key rail-signaling assets from Italy’s Mermec Group, a deal that brings roughly 1,700 employees and annual revenue of around €430 million into the Mobility division. The purchase puts to rest years of speculation about a potential disposal of the rail unit. On the energy side, Siemens has cut its stake in Siemens Energy to 5.54%, generating proceeds of €3.8 billion.

Management has reaffirmed its full-year guidance, calling for comparable revenue growth in the upper half of a 6% to 8% range and earnings per share between €10.70 and €11.10. Analysts on average project €10.93. The dividend is forecast to rise to €5.65 from €5.35, though that remains a projection rather than a formal declaration.

Wall Street remains divided on the stock’s valuation. Bernstein Research rates the shares “Outperform,” while Barclays Capital sticks with an “Underweight” call. Goldman Sachs lifted its price target in mid-May. The current consensus target stands at €275.22, a slim premium to where the stock trades. At €267.25, Siemens sits nearly 12% above its 200-day moving average of €239.28.

The next key event for shareholders is the third-quarter earnings release in August 2026. Until then, the near-term agenda will be shaped by regulatory approvals: the tax-green light for the Healthineers spin-off and the clearance of the Mermec transaction, which is expected to close by the end of 2026. That timetable gives investors two major milestones to watch as the stock tests its year highs.