Siemens Energy Lands 1-Gigawatt Turbine Deal as Record Quarter Reshapes the Investment Debate
Published on 08/14/2026 at 12:01 | Redaktion boerse-global.de
The order book at Siemens Energy keeps getting fatter. Babcock & Wilcox, the US industrial group, signed an agreement on Tuesday for 20 steam turbine units with a combined capacity of 1 gigawatt, earmarked for the FastPower programme that accelerates energy infrastructure delivery for data centres. The deal builds on an earlier turbine order from the same customer, adding another layer to what has become a relentless stream of contract wins for the Munich-based group.
The announcement landed barely a week after Siemens Energy posted third-quarter results that smashed expectations on multiple fronts. Revenue climbed 18.5 percent on a comparable basis to €11.4 billion, while net profit nearly doubled to €1.188 billion from €697 million a year earlier. Earnings per share on an undiluted basis rose to €1.28 from €0.71. Free cash flow before taxes leapt to €2.319 billion, helped along by customer prepayments tied to the surge in new business.
Gas Turbines Power the Engine Room
The order intake tells the clearest story. Incoming orders hit a record €17.9 billion in the quarter, with the Gas Services division doing the heavy lifting. That unit booked 15 gigawatts of orders worth €10 billion — a 62 percent jump year on year — and its installed turbine base expanded to 69 gigawatts. Group-wide, the order backlog reached €162 billion, and the book-to-bill ratio stood at 1.57, meaning new orders outpaced revenue by a wide margin.
Demand is so strong that delivery times now stretch beyond three years. Siemens Energy has brought roughly 30 additional production lines for mid-sized gas turbines online since 2025, and chief executive Christian Bruch expects the company to ship 15 to 16 gigawatts of gas turbines in 2026. The expansion continues: 15 large turbine units and 20 more mid-sized units are slated for 2027, with total capacity heading toward roughly 100 units by 2028. Transformer and gas-insulated switchgear capacity is also set to expand by about half by 2030. Grid Technologies ended June with a backlog of €51 billion.
Reuters attributes much of this momentum to US data-centre demand tied to the artificial-intelligence boom, alongside larger projects in the Middle East — a dynamic that shows no sign of cooling.
Wind Unit Finally Earns Its Keep
The turnaround at Siemens Gamesa, long the conglomerate's problem child, is now visible in the numbers. The wind power division posted an operating profit of €75 million in the third quarter, against a loss of €438 million in the same period last year. Analysts had braced for a far smaller gain, and management credits productivity improvements and cost efficiency for the swing.
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The group reaffirmed its full-year guidance: comparable revenue growth of 14 to 16 percent, an operating margin before special items of 10 to 12 percent, and net profit of around €4 billion.
Boardroom Drama and a Branding Overhaul
Investors have another date on the calendar. According to Reuters, Siemens Energy's supervisory board is expected to convene on 25 August for an extraordinary session to discuss a possible spin-off of an industrial division. The report suggests no concrete decisions will emerge from that meeting — it is likely to be a preliminary discussion of structural options.
Those deliberations unfold alongside a planned rebranding. Since mid-July, it has been known that Siemens Energy and Siemens Gamesa Renewable Energy will eventually operate under the name "Omterra," a switch driven by the fact that the Siemens Energy brand is only licensed for a limited period. The transition is set to begin gradually later in 2026.
Analysts Split, Market Stays Cool
The sell-side response to the quarterly numbers was emphatic. JPMorgan lifted its price target to €245 on Wednesday and kept an Overweight rating. Deutsche Bank followed a day later with a target of €210 and a buy recommendation. Jefferies and Berenberg both reaffirmed positive stances on Thursday, with Jefferies setting targets between €215 and €245.
Not everyone is convinced. mwb research maintained its sell recommendation on Thursday, arguing that the good news is already reflected in the share price. That contrarian view remains an outlier.
The market's reaction to the record quarter has been muted — a sign that much of the optimism was priced in beforehand. The shares changed hands at €161.24 in recent trading, roughly 17 percent below the 52-week high of €195.38 reached in April. Even so, the stock is up 34 percent since the start of the year and 64 percent over twelve months, a reflection of how powerfully the gas turbine and grid technology boom has reshaped the company's fortunes. With analyst targets running well above the current price, the gap between Wall Street's enthusiasm and the market's restraint leaves room for debate — and for the board's August meeting to set the next chapter.
