Siemens Energy Posts Stellar Q2 but Stock Slips as Investors Weigh Gamesa Recovery and Peak Valuation
18.05.2026 - 09:01:58 | boerse-global.de
Siemens Energy raised its share buyback target to up to €3 billion for the current fiscal year, a sharp acceleration from the previous €2 billion ceiling, while simultaneously reporting record orders and lifting its full-year profit forecast. Yet the market responded with a shrug. The stock closed at €169.18 on Friday, shedding 5.13% over the week — a classic “sell the news” reaction that underscores how little room for error remains after the shares more than doubled over the past twelve months.
The Munich-based group delivered what on the surface looks like a flawless second quarter. Revenue climbed to just over €10.3 billion from January through March, while profit before special items hit €1.16 billion — a substantial jump year-on-year. Order intake surged 29.5% to €17.749 billion, comfortably beating the analyst consensus of €15.6 billion, and the order book swelled to an all-time high of €154 billion. Free cash flow before taxes leapt 42% to €1.98 billion, boosted by advance payments on new contracts.
Investors, however, took the opportunity to lock in gains after a blistering twelve-month rally that left shares trading at a forward price-to-earnings ratio of more than 42 for the current fiscal year. With such a lofty multiple, any whiff of uncertainty can trigger profit-taking. The market’s skepticism revolves primarily around one question: can Siemens Gamesa finally stabilise?
Should investors sell immediately? Or is it worth buying Siemens Energy?
The wind-turbine subsidiary narrowed its operating loss to €44 million in the second quarter, an improvement, but remains the decisive swing factor for the group’s full-year targets. Management now expects net profit of around €4 billion and free cash flow of approximately €8 billion for the year — both upgrades from earlier guidance. However, these forecasts hinge on Gamesa achieving breakeven in the second half. A strong recovery in offshore wind from the summer onward is needed to flip the division into the black.
Analysts are largely betting on the record order book to underpin future growth. Goldman Sachs and Bernstein both raised their price targets to above €210, maintaining buy ratings. UBS, meanwhile, noted that the current cash flow guidance sits well above previous market expectations, pointing to sustained demand for gas turbines, grid equipment, and infrastructure tied to artificial intelligence. The buyback increase — part of a broader €6 billion programme running through 2028 — reinforces the board’s confidence in cash generation.
On the geopolitical front, Siemens Energy is taking a pragmatic approach to potential US tariffs. The group operates 28 manufacturing sites in America and is investing roughly $1 billion in new capacity, including a high-voltage switchgear facility in Mississippi. Management estimates any tariff-related hit at a low triple-digit million euro amount, a risk they consider manageable given the local production footprint.
The next major milestone comes on 5 August, when Siemens Energy is expected to release its third-quarter results. A strategic update for the period to 2030 is planned for November. Between now and then, two themes will dominate the narrative: the pace of Gamesa’s turnaround and the margin that can actually be extracted from that €154 billion order backlog. Until both are proven, the market’s scepticism is unlikely to fade.
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