The stark divergence between Siemens Energy’s operational firepower and its share price has caught the attention of investors. While the group’s order book swells to record levels and management lifted full-year guidance, the stock has shed nearly 15% over the past month. To steady the ship, the company is leaning heavily on its share buyback programme, with a second tranche now underway.
That tranche, launched in early June, targets repurchases of up to €1 billion by the end of September, equivalent to a maximum of 57 million ordinary shares. The treasury stock is earmarked for employee programmes or cancellation. An appointed bank runs the daily purchases independently, bound by a strict price ceiling: the buyback price cannot exceed the Xetra opening price by more than 10%. Last month, Siemens Energy bought back more than 237,000 shares at a cost of roughly €37.5 million.
The capital for these repurchases comes from a business firing on all cylinders. In May, management sharply raised its net profit guidance for the current fiscal year to around €4 billion. The grid technology division is the standout performer, posting double-digit growth rates and high margins. Meanwhile, CEO Christian Bruch speaks of a “super-cycle” in gas turbines, driven by the insatiable energy demands of AI data centres. A quarter of all new gas-services orders now come from that sector, and customers are facing multi-year lead times.
Should investors sell immediately? Or is it worth buying Siemens Energy?
The order backlog has ballooned to a record €154 billion, with €17.7 billion in new orders landed in the second quarter alone — well above market expectations. Grid Technologies is also investing heavily to expand transformer capacity, with €2.3 billion earmarked for new factories by 2028. These operational strengths are partly offsetting persistent concerns about the struggling wind power subsidiary Gamesa, though analysts note that high margins in grid tech are more than compensating for those losses.
On the charts, the stock is caught in a tug-of-war. At the close of last week, Siemens Energy shares traded at €151.34, marginally in positive territory on the day but well below the 50-day moving average of €168.65. That level now represents a key resistance; a decisive break above it would brighten the technical picture. On the downside, the €150 mark has held firm, and the stock remains comfortably above its 200-day average of €136.64, offering a broader support base.
Analysts remain broadly bullish. JPMorgan reaffirmed a €225 price target, while Deutsche Bank and Berenberg both see the stock at €200. The consensus view is that as long as the €150 level continues to hold, the longer-term upward trend stays intact. For now, the buyback programme is functioning as a critical safety net, buying time for the market to fully price in the strength of Siemens Energy’s underlying business.
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