Siemens Energy profit triples to €1.6B on record order intake

Siemens Energy Q3 profit before special items more than tripled to €1.62 billion, with orders hitting a record €17.9 billion.

"Global demand for electricity — and consequently for our products — remained strong in the third quarter," Christian Bruch, President and CEO of Siemens Energy, said. "The fact that our wind business has returned to profitability in a quarter for the first time since 2022 is a fantastic achievement by this team."

Revenue rose 18.5% on a comparable basis to €11.4 billion, beating the €11.25 billion consensus compiled by Visible Alpha. Profit before special items also exceeded the €1.38 billion analyst estimate. Net income climbed to €1.188 billion, or €1.28 per share, from €697 million a year earlier. Free cash flow before tax surged to €2.319 billion from €419 million.

The results reflect surging demand for gas turbines and grid equipment driven by AI data center expansion in the United States and power plant builds in the Middle East. Siemens Energy now expects to land at the upper end of its 10% to 12% profit margin guidance for fiscal 2026, with revenue growth of 14% to 16%.

Siemens Gamesa, the wind turbine subsidiary that has weighed on earnings since 2022, delivered its first positive quarterly result since fiscal year 2022, helped by cost cuts and higher capacity utilization. The division is on track to reach break-even for the full fiscal year.

Order intake grew more than 8.5% on a comparable basis to €17.9 billion, with a book-to-bill ratio of 1.57. The order backlog rose to €162 billion at quarter-end. Gas Services set a new record for order intake, while Grid Technologies and Transformation of Industry also posted strong increases.

By segment, Gas Services is expected to grow revenue 16% to 18% with a profit margin of 14% to 16% for the full year. Grid Technologies targets revenue growth of 25% to 27% with margins between 18% and 20%. Transformation of Industry expects 5% to 7% growth at 11% to 13% margins.

The company's shares have risen nearly seven-fold over the past two years, tracking demand for power equipment that supports AI data centers. GE Vernova, Siemens Energy's closest peer, also cited data center demand as the main driver of its quarterly results last month, though it reported losses at its wind business.

The guidance raise shows management expects power demand to keep accelerating through fiscal 2026. Investors will watch the full-year results and the fiscal 2027 outlook for updated segment margins and capacity expansion plans.

This article is for informational purposes only and does not constitute investment advice.