By the end of the decade, the energy technology company Siemens Energy wants to achieve double-digit annual growth in sales and earnings. The development is driven by the global hunger for energy through AI. The order books are full to bursting. The shareholders should also benefit from this.
After a sharp jump in profits in the past financial year, Siemens Energy is paying out significantly more money to its shareholders. The energy technology group announced that it would more than triple the dividend to 2.30 euros per share and expand the share buyback program to up to nine billion euros by the end of the 2030 financial year.
Thanks to bubbling income in the business with power generation systems and a return of the wind turbine subsidiary Gamesa to the profit zone, the DAX group was able to more than double its operating result before special items to 5.5 billion euros in 2026. Revenues climbed by 15.5 percent to more than 44 billion euros. The figures were therefore in line with market expectations. The bottom line was 4.1 billion euros, twice as much as a year ago. The jump in sales of 21.5 percent in the fourth quarter of the fiscal year was higher than expected. The company announced further increases for the 2027 financial year and up to 2030. The share price rose by over eight percent to 129 euros.
“The Siemens Energy team has met all of the increased forecasts, significantly increased earnings and reached the break-even point in the wind business,” said CEO Christian Bruch. This creates the basis for the next phase of transformation. "Our goals for 2030 provide a clear direction and underline our successful implementation in a positive market environment." With the increased dividend and a continuous share buyback program, shareholders benefited from the business success.
The group has received a huge boost in recent years from rising demand for turbines and the grid equipment to power data centers needed for artificial intelligence (AI). Last year alone, the company won orders worth around 68 billion euros, an increase of almost 19 percent. In total, there are orders worth 168 billion euros on the books - that's almost four times the annual turnover. In addition, the wind turbine subsidiary Gamesa, which had been making high losses for a long time, returned to profit.
Bruch does not currently see any major headwind for data centers in the USA after the midterm elections there. Debates as we see them are typical for infrastructure projects. And for some installations that are being built, one also has to ask whether it is sensible to generate electricity in this way if it leads to noise and environmental pollution. In the USA, data centers are sometimes powered by diesel generators. However, it is unclear whether Bruch was referring to this.
Bruch announced sales growth of 14 to 16 percent for 2027 and a profit margin before special items of 14 to 16 percent. He is targeting average annual sales growth of 12 to 14 percent by 2030. The profit margin before special items is expected to be 20 to 22 percent in 2030.
According to the manager, the group is pushing ahead with considerations for a partial sale of the Transformation of Industry steam turbine business. Its growth opportunities are not as great as those of the Grid Technologies and Gas Services areas. The group wants to hold talks with investors from spring. But the process will take time. An IPO is also not ruled out. Siemens Energy also wants to retain a large share. He assumes a share significantly higher than 20 percent. “We always communicate internally at 40 percent.” The division, which has 17,000 employees, produces, among other things, steam turbines, compressors and systems for hydrogen production. Customers are particularly companies in the energy-intensive industry that want to become more climate-friendly.
Unlike many German companies, Siemens Energy has recently created jobs. At the end of the financial year there were 108,000 worldwide, around 5,000 more than the year before. In Germany the number rose from 27,000 to 29,000.
If the group achieves its desired goals, it will no longer do so under the name Siemens Energy. Because he renames himself Omterra. This will be implemented gradually from January. However, it will probably take a year and a half for the old name to disappear completely, says Bruch. The background to this is, among other things, that the naming rights continue to belong to the old parent company Siemens. Last year alone, Energy had to pay around 400 million euros for it.
