Siemens Energy’s second-quarter order intake of €17.7bn pushed the company’s backlog to a record €154bn, yet the stock ended the week at €162.60, down 6.4%. The divergence between operational momentum and market sentiment is stark: the grid division doubled its US orders to €6.94bn and lifted segment revenue by 45.7%, while the wind turbine arm Siemens Gamesa burned through €654m in free cash flow. The capital spending plan of €2bn in grid infrastructure by 2028 underscores management’s confidence in the electrification trend, but the wind unit remains a drag on the overall narrative.
Management doubled its full-year free-cash-flow target to €8bn, a signal that the grid business is expected to more than offset Gamesa’s losses. For the second half of the fiscal year 2026, 93% of planned orders are already secured, and the coverage rate for 2027 stands at 80% — providing rare visibility in a capital-intensive industry. CEO Christian Bruch has been clear that the turnaround at Gamesa will take time: the operating break-even is not expected before the fourth quarter of 2026, meaning the division will continue to consume cash for at least two more quarters.
Beyond the numbers, the company is positioning itself for the next wave of energy infrastructure. Since mid-March, capacity reservations for the German hydrogen core network have been underway, and Siemens Energy is well placed as a supplier of compression technology and electrolysis equipment through to 2030. On the technology front, the group commissioned the world’s first SF6-free 420-kV circuit breaker at the Oberhaid substation. SF6 is one of the most potent greenhouse gases used in the industry, and the pressure to phase it out is mounting — the new switchgear gives Siemens Energy a first-mover advantage. Meanwhile, German battery storage installations exceeded 2 GWh in the first quarter of 2026, a record that further boosts demand for modern switchgear and grid-control technology.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The chart suggests the recent pullback is a consolidation rather than a trend reversal. The stock now trades 21.9% above its 200-day moving average of €133.43 and 13.5% below the 52-week high of €188. The relative strength index stands at 53.1, indicating neutral territory after the earlier overheating was worked off. The 100-day moving average at €158.76 provides the first line of support, followed by the psychological €150 level. Investors should be aware of the annualised volatility of 49.6%, which could spike around the European Central Bank’s interest-rate decision on 11 June.
Analyst views are split widely, reflecting the uncertainty around Gamesa’s recovery and the sustainability of the grid boom. Barclays sees the stock at €110, while JPMorgan has a target of €225 — a spread of €115 that signals divergent opinions on how much the wind business will drag on the conglomerate. The next major catalyst is the third-quarter earnings release on 5 August, for which the consensus earnings-per-share estimate is €1.14. With the grid engine humming and the order book packed, the key question remains whether it can continue to compensate for Gamesa’s headwinds.
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