Siemens Gamesa Turns Profitable as Siemens Energy Maps Out Its Next Chapter
Published on 09/26/2026 at 04:22 | Editorial boerse-global.de
For the first time since 2022, Siemens Gamesa has posted an operating profit. The Spanish wind unit delivered positive earnings in the third quarter of fiscal 2026, according to media reports — a milestone that shifts the spotlight from crisis management to the durability of Siemens Energy's broader turnaround.
That shift matters because the wind division spent years as the drag on an otherwise thriving business. Turbine defects, hefty warranty costs and project delays repeatedly pushed the subsidiary deep into the red, while the conventional gas turbine and power transmission segments kept delivering strong growth. Whether the latest quarterly result stems from one-off effects or signals the start of a sustainably positive margin is now the central question for the stock.
A record backlog meets a fragile recovery
Media coverage links the improved performance to a record order backlog at group level, reinforced by a billion-euro contract from Canada. If the wind unit can execute future projects at solid margins, the single largest burden of recent years disappears. If it cannot, the quarterly profit amounts to little more than a temporary peak.
The shares ended Friday's session at EUR 144.06. That leaves the DAX-listed stock up 20 percent since the start of the year, yet still 26 percent below its 52-week high. Investors must weigh how much optimism is already priced in — the restructuring is far from finished, but confidence in management's ability to steer the process is building.
Fiscal budgets, not algorithms, set the pace
The stock's recent turbulence has little to do with the company's day-to-day operations. When voices from the technology sector recently called for a slowdown in AI development, sentiment flipped abruptly, and a sector-wide selloff in mid-September swept through energy and AI infrastructure names. Siemens Energy took a hit even though the trigger lay nowhere near its order book.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Berenberg analyst Chris Armstrong addressed exactly this disconnect. He kept his "Buy" rating and EUR 205 price target, arguing that the company is a structural beneficiary of government spending. Where states finance the modernization of transmission grids and the security of supply, long-term budget decisions govern demand — short-term swings in stock market sentiment barely register.
The real driver behind the global energy overhaul does not sit in Silicon Valley's development departments. It sits in finance ministries allocating vast sums to replace aging power networks. Transmission lines and switchgear are planned, approved and built over years, and the demand for grid infrastructure flows from the fundamental reshaping of generation capacity — a trend that outlasts fashionable market themes.
Buyback and a shrinking Siemens stake
Capital measures are lending additional support to the share price. The group approved a buyback of up to EUR 2 billion and a maximum of 50,000,000 shares, executed via Xetra and multilateral trading venues. The program serves employee share plans and the retirement of shares, reducing the supply available in the market and strengthening earnings per share.
At the same time, Siemens Energy continues to loosen its ties to former parent Siemens AG. The latter's subsidiary, Siemens Beteiligungen Inland GmbH, fell below the 5 percent reporting threshold on September 8 and now holds 4.98 percent of voting rights. Greater strategic independence gives the company more flexibility for its own investment decisions.
What could still go wrong
The most serious downside risk remains the wind turbine business itself. Despite the recent turnaround, the segment operates in an environment shaped by supply chain bottlenecks and complex large-scale projects. Fresh defects or delays in installing offshore facilities could quickly push Siemens Gamesa back into loss territory.
Such a setback would deal a heavy blow to capital market trust that has only just been rebuilt. Because the wind segment posted deep losses from 2022 onward, investors react with extreme sensitivity to negative surprises. Should wind fail again as an earnings pillar, the other divisions would once more have to absorb the shortfall — and under those conditions, the buyback would lose its supportive effect, leaving the valuation exposed.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
Board reshuffle ahead of the fourth quarter
On the leadership front, Pekka Lundmark was appointed to the supervisory board by the Munich district court, effective October 1, 2026. He succeeds Matthias Rebellius, who leaves the panel at his own request as of September 30, 2026. Shareholders will vote formally on the appointment in February.
The next concrete tests arrive quickly. A pre-close call for the fourth quarter of the fiscal year is scheduled for Wednesday, followed by the extended earnings conference on November 11.
As long as Siemens Gamesa holds its profitable course and the conventional segments deliver reliably, the path for a continuation of the share price recovery stays open. If earnings in the wind business tip back into negative territory, this year's gains could melt away fast. The real test for Siemens Energy will not be written by the mood swings of the technology sector — the foundations are poured from concrete, steel and government budgets.
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