Siemens Energy's Portfolio Overhaul Collides With Musk's Turbine Ambitions
Published on 09/02/2026 at 14:10 | Editorial boerse-global.de
The Munich-based power equipment group is navigating a peculiar moment: even as its order book hits record levels, investors are wrestling with two competing narratives — one about what the company might sell, the other about who might build its products instead.
Siemens Energy shares have been caught in a downdraft driven by separate but overlapping concerns. A report that Elon Musk's SpaceX intends to manufacture its own gas turbine blades — potentially slashing lead times by as much as 18 months — knocked as much as 4.4 percent off the stock on Monday. Days earlier, Bloomberg revealed the company had mandated Goldman Sachs to explore selling parts of its steam turbine and Transformation of Industry operations, with CVC, EQT, Bain, Brookfield and KKR all circulating as potential bidders.
The stock closed Tuesday at €140.20, down 1.6 percent on the day and roughly 8.8 percent below its 50-day moving average. Over a seven-day stretch, the shares have shed 7.7 percent. Wednesday brought modest relief, with the stock ticking up 0.8 percent to €141.36.
Analysts Push Back on the SpaceX Threat
The SpaceX headlines triggered an instinctive reaction among traders: the prospect of a customer morphing into a competitor. But analysts who cover the stock see the story differently.
JPMorgan's Phil Buller reaffirmed his "Overweight" rating with a €245 price target on Tuesday, framing the SpaceX plans as evidence of robust demand for gas turbines rather than a competitive menace. He pointed out that the Gas Services division contributes only around ten percent of group revenue — meaning even a successful in-house production push by SpaceX would touch a sliver of Siemens Energy's business.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Jefferies' Lucas Ferhani struck a similar chord, maintaining his "Buy" rating and €215 target. His reasoning: SpaceX's ambitions underscore just how resilient demand for gas turbine technology has become. But scaling up production in this arena takes years, Ferhani argued, making near-term competitive risk negligible.
A Breakup Taking Shape
The SpaceX jitters arrived as Siemens Energy pushes forward with a more consequential strategic shift. Reuters reported Tuesday that the company wants to sell the bulk of its industrial customer division to sharpen its focus on gas technology and grid infrastructure. The Transformation of Industry unit — whose spin-off was announced last Monday — is being prepared for both legal and operational independence.
Two paths are under consideration: bringing in external investors or pursuing a capital markets transaction. Either way, Siemens Energy plans to deconsolidate the unit while retaining a meaningful minority stake. The company frames the move as a way to give the division greater entrepreneurial flexibility and independent growth prospects for industrial energy solutions.
The market's response has been muted at best. The structural overhaul appears to be unsettling investors more than convincing them, even though the logic is straightforward: shedding a lower-margin business would free up capital for gas technology and grid infrastructure — precisely the areas benefiting from surging demand for grid upgrades and data center power.
Record Quarter Complicates the Picture
What makes the current share price weakness curious is the operational backdrop. Siemens Energy is performing at levels rarely seen in its history.
In the third quarter of fiscal 2026, order intake hit an all-time high of €17.9 billion. The order backlog swelled to €162 billion, while comparable revenue rose 18.5 percent to €11.4 billion. Profit before special items nearly tripled to €1.62 billion.
Perhaps most striking: Siemens Gamesa, the wind power subsidiary that has been a persistent drag, posted its first positive quarterly result since fiscal 2022. Management confirmed its full-year guidance for 2026, calling for comparable revenue growth of 14 to 16 percent and a margin before special items of 10 to 12 percent.
That guidance had already been raised in May following strong first-half numbers, when revenue stood at €10.29 billion and net profit at €835 million.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
Capital Discipline Meets Strategic Uncertainty
The restructuring talk comes on the heels of a completed share buyback program that signaled confidence from management. Between June 4 and August 14, 2026, Siemens Energy repurchased 6,467,098 of its own shares — 0.751 percent of share capital — at an average price of €154.63 apiece. The total outlay approached €1 billion. In the final reporting week alone, from August 10 to 16, the company acquired 472,203 shares at weighted average prices ranging from roughly €157 to €164.
That buyback price now sits well above the current trading level, underscoring how far sentiment has shifted in a matter of weeks.
What Investors Are Really Waiting For
The analyst community remains firmly constructive. Both JPMorgan's €245 target and Jefferies' €215 target imply substantial upside from current levels, signaling confidence in the fundamental trajectory despite the near-term noise.
For shareholders, the open questions are twofold. Will SpaceX actually emerge as a meaningful competitor in the gas turbine market — or, as analysts expect, will its plans take years to gain operational substance? And at what terms will Siemens Energy divest its industrial businesses, and how will its retained minority stake shape the future balance sheet?
The company has yet to confirm any details on buyers, pricing or timing for the divestment. The next concrete data points should arrive with fourth-quarter results, expected in November. Until then, the stock appears destined to remain hostage to headlines from two very different fronts: Musk's manufacturing ambitions and the slow, deliberate work of corporate restructuring.
Ad
Siemens Energy Stock: New Analysis - 2 September
Fresh Siemens Energy information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
