Siemens Energy Taps AI Boom and Grid Overhaul as Spin-Off Plan Reshapes Investment Case
Published on 06/22/2026 at 17:35 | Redaktion boerse-global.de
Siemens Energy has become one of the DAX’s standout performers over the past twelve months, with the stock surging 95% to €170.66. That rally, however, is about much more than a simple recovery story. The Munich-based group is now straddling two powerful tailwinds — an unprecedented wave of orders from both the artificial intelligence data-centre boom and Europe’s accelerating grid expansion — while simultaneously weighing a radical corporate restructuring that could unlock further value.
The most immediate catalyst is the sheer scale of new business. In the second quarter of its 2026 financial year, Siemens Energy booked a record order intake of €17.7 billion, pushing its total backlog to a staggering €154 billion. Management has responded by raising its full-year guidance: comparable revenue growth of 14% to 16%, net profit of around €4 billion, and a free cash flow before taxes of roughly €8 billion. That operational momentum has been underpinned by two landmark contracts in recent weeks. On one side, the group secured a contract to supply three SGT6-5000F gas turbines for a power plant in Amarillo, Texas, developed by Fermi America with backing from Spanish EPC firm TSK. The facility is part of a long-term plan to build more than 11 GW of capacity to supply AI data centres, whose insatiable appetite for reliable baseload power is reviving demand for gas-fired generation.
On the other, Siemens Energy is reinforcing the backbone of Europe’s energy transition. Together with partners, it is building the North Sea Connector 2, a 2 GW offshore grid connection for the German transmission system operator 50Hertz. Notably, 95% of the value creation will take place in domestic factories in Nuremberg and Berlin. That single project underscores the structural investment needed in Germany alone: analysts estimate that spending on transmission networks could reach up to €392 billion by 2045. Siemens Energy, once viewed as a broad industrial conglomerate, is increasingly positioning itself as a system integrator for the infrastructure essential to the green transition.
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Yet the most transformative development may be a prospective shift in the company’s portfolio. Jefferies analyst Lucas Ferhani has described a possible spin-off of the Transformation of Industry (ToI) division — which bundles compressors and steam turbines — as a strategic masterstroke. Without ToI, Siemens Energy would become a pure-play on the energy transition, focused squarely on gas turbines and grid technology. Deutsche Bank’s Gael de-Bray, who reiterated a buy rating with a €200 price target, values the ToI unit at around €12.4 billion. A separation would sharpen the group’s margin profile and help close the valuation discount to peers such as GE Vernova. Jefferies, with a €215 target, sees 26% upside from current levels if the restructuring materialises.
The market is already pricing in some of that optimism. The stock closed last week at €168.88, up 9.4% on the week and roughly 38% year to date. The 50-day moving average sits just above at €169.31, and a clean break through that level would open the path back to the 52-week high of €195.54, hit in April. The relative strength index stands at a neutral 56.8, while the shares trade 23% above their 200-day average — technically robust but not overbought.
Beyond the core markets, Siemens Energy is also expanding its global footprint. A recent delegation trip to Turkey aligns with Ankara’s plan to invest around €108 billion in renewables and grid infrastructure by 2035. Early presence in such growth markets offers a structural edge over competitors. Meanwhile, the legacy problems at wind-turbine subsidiary Gamesa are receding from the investment narrative, allowing the cleaner story of a focused energy-transition champion to take centre stage.
The next concrete milestone is a pre-close call on 29 June, where management is expected to provide an update on current trading. If the spin-off talk gains further traction, the old “crisis conglomerate” label will be firmly retired. Siemens Energy has moved from a turnaround story to a compounding growth narrative — but the next leg of the rally depends on execution, both in the factories and on the balance sheet.
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