Siemens Energy Accelerates Buyback to €3bn After Record Cash Haul, but a Steep KGV and Gamesa Risk Keep a Lid on Shares
18.05.2026 - 12:13:10 | boerse-global.de
The market gave a decidedly cool reception to Siemens Energy’s latest quarterly numbers. Last week the stock slid 5.13% to close at €169.18 on Friday, before bouncing 1.71% to €172.08 on Monday. Over twelve months the shares have more than doubled, up 116.34%, and year-to-date they have gained 40.13%. Yet after such a run, even a set of headline?grabbing results was not enough to spark fresh buying.
The decision to accelerate the share buyback programme speaks to management’s confidence in the cash?generating power of the business. Siemens Energy now plans to repurchase up to €3bn of its own stock in the current fiscal year, up from the previous ceiling of €2bn. The overall framework through 2028 remains unchanged at €6bn, meaning the company is pulling forward returns without expanding the total envelope. Including the dividend paid in March, shareholders are set to receive roughly €3.6bn this year.
That cash?generation capacity was on full display in the second quarter. Free cash flow before taxes jumped 42% to €1.975bn, compared with €1.390bn a year earlier. Higher profits and a wave of customer advances from the surging order book provided the thrust. The order intake reached €17.7bn, up 29.5% year?on?year and well above the analyst consensus of €15.6bn, lifting the order backlog to a record €154bn. Revenue on a comparable basis grew 8.9% to €10.3bn, while net profit came in at €835mn.
The strong operating momentum allowed Siemens Energy to raise its full?year guidance. The company now expects comparable revenue growth of 14% to 16%, an adjusted profit margin of 10% to 12%, net profit of around €4bn, and free cash flow before taxes of roughly €8bn. According to UBS, that cash?flow forecast materially exceeds previous market expectations. The bank pointed to sustained demand for gas turbines, grid technology and infrastructure linked to artificial intelligence — a theme that is increasingly visible in the order mix. Around one in four gas turbines sold in the quarter went to data?centre customers.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Meanwhile, the wind division Siemens Gamesa continues to be the most closely watched variable. The troubled subsidiary reduced its operating loss before special items to €44mn, from €249mn in the same period last year. Management is targeting break?even for the full fiscal year. Should Gamesa stabilise in the second half, a key valuation discount on the stock could narrow. Any renewed setbacks, however, would quickly test the elevated expectations baked into the share price.
Siemens Energy is also investing for the long term, particularly in North America. Around $1bn is being allocated to new capacity, including a factory for high?voltage switchgear in Mississippi. That investment is a direct bet on the grid?modernisation cycle driven by AI and electrification.
Yet for all the good news, the valuation leaves little room for error. On a 2026 earnings basis, the stock trades at a price?to?earnings ratio of 42.73. Based on the reported net profit for fiscal 2025, the multiple is even higher at current levels. Investors are now looking to two critical milestones: a continued reduction in Gamesa losses and evidence that the record order backlog is converting into margin at a rate that justifies the premium.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
Siemens Energy is scheduled to report third?quarter results on 5 August 2026. Until then, the buyback acceleration provides a tidy floor for the investment story, but it cannot substitute for sustained operational proof.
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