Siemens Energy: Taiwan Mega-Order and Record Backlog Underpin Roadshow as Gamesa Remains a Drag
31.05.2026 - 16:02:23 | boerse-global.de
Siemens Energy’s management kicks off a European roadshow this week armed with a landmark gas turbine contract from Taiwan and a record order book, yet the share price sits 13% below its 52-week high — a reminder that the group’s wind power headache has not gone away. After meetings in Zürich, Munich, Copenhagen and Stockholm starting Tuesday, the market will judge whether the strength of the grid business and a raised outlook are enough to offset the persistent drag from Siemens Gamesa.
The largest single item on the agenda is a deal with Mai-Liao Power Corporation in Taiwan for HL-class gas turbines and long-term services at a 2,400 megawatt power plant. Scheduled to enter commercial operation by the end of 2029, the facility will cover roughly 5% of Taiwan’s electricity generation. The contract adds fresh weight to an already record order intake of €17.7 billion in the second quarter of fiscal 2026, pushing the total order backlog to €154 billion. Siemens Energy says 93% of its second-half revenue is already secured.
The upgraded full-year guidance underscores the momentum. Net profit for fiscal 2026 is expected at around €4 billion, while comparable revenue growth is forecast at 14% to 16%. Most striking is the free cash flow target: management doubled the forecast to roughly €8 billion, a far cry from the initial €4?billion to €5?billion range. The improvement is driven largely by the Grid Technologies unit, which has become the group’s engine. In the United States alone, grid orders doubled year-on-year to €6.94 billion in the second quarter, with revenues climbing 45.7%. Siemens Energy plans to invest roughly €2 billion in grid infrastructure by 2028.
But the wind division, Siemens Gamesa, remains the weak link. The unit posted a negative free cash flow of €654 million in the quarter, and chief executive Christian Bruch has confirmed that breakeven is unlikely before the fourth quarter of fiscal 2026. The rehabilitation of the wind business continues to consume resources even as the grid side booms.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Against that backdrop, the share price has been consolidating. At Friday’s close of €162.60, the stock has lost about 7% over the past 30 days and trades just below its 50-day moving average of €167.35. The 52-week high of €188 — reached after a near-doubling over twelve months — now looks distant. On the plus side, the relative strength index stands at a neutral 53.1, and the shares are still 21.9% above the 200-day line at €133.43. First chart support is seen around €168, with stronger floors at the 100-day moving average of €158.76 and the psychological €150 handle. Annualised volatility remains elevated at 49.6%.
The analyst community is deeply divided. Barclays sets a target of €110, while JPMorgan sees the stock at €225 — a spread of €115 that reflects the uncertainty over Gamesa’s recovery trajectory. Bulls point to the global electrification trend and the record backlog; bears argue that the wind unit’s cash burn will weigh on the overall valuation for quarters to come.
Broader market forces could add to the mix this week. The European Central Bank’s interest-rate decision on 11 June may inject fresh volatility into energy names, while recent record-level investments in German battery storage and the start of capacity reservations for the hydrogen core network in March underpin the sector’s long-term appeal.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
The roadshow gives Siemens Energy the chance to present a coherent narrative: new orders at record levels, a turbocharged grid business, and a clear cash flow trajectory, all while the wind unit limps towards stability. Whether investors will reward the story with a move back towards €188, or continue to discount the Gamesa overhang, should become clearer in the first half of this week.
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