Siemens Energy’s Grid Boom Drives Record Orders, but Gamesa and Revenue Miss Keep Shares in Check

Siemens Energy reported record €17.75B orders in Q2, beating estimates, but shares fell 7.5% on a revenue shortfall and persistent losses at wind unit Gamesa. Full-year guidance was sharply raised.

Siemens Energy posted a record order haul of €17.75 billion in its fiscal second quarter, blowing past analyst expectations of €15.64 billion by about 13%. Yet the stock closed at €171.68 on Tuesday, down 7.55% on the week, as a revenue shortfall and lingering doubts over its wind turbine subsidiary Siemens Gamesa tempered the headline momentum.

The company’s grid technology division was the standout performer, booking €7 billion in orders, a 41.5% surge from a year earlier. A high-voltage direct-current project in the Baltic Sea worth over €1 billion and rising transformer demand from US data centre operators fuelled the growth. Grid Technologies alone saw its order backlog swell to €49 billion and accounted for roughly €2 billion in data centre contracts in the first half. CEO Christian Bruch expects the division’s transformer and switchgear capacity to increase by about 50% by 2030.

Gas Services also contributed heavily, with €8.9 billion in new orders. The US market was especially strong: total US orders nearly doubled to €6.94 billion, and revenue from the region climbed 45.7% to €2.75 billion. The combined strength pushed the group’s book-to-bill ratio to 1.72 and the overall order backlog to a formidable €154 billion.

The financial results were equally robust. Net profit rose to €835 million from €501 million in the same quarter last year, lifting diluted earnings per share to €0.89 from €0.50. Free cash flow before tax reached €2 billion in the quarter, bringing the half-year total to €4.8 billion, helped by customer prepayments in Gas Services and Grid Technologies.

Management took the opportunity to raise full-year guidance sharply. Comparable revenue growth is now seen at 14% to 16%, up from a prior range of 11% to 13%. The adjusted operating margin is expected to land between 10% and 12%, net profit around €4 billion, and free cash flow before tax approximately €8 billion—double the earlier forecast of €4-5 billion. For Grid Technologies alone, the target is revenue growth of 25% to 27% and a margin of 18% to 20% by year-end.

Despite the upgrades, the market focused on a revenue miss. Group sales on a comparable basis rose 8.9% to €10.29 billion, falling short of the consensus estimate of €10.84 billion. A weaker US dollar weighed on revenue by roughly 550 basis points. With the stock already up 39% since the start of the year and trading just 9% below its all-time high from April, investors took the opportunity to lock in profits.

The other persistent concern is Siemens Gamesa. The wind unit continues to bleed red ink, though the haemorrhage is slowing. Its operating loss before special items narrowed to €44 million from €249 million a year earlier, while the loss margin improved to minus 1.7% from minus 9.2%. Order intake was virtually flat at €846 million. The division’s turnaround hinges not only on cost cuts but also on generation of reliable orders. A positive signal came with the first commercial orders for the new SG 7.0 turbine platform, intended to replace the existing 5.X series.

Siemens Energy remains committed to reaching an adjusted break-even at Gamesa in the current fiscal year—a target to which the full-year guidance is explicitly tied. Activist hedge fund Ananym Capital has called for a spin-off of the wind business, arguing it depresses the valuation of the thriving core operations. CEO Christian Bruch has rejected that idea, betting instead on the operational turnaround.

The next key checkpoint will be Gamesa’s financial performance in the second half. If the unit delivers break-even, the raised guidance gains credibility. If it stumbles again, questions about the group’s structure will resurface. Meanwhile, CFO Maria Ferraro noted that around 93% of the second half of fiscal 2026 is already covered by the order book, with coverage for fiscal 2027 standing at just under 80%. The company plans to unveil new medium-term targets for 2030 alongside its full-year results in November.