Siemens Energy Rebounds as Record Orders and Iraq Deal Offset AI-Driven Selloff

Siemens Energy shares rose 2.3% to EUR 135.86 after an AI-spending selloff, as a new Iraq energy memorandum and record Q3 orders supported the stock.

Siemens Energy shares staged a modest recovery on Wednesday, climbing 2.3% to EUR 135.86 after closing the prior session at EUR 132.82. The bounce followed a bruising start to the week, when anxiety over the pace of artificial intelligence infrastructure spending rippled through the technology and energy equipment complex.

The selloff was triggered by public caution from Anthropic's chief executive, who warned about the risks of the current buildout tempo and urged greater restraint on massive investments. Elon Musk echoed those concerns, and because Siemens Energy is widely viewed by investors as a key supplier to the power-hungry data center boom, its stock absorbed the blow alongside other energy infrastructure specialists. Wednesday's gain suggests market participants are using the calmer tone in the tech sector as an opening to buy back into the name.

Iraq Memorandum Adds to Global Project Pipeline

The rebound came a day after Siemens Energy disclosed a far-reaching energy cooperation agreement with Iraq. CEO Christian Bruch signed a memorandum with the Iraqi Ministry of Electricity in Berlin on Tuesday, in the presence of Iraqi Prime Minister Ali al-Saidi and Merz. The pact covers collaboration on expanding and modernizing Iraq's electricity supply.

For Baghdad, the arrangement forms part of a broader push to attract foreign investment. Al-Saidi used the Berlin visit to court German companies for rebuilding the country's infrastructure, while his government signaled increased oil deliveries to Europe and outlined plans for pipeline routes through neighboring states. The talks carried political strings as well: Merz pressed for tangible progress on anti-corruption efforts in Iraq and called for an end to the blockade in the Strait of Hormuz and a halt to Iran's nuclear program.

Investors greeted the news with restraint. Siemens Energy shares closed Tuesday down 0.5% at EUR 133.08, with lingering AI-related unease weighing on energy technology names. Even so, market observers continue to assign considerable weight to the group's operational potential. Deals of this kind allow Siemens Energy to deepen long-term project relationships and strengthen its maintenance business — a priority as utilities and emerging economies alike modernize generation capacity and transmission grids.

Record Quarter Underpins Raised Guidance

The company's operating momentum offers firmer support than any single agreement. In the third quarter of fiscal 2026, Siemens Energy booked a record order intake of EUR 17.9 billion, driven primarily by strong demand from the United States. The total order backlog swelled to EUR 162 billion.

Quarterly revenue, adjusted, rose 18.5% year over year to a peak of EUR 11.4 billion. The wind power subsidiary Siemens Gamesa contributed to the improvement, posting a positive result for the first time since fiscal 2022 and staying on track to reach operating break-even during the current year. Against that backdrop, management reaffirmed the annual guidance it raised after the first half and expects the adjusted operating margin at the upper end of its targeted range.

Spinoff and Rebranding Take Shape

Beyond day-to-day operations, the executive team is pressing ahead with a structural overhaul. Roughly two weeks ago, the company unveiled plans to spin off its Transformation of Industry division, a business that generated EUR 5.7 billion in revenue in fiscal 2025 with 17,000 employees and an operating margin of 11.3%.

A sweeping brand change is also in the works. Years after separating from former parent Siemens AG, Siemens Energy is preparing to adopt the independent name Omterra, under which both Siemens Energy and Siemens Gamesa entities will be bundled. The transition is slated to begin later this year.