Siemens Energy (LON:0SEA) used its 2026 annual general meeting in Berlin to highlight what Chairman of the Supervisory Board Joe Kaeser called one of the most successful corporate turnarounds in the DAX, while management outlined growth plans tied to electrification, grid expansion, and rising power demand from artificial intelligence and data centers.
Leadership points to record backlog and dividend return
Kaeser told shareholders the company delivered the “best year” in its history as an independent company, pointing to a high-quality order backlog of EUR 146 billion as underpinning earnings power in coming years. He said major operating segments—Gas Services, Grid Technologies, and Transformation of Industry—improved results versus a strong prior year, with double-digit revenue growth in fiscal 2025.
CEO outlines FY2025 results and FY2026 targets
CEO Christian Bruch said Siemens Energy now employs more than 100,000 people across more than 90 countries, holds nearly 19,000 patents, and operates about 50 manufacturing sites. He cited market trends including accelerating electrification of transport, heating, and industry, and power demand growth linked to AI.
Bruch reported fiscal 2025 performance included:
- Orders: nearly EUR 59 billion; year-end order backlog of EUR 138 billion (with management later referencing a record EUR 146 billion backlog)
- Revenue: more than EUR 39 billion
- Profit before special items: EUR 2.4 billion, a 6% margin
- Free cash flow: nearly EUR 4.7 billion, more than double year over year
- Net income: around EUR 1.7 billion
He added that total recordable incident rate improved by 30% from 2023 to 2025, customer Net Promoter Score was 62, and employee satisfaction rose nine points year over year. Bruch said Siemens Energy’s credit rating improved and noted the company exited the German government guarantee structure earlier than planned.
For fiscal 2026, Bruch guided to:
- Revenue growth: 11% to 13%
- Profit margin before special items: 9% to 11%
- Net income: EUR 3 billion to EUR 4 billion
- Free cash flow: EUR 4 billion to EUR 5 billion
He also reiterated medium-term targets for 2028, including low double-digit annual revenue growth and a 14% to 16% margin before special items.
Investments, U.S. expansion, and shareholder returns
Bruch said Siemens Energy is expanding manufacturing capacity to address higher demand, including for grid infrastructure and gas turbines, as well as electricity systems supporting data centers. In fiscal 2025, the company opened seven new factories and created 4,000 jobs, “many of them in Europe,” and expects to continue expansion in 2026.
He highlighted a $1 billion investment program announced for U.S. locations, including two training centers and 1,500 new U.S. jobs, describing the American electricity market as growing faster than other regions. Bruch said Siemens Energy sources 95% of grid-related purchasing volume locally where it manufactures, as part of supply-chain resilience efforts.
On capital allocation, Bruch said the company would combine dividends and buybacks, reiterating a planned share repurchase of up to EUR 6 billion by the end of fiscal 2028. He also said Siemens Energy would invest about EUR 3.5 billion in locations and R&D in 2026.
Siemens Gamesa: break-even focus and longer-term margin ambition
Both Kaeser and Bruch addressed Siemens Gamesa, saying the wind business developed “as expected” and remains under close oversight. Kaeser said management’s goal is for wind to break even during fiscal 2026, with a long-term aim of a double-digit operating margin.
In Q&A, Bruch said a 3% to 5% margin for Siemens Gamesa by 2028 is an interim goal and that the segment must demonstrate a path toward double-digit margins beyond that. He said the company is taking a selective approach to orders for the SG7.0 turbine and noted the first two SG7.0 contracts had been signed in Germany.
Governance items and voting results
The meeting also covered share capital developments and prior share buybacks. Bruch said a mandatory convertible bond that matured in September 2025 led to the allotment of 61,769,452 new shares, plus 25,750 shares issued to certain early converters. He said a share buyback program conducted between May 12 and June 26 in the last fiscal year repurchased shares worth EUR 170 million (excluding acquisition costs) to support share-based compensation and employee ownership programs.
Shareholder attendance was reported at about 66% of share capital. In voting, shareholders approved the dividend proposal, ratified the actions of executive and supervisory board members, appointed KPMG as auditor (including for sustainability reporting), approved the compensation report, and backed an adjustment to Supervisory Board remuneration. Kaeser said the remuneration adjustment was supported by benchmarking work from consultant HKP and was intended to bring pay closer to comparable DAX levels.
About Siemens Energy (LON:0SEA)
Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pumps, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and high voltage direct current transmission systems, offshore windfarm grid connections, transformers, flexible alternating current transmission systems, high voltage substations, air and gas-insulated switchgears, digital grid solutions and components, and storage solutions.
