Siemens Energy: Buyback Progress and Offshore Ambitions Tested by Wind Sector Jitters
Published on 07/28/2026 at 04:42 | Redaktion boerse-global.de
Siemens Energy’s share price has been caught in a tug-of-war between operational strength and sector headwinds, as the company pushes ahead with a €6 billion buyback programme while analysts deliver sharply contrasting verdicts on its outlook. The stock closed Monday at €149.88, down 23.35% from its 52-week high of €195.54 reached in late April, and has slipped 6.72% below its 50-day moving average — a technical signal that has rattled some investors.
The latest blow came from the Erste Group, which downgraded the stock from “Buy” to “Hold” on Monday, citing persistent order book issues at the wind turbine subsidiary Siemens Gamesa and ongoing operational losses in that division. The downgrade pushed shares down a further 1.11% to €149.02, extending a weak patch that began after US rival GE Vernova slashed its profit targets for the wind segment last Friday. That warning sent a chill through the sector, briefly dragging Siemens Energy down more than 7% on July 22 — a move the Deutsche Bank later called overdone, reiterating its Buy recommendation with a €200 price target.
Buyback momentum and institutional backing
Despite the recent turbulence, the company has been steadily repurchasing its own shares. Between June 4 and July 19, Siemens Energy bought back 3,934,455 shares as part of the second tranche of a buyback programme running until September. The broader plan, announced earlier this year, authorises up to €6 billion in repurchases through 2028, with the first accelerated tranche of up to €1 billion set to conclude by September 30. The buyback signals management’s confidence in the company’s valuation at current levels.
Institutional interest is also ticking up. Asset manager Amundi disclosed on July 9 that it had crossed the 3% voting rights threshold in Siemens Energy — a sign that long-term investors are positioning themselves despite the recent volatility.
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Divergent analyst views
The analyst community remains split, with the Erste Group’s cautious stance standing in contrast to more bullish calls elsewhere. UBS raised its price target sharply from €175 to €210 on July 20, citing strong momentum in the gas turbine business that the bank expects to continue through 2029. JPMorgan holds the most optimistic view on the Street, with a €235 target, while Jefferies analyst Lucas Ferhani reaffirmed a Buy rating and €215 target on July 15, pointing to structural electricity demand from US data centres as a growth driver.
The range of price targets — from €200 to €235 — sits well above the current share price, suggesting that most analysts see the recent sell-off as overdone. Yet the Erste Group’s downgrade serves as a reminder that the wind division remains a persistent drag on sentiment, with the risk that third-quarter results due August 5 could reveal fresh problems at Siemens Gamesa.
Strategic bets beyond turbines
Away from the quarterly earnings calendar, Siemens Energy is laying groundwork for future growth in two distinct areas. Together with a German shipyard, the company announced plans to build a 2-gigawatt converter platform for use in the North Sea — the first project of its kind — with 95% of components sourced from German factories. The initiative carries industrial policy weight and underscores the company’s push into offshore energy infrastructure.
In parallel, Algerian state oil company Sonatrach confirmed a memorandum of understanding with Siemens Energy to develop a hydrogen hub in Algeria, including potential local production of electrolysers. While near-term revenue from the project is unlikely, it signals the company’s ambition to establish a foothold in the emerging green hydrogen market.
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A rebrand with real savings
The company is also preparing to cut costs through a branding overhaul. Siemens Energy and Siemens Gamesa will be unified under the name “Omterra”, a move that will save roughly €300 million annually in licensing fees paid to the former parent Siemens AG. The rebranding, set to take effect as the existing licence agreement expires, is designed to cement the company’s independence following its spin-off.
The August 5 test
All eyes are now on August 5, when Siemens Energy reports third-quarter results. The consensus estimate calls for earnings per share of €1.17. With a record order backlog of €154 billion — reported in May alongside a book-to-bill ratio of 1.72 — the operational foundation appears solid. The question is whether the wind division’s troubles will overshadow the strength in gas turbines and grid technology, and which analyst narrative will ultimately prevail in the market’s judgment.
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