Siemens Energy’s Two-Front Battle: Grid Orders Surge While Gamesa’s Cash Drain Deepens
30.05.2026 - 13:21:33 | boerse-global.de
For Siemens Energy, the market is watching a company pulled in opposite directions. One division—grid technology—is running so hot that its order book is already 93% filled for the second half of the fiscal year, while the other—Siemens Gamesa—is still bleeding cash and pushing back its promised turnaround. The tug-of-war between record demand and a lingering problem child is testing investor confidence after a 92% rally over the past twelve months.
The half-year report released on 12 May 2026 underscored the grid boom. Orders surged to a company record of €17.7bn, a 29.5% jump from the prior-year quarter and well above the €15.6bn consensus estimate. The order backlog swelled to €154bn, meaning that for every euro Siemens Energy earned in revenue, nearly two euros of new business came through the door. Revenue in the second quarter hit roughly €10.3bn, and earnings per share doubled to €0.89.
The grid-technology business is the clear star. Management now expects 25% to 27% revenue growth for the division this year, with margins of 18% to 20%. In the United States, orders nearly doubled to €6.94bn in the second quarter, while revenue there climbed 45.7% to €2.75bn. To keep up with demand, the group plans to invest €2bn through 2028 in a global network of transformer and switchgear factories.
Yet Gamesa remains a stubborn drag. The wind-turbine unit reported a negative free cash flow of €654m in the second quarter, almost double the €333m deficit a year earlier—a step backward just as management had promised a recovery. Chief Executive Christian Bruch now expects the division to break even only in the fourth quarter, not the third, and has made that target a condition for the full-year outlook. Should Gamesa miss, the guidance could be at risk.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The disparity leaves the stock in a cautious mood. Shares closed at €162.60 on Friday, down 6.4% over the week and 13.5% below the 24 April high of €188.00. The 50-day moving average sits at €167.35, while the relative strength index of 53.1 suggests a neutral, not overheated, market after the long run-up.
Analysts remain split on what the future holds. Barclays’ Vladimir Sergievskiy rates the stock a ‘hold’ with a target of €110, arguing the valuation already prices in the best business cycle of a generation with no end in sight. J.P. Morgan’s Phil Buller, by contrast, raised his price target to €225 on 13 May and reaffirmed it as recently as 28 May, keeping an ‘overweight’ stance on improving long-term prospects.
Siemens Energy has raised its full-year guidance for the second consecutive time. It now forecasts revenue growth of 14% to 16%, an operating margin of 10% to 12% before special items, and net profit of about €4bn. The free cash flow forecast was doubled to €8bn. To reinforce confidence, the group increased its share buyback programme for the current fiscal year to as much as €3bn, up from the originally planned €6bn through 2028.
Siemens Energy at a turning point? This analysis reveals what investors need to know now.
The next major checkpoint comes on 5 August 2026, when the third-quarter report will reveal whether the record order momentum can persist—and whether Gamesa is finally on track to deliver the operational turnaround that has so far remained elusive. Before then, the European Central Bank’s interest-rate decision on 11 June will be closely watched, as lower capital costs could provide a valuation tailwind for the long-cycle infrastructure contracts that underpin Siemens Energy’s bulging order book.
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