Siemens Energy Kicks Off EUR 2 Billion Buyback as Siemens AG's Stake Slips Below 5%
Published on 09/24/2026 at 12:50 | Editorial boerse-global.de
Siemens Energy began the third tranche of its share repurchase program on Thursday, a move that will see the Munich-based energy technology group buy back up to EUR 2 billion worth of its own stock through the market by no later than March 31, 2027. The program is capped at a maximum of 50,000,000 shares.
The stock traded at EUR 144.24 on the day, up 0.5%, bringing its year-to-date advance to 20%. The buyback is the kind of capital-discipline measure companies typically deploy to put excess liquidity to work for remaining shareholders and to give earnings per share a mathematical lift. Stretching the purchases over more than half a year gives management room to pace its acquisitions according to prevailing market conditions.
Investors will get their next look at the company's trajectory on September 30, when Siemens Energy holds a pre-close call for the fourth quarter of fiscal 2026. The 30-minute webcast is designed to give institutional investors a read on the business ahead of the regular year-end reporting.
Siemens AG Continues Its Retreat
The ownership register is shifting alongside the buyback. Former parent Siemens AG has trimmed its direct holding to 4.98% of voting rights, crossing below the 5% disclosure threshold on September 8. Its remaining position amounts to 42,896,843 voting rights. The Munich industrial group has been steadily reducing its stake since the spin-off and separate listing, a process that has widened the free float available to international investors.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Order Book and Wind Unit Provide the Backdrop
The buyback lands against a backdrop of robust operating momentum. In the third quarter of fiscal 2026, the period ending June 30, 2026, Siemens Energy generated revenue of EUR 11.45 billion, up 17.5% year over year, while earnings per share climbed to EUR 1.28 from EUR 0.71 in the prior-year quarter.
Demand for power generation equipment was especially strong. Orders hit a record EUR 17.9 billion, swelling the total order backlog to EUR 162 billion. The book-to-bill ratio came in at 1.57. The wind division, Siemens Gamesa, delivered a positive result for the first time since fiscal 2022. CEO Christian Bruch said the brisk summer demand kept the company on track for the upper end of its own profit margin range.
Breakup, Rebrand and a New Name
Beyond day-to-day operations, Siemens Energy is redrawing its corporate map. Roughly a month ago, the supervisory board approved the spin-off of the Transformation of Industry division, which bundles steam turbine, hydrogen and industrial activities. That unit posted revenue of EUR 5.7 billion and an 11.3% margin in fiscal 2025 with around 17,000 employees, and is to be established as a standalone entity. Siemens Energy is targeting deconsolidation while intending to retain a significant minority stake.
A sweeping brand change is coming at the same time. Siemens Energy and Siemens Gamesa Renewable Energy will operate under the joint name Omterra, with the process rolling out gradually later in 2026. The shift stems from a time-limited agreement covering use of the Siemens brand with former parent Siemens AG.
Analysts Look Past September's Dip
Market sentiment has weathered recent turbulence. Worries about future investment in AI data centers and debates over regulatory requirements briefly pushed the shares down to EUR 131.28 in mid-September. Media reports indicated the stock recovered to around EUR 146 in the following days, and on Thursday it changed hands at EUR 143.02, a modest 0.3% decline on the day.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
Several research houses struck a positive tone on Tuesday. According to media reports, nine of eleven tracked analysts recommend buying the stock. Alexander Virgo of Evercore-ISI set a target of EUR 250, while Phil Buller of JPMorgan sees a target of EUR 245, implying considerable upside. Across all tracked ratings, price targets range from EUR 130 to EUR 250.
Gas Partnerships and the Road Ahead
On the operational front, Siemens Energy is pushing technological partnerships. Together with Technip Energies and Honeywell Technologies, it is working on the modular SnapLNG 1.5 solution. The standardized concept aims to significantly accelerate the construction of natural gas liquefaction projects. Beyond shorter project timelines, the partners' main focus is on meaningfully reducing greenhouse gas emissions during ongoing operations through modern process technology.
How smoothly the planned division spin-off proceeds, and whether Siemens Gamesa reaches its target of operational break-even in 2026, are likely to remain the key determinants of the stock's next move.
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