Siemens Energy Posts Record EUR 44bn Revenue, Targets 20-22% Margin by 2030

Siemens Energy reported record fiscal 2026 revenue of EUR 44 billion, up 15%, and net income of EUR 4.129 billion, while its order backlog reached EUR 164 billion. The company expanded its share buyback program to as much as EUR 15 billion and set a 2030 profit margin target of 20% to 22% before special items, roughly eight points above this year's level.

The profit margin before special items (a measure excluding one-off charges) rose to 12.4% for the year, more than double the prior-year figure. Pre-tax free cash flow came in at EUR 8.8 billion. Orders climbed about 18% to more than EUR 68 billion.

"We met or we exceeded our targets," Chief Executive Officer Christian Bruch said. He added that the company plans to expand capacity and increase margins in the coming years.

What does the new guidance mean for fiscal 2027 and beyond?

For fiscal 2027, Siemens Energy expects comparable revenue growth and a profit margin before special items of 14% to 16%. It forecasts net income of about EUR 5 billion and free cash flow of EUR 10 billion.

By 2030, the company targets annual revenue growth of 12% to 14%. Gas Services and Grid Technologies are expected to be the largest contributors, with margin targets of 25% to 27% and 24% to 26% respectively.

CFO Maria Ferraro said about 85% of the revenue expected for fiscal 2027 was already represented in the order backlog. The backlog provides visibility into later years, she noted, although that percentage declines further out.

How much cash is going back to shareholders?

The board expanded the share buyback authorization by up to EUR 9 billion, bringing the total program to as much as EUR 15 billion. Siemens Energy repurchased EUR 3.1 billion of shares in fiscal 2026 and will propose a dividend of EUR 2.30 per share at its 2027 annual meeting — more than triple the EUR 0.70 paid the previous year.

Ferraro said the company anticipates approximately EUR 25 billion in shareholder returns from buybacks and dividends through 2030. Capital spending is expected to average about EUR 2 billion a year over that period.

Which segments drove the numbers?

• Gas Services: orders rose 46%, revenue increased 20%.
• Grid Technologies: revenue grew 26%, orders increased 15%.
• Siemens Gamesa (the wind business): broke even for the full year after two consecutive profitable quarters, posting a 0.1% profit margin and 7% revenue growth, though free cash flow remained negative.

The company expects the wind business to generate positive free cash flow in fiscal 2028. Bruch attributed the turnaround to cost reductions, improvements in turbine quality and availability, stronger service margins and higher factory productivity. Siemens Energy is targeting a Siemens Gamesa margin of 8% to 10% in 2030.

Bruch nevertheless cautioned that offshore wind projects need final investment decisions to prevent gaps in factory and supply-chain workloads after 2028. He expects offshore orders to increase in 2027 but called for faster action on projects in Germany, including clarity on grid-connection risks.

Asked about U.S. data-center demand following the midterm elections, Bruch said he saw no negative effect on Siemens Energy's orders. The company holds EUR 15 billion of data-center-related gas and grid business in its backlog, just under 10% of the total.

What happens to Transformation of Industry and the Omterra rebrand?

Siemens Energy is working to make its Transformation of Industry business operationally and legally independent and hopes to begin talks with potential investors by spring 2027. Bruch said full functional independence was unlikely before 2028.

The strategic aim is to sell a majority stake while retaining a significant minority interest. Bruch said a stake of around 40% could be appropriate, though no final decision has been made. Financial and strategic investors are both possible, he said, and an initial public offering has not been ruled out. The business employs about 17,000 people.

The company also plans to bring Siemens Energy and Siemens Gamesa together under the Omterra brand because it cannot use the Siemens name beyond 2030. The change will be introduced gradually and could take about 1.5 years to complete, Bruch said.

Siemens Energy AG operates as an energy technology company worldwide through four segments: Gas Services, Grid Technologies, Transformation of Industry and Siemens Gamesa. Its portfolio spans gas and steam turbines, generators, heat pumps, high-voltage direct current transmission systems, offshore windfarm grid connections, transformers, substations, switchgears, digital grid solutions and storage.