Siemens Energy Juggles €1 Billion Buyback and €12.4 Billion Spin-Off as Shares Power Higher
Published on 07/01/2026 at 14:56 | Redaktion boerse-global.de
The German industrial group is deploying capital on two fronts simultaneously. While it accelerates a massive share repurchase programme that pulled 2 million shares off the market in June alone, management is also laying the groundwork for a potential spin-off of its industrial division—a move that could unlock an estimated €12.4 billion in value.
Buyback picks up pace
Siemens Energy spent €322.1 million on its own stock last month, acquiring roughly two million shares at an average price of €157.41. The purchases form part of the second tranche of a programme that authorises up to €1 billion in buybacks by September 2026, with a hard cap of 57 million shares. Longer term, the board has set its sights much higher, targeting a total buyback volume of €6 billion by fiscal 2028.
The company has kept its options open regarding the use of these shares. They may either be cancelled outright—boosting earnings per share by reducing the float—or allocated to employee compensation and incentive plans. No final decision has been disclosed.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Spin-off speculation adds another catalyst
At the same time, Siemens Energy is exploring a separation or initial public offering of its “Transformation of Industry” unit, which manufactures compressors and steam turbines. The division has seen its order book swell thanks to surging demand from data centres, driven by the artificial-intelligence boom. According to market estimates, the business could be valued at around €12.4 billion, with the parent company potentially selling roughly 60% of the stake in a first step.
Operationally, the wider group is firing on all cylinders. For fiscal 2026, management has raised its guidance: like-for-like revenue growth of 14% to 16%, an adjusted margin of 10% to 12%, and net profit of about €4 billion. That improving financial profile has drawn bullish analyst commentary. Berenberg’s Richard Dawson recently lifted his price target to €205, while the consensus estimate sits at €195, with the most optimistic call at €250. Nineteen out of 25 analysts currently rate the stock a buy.
Stock riding high but still has room to run
The buyback has been executed against a backdrop of strong market momentum. Shares currently trade at €167.70, just a whisker below the 50-day moving average of €168.44. Year-to-date, the stock has climbed 36.56%, and over the past twelve months the gain stretches to 80.36%. That performance mirrors the broader tailwind enjoyed by industrial energy plays, though the company’s unique mix of buyback firepower and spin-off optionality sets it apart from rivals.
Next test arrives in early August
Investors will get the next hard data point on 5 August, when Siemens Energy publishes its third-quarter results. The report will not only confirm whether the underlying business continues to deliver on its upgraded targets, but also whether the spin-off plans are progressing from rumour to reality. In the meantime, the company is required by law to disclose further buyback transactions within seven trading days of execution, giving the market a running read on the pace of its share repurchases in July.
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