Siemens Energy's Buyback Ends as Record Orders Fail to Lift a Stretched Stock
29.05.2026 - 21:43:07 | boerse-global.de
Siemens Energy has wrapped up its €3bn share buyback, removing a key prop just as profit-taking sets in following a blistering rally. The stock, which had surged 93% over the past 12 months, now trades 13.17% below its April 24 high of roundly €188, after slipping as much as 13.84% during the week. On Friday, the shares closed at €163.24, down 2.15% on the day. The retreat, which amounts to a 6.03% drop over the last seven days and a 7.61% slide over 30 days, comes despite a record order backlog of €154bn and upwardly revised guidance.
The buyback programme, executed between March 4 and May 19, saw the company repurchase 12.6 million shares — or 1.465% of its capital — at an average price of €158.50. The initial €2bn envelope was lifted to €3bn after an unexpectedly strong cash flow. Including a €0.6bn dividend paid in March, Siemens Energy has returned a total of €3.6bn to shareholders this year. But with that support now gone, the market’s focus has shifted back to valuation: the stock has climbed 32.93% year-to-date and from its 52-week low of €82.96 it is up more than 95%. Even with a 30-day annualized volatility of 49.83%, the current price leaves little room for error.
Operationally, the machinery is running hard. In the second quarter of fiscal 2026, Siemens Energy booked a record €17.7bn in orders, far exceeding expectations. The company now forecasts comparable revenue growth of 14% to 16% for the full year and an adjusted operating margin of 10% to 12%. Net profit is seen at around €4bn. The standout performer is Grid Technologies, where revenues are expected to surge 25% to 27% and margins to land between 18% and 20%. A recently secured 2,400-megawatt power plant project in Taiwan underscores the sustained demand for transmission equipment and long-term service contracts.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The weak link remains Siemens Gamesa, although the wind-turbine unit is showing signs of stabilisation. Operating losses are narrowing, and the first-quarter shortfall came in smaller than analysts had feared. Still, the division remains in turnaround mode and is seen as the main drag on an otherwise robust industrial picture.
Analysts are divided. JPMorgan reiterated its “Overweight” rating on May 28, with a €225 price target, citing the structural growth in grid infrastructure tied to data centres and AI. Others caution that the high expectations leave Siemens Energy vulnerable to any hiccup. The next major catalyst will be the release of third-quarter results on August 5. According to FactSet, consensus dividends for next fiscal year are in the range of €1.70 to €1.84 per share, making the payout trail more important now that the buyback is done. For the near term, the stock must navigate a narrow channel between a booming order book and a valuation that leaves no room for disappointment.
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