Siemens Energy is executing a powerful reset on capital markets, backed by a record-breaking operational performance. The company’s resurgence is marked by three simultaneous developments: inclusion in a major European index, a substantial share buyback initiative, and the reinstatement of shareholder dividends.
Record Quarter Fuels Capital Return
The financial foundation for these moves was laid by an exceptionally strong first quarter. Net profit nearly tripled to 746 million euros. New orders surged by 33.9% to 17.6 billion euros, pushing the order backlog to a historic high of 146 billion euros.
A remarkable boom in gas turbine demand was a primary driver. The Gas Services segment booked orders for 102 turbines in the quarter alone—a quarterly record. This figure surpasses half of the 194 turbines sold in the entire 2025 fiscal year. Approximately 40% of these orders originated in the United States, where the expansion of data centers for artificial intelligence is massively increasing demand for stable power generation. The Grid Technologies unit also posted robust growth, with revenue increasing by 26.9%, while Gas Services revenue advanced by 13.9%.
Index Inclusion and Share Repurchases
Concurrently, Siemens Energy is benefiting from significant structural support. Effective March 23, the company will join the Stoxx Europe 50 index, replacing spirits group Diageo. This fast-track entry, triggered by its substantially increased market capitalization, will compel index-tracking funds and ETFs to purchase the stock, creating a sustained source of demand.
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In parallel, a share buyback program of up to 2 billion euros commenced on March 4 and is scheduled for completion by the end of September. Looking further ahead, the company’s plan extends to repurchasing shares totaling 6 billion euros by the end of fiscal year 2028.
Wind Unit Progress and Dividend Return
While the core business thrives, the turnaround at wind subsidiary Siemens Gamesa continues. Its operational loss narrowed significantly to 46 million euros, down from 374 million euros in the same quarter last year. Major shareholders, including DWS, Deka Investment, and Union Investment, have expressed support for a gradual recovery of the unit, opposing a rapid spin-off.
Shareholders have approved a dividend of 0.70 euros per share, marking the first payout since 2022. The company’s annual targets for 2026 remain unchanged: revenue growth of 11 to 13%, a profit margin before special items of 9 to 11%, and a net income between 3 and 4 billion euros.
The upcoming results for the second quarter, due on May 12, will be closely watched for signs that the gas turbine momentum is sustainable and whether Siemens Gamesa continues its trajectory toward breaking even.
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