Siemens Energy’s Record Orders and Buyback Can’t Halt the Slide as Q3 Results Loom

Siemens Energy finds itself in a curious bind. The Munich-based company just posted record quarterly orders of €17.7 billion, raised its full-year profit guidance to around €4 billion, and launched a €1 billion share buyback — yet its stock has fallen 24% from the all-time high set at the end of April. Shares changed hands at €148.56 on the latest trading day, down roughly 5%, after already shedding nearly 17% over the past 30 sessions.

The disconnect between operational momentum and market sentiment is stark. Analysts at Deutsche Bank argue that investors are overestimating the risk from potential overcapacity in gas-fired power plants. The new-build power plant business accounts for only about 15% of Siemens Energy’s total revenue, meaning the headline concern hits a much smaller slice of the group than many assume. The real earnings anchor, they point out, is the high-margin service business — a segment they believe the current valuation fails to properly reflect.

That service franchise, combined with the long-running turnaround at the struggling wind turbine unit Gamesa, forms the basis of the bull case. The second quarter of fiscal 2026 delivered earnings per share of €0.89, up from €0.50 a year earlier, on revenue of €10.29 billion. Net income reached €835 million, and the company raised its full-year net profit target to roughly €4 billion. Yet the market remains fixated on the near-term headwinds. The relative strength index sits at 32.4, hovering just above the oversold threshold, and the stock now trades nearly 12% below its 50-day moving average — technical signals of selling pressure rather than a fundamental reassessment.

Should investors sell immediately? Or is it worth buying Siemens Energy?

The buyback programme, launched on 4 June and running until the end of September, is designed in part to signal management’s confidence. Up to €1 billion in shares will be repurchased, with some allocated to employee equity plans and the rest cancelled. But the gesture has done little to stem the decline so far. Even the analyst community is pricing in a rebound: Jefferies’ Lucas Ferhani recently lifted his target to €215, citing accelerating order momentum in grid infrastructure and Siemens Energy’s growing role in European and US energy transition projects. The consensus among analysts stands at roughly €195, with some estimates as high as €250.

The next major catalyst arrives on 5 August, when Siemens Energy reports its third-quarter results. Until then, traders expect the stock to oscillate in a corridor between €138 and €177, barring fresh news on the Gamesa restructuring or the service business. The fact that shares remain roughly 72% higher over the past twelve months, despite the recent correction, highlights how far the decline can stretch without derailing the structural recovery story. The real test in August will be whether the record order book can finally translate into margin expansion at Gamesa — the missing piece that could close the gap between analyst optimism and market reality.

Ad

Siemens Energy Stock: New Analysis - 9 June

Fresh Siemens Energy information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.

Read our updated Siemens Energy analysis...

en | DE000ENER6Y0 | SIEMENS | boerse | 69509288 |