Siemens Energy (LON:0SEA) used its fiscal 2026 second-quarter pre-close call to reiterate previously communicated guidance and highlight key market and operational themes discussed in earlier earnings calls, conferences, and roadshows. Head of Investor Relations Tobias Hang said the company will publish its second-quarter results on May 12, 2026, and noted the company’s silent period begins March 31.
Middle East: employee safety prioritized; guidance impact not seen as material
Hang said the company’s top priority in the Middle East is the safety of approximately 3,000 employees in the region, while also working to ensure continuity for customers and partners supporting energy system reliability.
From a business perspective, Hang said Siemens Energy is seeing impacts on local projects but does not see a “material direct impact” on guidance at this point. He described the primary effects as related to logistics and shipping rather than underlying demand, which could lead to project-level delays and shifts in revenue recognition and cash timing. Potential indirect effects—such as severe logistical constraints in a prolonged or high-intensity conflict or deterioration in investment sentiment—are not currently assumed in the company’s view, he said, but are being closely monitored.
Market backdrop: structural growth in power and grids
Hang said the market context remains consistent with what the company outlined at its Capital Market Day and reiterated in the fiscal first-quarter call. He characterized Siemens Energy’s end markets as “a structurally growing electricity market rather than a short-term cyclical environment,” and said the company expects an elevated gas turbine market “at least until 2035.”
On the grid side, Hang described “a once-in-a-generation investment cycle over the next 15 years,” driven by connecting renewables and replacing aging assets. He added that by 2040, around half of installed transformers will have reached retirement age. Across the portfolio, he said “demand is real and accelerating,” with the central challenge being “capacity and speed rather than appetite.”
Gas Services: sold out into fiscal 2028; pricing momentum favorable
Discussing Gas Services, Hang said first-quarter order intake of 13 gigawatts was “exceptionally strong” and broad-based across regions, customers, and applications. He cautioned that quarterly order intake will remain volatile given the large multi-train project nature of the business.
Hang said Siemens Energy expects another strong second quarter, followed by a weaker second half of fiscal 2026, reflecting timing embedded in slot reservation agreements “rather than any indication of a weakening market environment.”
- Gas turbine capacity is “sold out until fiscal year 2028,” with fiscal 2029 “filling up very quickly.”
- The company has begun seeing bookings for fiscal 2030 slots.
- By year-end, Siemens Energy expects fiscal 2029 to be “largely sold out,” with limited capacity in fiscal 2030.
Hang said signing orders beyond that timeframe will depend on supply chain capacity and the demonstrated execution capacity of EPC partners, noting that the blades and vanes supply chain remains the industry’s principal bottleneck and Siemens Energy’s “number one limiting factor.”
On pricing, Hang reiterated that the company confirmed in the first quarter that pricing momentum remains favorable, with further year-over-year margin uplift for new units expected to continue “in the foreseeable future.” He added that current slot reservation agreements are signed at higher pricing versus current orders.
On the service side, Hang said the profitability starting point is already strong and better pricing for new service contracts continues in the backlog. However, he emphasized it takes time for higher-priced service contracts to flow into the profit and loss statement, given typical inspection and outage cycles. As a result, he said the “real margin uplift from services” should become more visible toward the end of the decade or the beginning of the next, “clearly beyond fiscal year 2028.”
Grid Technologies: demand outpacing capacity; pricing plateau in Europe
Hang said the Grid Technologies market has doubled over the last three years and is continuing to grow across regions. He noted the segment’s book-to-bill has been at or above two for three consecutive years.
Globally, Hang said customers are accelerating investment in transmission capacity to integrate renewables, meet rising demand, and strengthen stability—while delivery time, not demand, remains the key constraint. Even with factory expansions underway, he said transmission demand continues to outpace industry capacity.
On pricing, Hang reiterated that pricing has “plateaued at high levels” in Europe, a message he said the company has been consistent on for five quarters. In the U.S., pricing is still moving up for certain products, particularly where shorter lead times are valued. Looking ahead, he said further margin improvement in Grid Technologies is expected to come mainly from productivity and operational excellence, including investments in automation, robotics and AI, as well as digitalization and production simplification.
Siemens Gamesa outlook, buyback, and other Q2 updates
In Siemens Gamesa, Hang pointed to “attractive auction outcomes,” including the U.K.’s Round 7, and said targets agreed at the North Sea Summit reinforced confidence that offshore wind will remain attractive in selected regions. He also said Siemens Energy secured the first orders for the SG 7.0 platform—the successor to the 5.X—in the first quarter, which he said provides evidence the turnaround strategy is translating into market traction.
Hang said the Siemens Gamesa trajectory laid out in the first quarter is unchanged: the first half is expected to be negative and the second half positive, with full-year breakeven remaining the company’s commitment. He added that offshore order intake in fiscal 2026 is expected to be “relatively muted” due to timing shifts in some offshore auctions, with some projects moving into the next fiscal year.
On capital allocation, Hang said the framework remains unchanged and reiterated a commitment of up to €6 billion of share buybacks through fiscal 2028. He said the first tranche, up to €2 billion, started March 4, and progress is published weekly on the investor relations website.
Hang also reaffirmed capital expenditure expectations for fiscal 2026 at around €2.5 billion, noting that after €347 million spent in the first quarter, capex will increase significantly over the remaining three quarters.
Finally, Hang addressed foreign exchange impacts on growth rates. He said that because Siemens Energy guides on comparable revenue growth excluding currency translation and portfolio effects, it continues to see materially higher comparable growth than nominal growth, driven mainly by U.S. dollar to euro volatility and U.S. dollar devaluation. For the second quarter, he said the company expects comparable revenue growth to be about 600 basis points higher than nominal growth at group level, compared with 460 basis points in the first quarter.
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.
