Siemens Energy's Grid-Power Double Act Lures Buyers as UBS Lifts Sector Outlook
Published on 06/17/2026 at 18:33 | Redaktion boerse-global.de
When a company lands a gigawatt-scale offshore converter platform in the Baltic and a gas-turbine mega-deal in the Gulf within the same quarter, the message is clear: Siemens Energy is no longer a turnaround story — it's a growth story with two distinct engines. The market is taking notice.
The Swiss bank UBS kept its buy rating on the stock this week, setting a price target of €175. Analyst Andre Kukhnin argued that a recent pullback in European industrials, combined with a tentative US-Iran framework agreement, creates a fresh entry point for investors in capital-goods names. That geopolitical detente could unlock new project pipelines across the Middle East, a region where Siemens Energy already has a foothold through its Taweelah C order in Abu Dhabi.
Siemens Energy shares on Xetra were recently trading around €156, implying roughly 12% upside from current levels if the bank's target is hit. The stock has already climbed 83% over the past twelve months and about 31% since the start of the year. At €161.66, the relative strength index sits at a neutral 50, suggesting the rally has room to run without becoming overextended.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The bull case rests on numbers the company itself has hardened. In May, management raised its fiscal 2026 outlook, projecting revenue growth of up to 16% and an operating margin between 10% and 12%. Free cash flow is now expected to hit roughly €8 billion, a dramatic step-up from earlier forecasts. The biggest contributor is Grid Technologies, where demand for transmission infrastructure and electrification is driving anticipated revenue growth of as much as 27% and margins of 18% to 20%.
Backing up those projections are concrete orders. At the Warnemünde shipyard in Rostock, Siemens Energy and partner Neptun Smulders are building the North Sea Connector 2, an offshore converter platform that will funnel wind power from the North Sea into the German grid. The project showcases the company's domestic manufacturing muscle — transformers from Nuremberg, switchgear from Berlin — which secures political backing and locks in decades of maintenance revenue tied to Germany's renewable expansion.
In Abu Dhabi, Taweelah C uses Siemens Energy's HL-class gas turbines, designed for high efficiency and ready for future carbon capture. It's a reminder that while Europe pushes renewables, fast-growing economies still need dispatchable capacity to keep grids stable. That dual-track strategy — advanced gas for emerging markets, grid infrastructure and offshore wind for Europe — is exactly what analysts like Kukhnin are betting on.
Siemens Energy has shed the image of a troubled turbine builder. It now positions itself as the architect of an integrated energy world. Whether that narrative holds depends on whether operating margins keep pace with the order backlog. For now, the market is willing to give it the benefit of the doubt.
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