Siemens Energy has collected two major contracts in as many days – a North Sea grid connection and a 2.6‑gigawatt gas‑turbine order in Oman – yet the shares are sliding, caught between a deteriorating macro backdrop and a fresh downgrade that questions how long the current cycle can last. The stock changed hands at €153.28 on Friday, down 2.08% on the day and 8.70% over the past seven days, leaving it 21.61% below the 52‑week high of €195.54 reached on 24 April 2026.
A consortium comprising Siemens Energy and Neptun Smulders Offshore Renewables won the “North Sea Connector 2” project from the transmission system operator 50Hertz. The contract covers an offshore converter system that will feed wind power from the sea into the German grid. The facility is scheduled to begin commercial operation by the end of 2034 and will secure or create more than 500 long‑term jobs in Mecklenburg‑Vorpommern. Siemens Energy will manufacture core components such as transformers and converters at its sites in Nuremberg and Berlin, keeping roughly 95% of the value addition within Germany.
On the same day, the industrial group announced it would supply gas and steam turbines as well as generators for two power‑plant projects in the Sultanate of Oman named Misfah and Duqm, with a combined capacity of nearly 2.6 GW. Both installations are designed to run on hydrogen as well, supporting the country’s decarbonisation ambitions. The contract also includes long‑term service agreements, a recurring‑revenue stream that investors typically value for its ability to smooth out swings in new‑equipment sales.
Despite the order flow, Barclays analyst Vlad Sergievskii downgraded Siemens Energy from Equal Weight to Underweight. He raised his price target to €130 from €110, but that figure remains well below the current share price. Sergievskii argues that the gas‑turbine business has reached its cyclical zenith. While he expects a record free cash flow of roughly €7.62 billion in the 2026 fiscal year, he warns that demand will normalise thereafter. Barclays also points to the 50 GW of orders Siemens Energy has accumulated, a backlog that already exceeds the long‑run average of global demand, casting doubt on whether such a pace can be sustained.
Should investors sell immediately? Or is it worth buying Siemens Energy?
Broader geopolitical strains are compounding the pressure on the stock. The ongoing conflict in Iran has pushed oil prices higher and soured risk appetite across equity markets, particularly for heavyweights in the German DAX. Siemens Energy is proving more sensitive to the volatility than the index, which showed little movement on Friday. A parliamentary decision in Berlin to approve the construction of 11 GW of new gas‑fired power plants by 2031 – all of them designed to eventually run on hydrogen – does provide a long‑term tailwind for the company, which is a leading supplier of gas turbines. But that hasn’t been enough to offset the short‑term selling.
Technically, the shares are still holding above the 200‑day moving average of €142.73, a level that has served as a support during the recent correction. With the stock currently around 7% above that line, the long‑term uptrend remains intact. The 12‑month gain stands at 70.35%, and year‑to‑date the stock has added 24.82%, bolstered by earlier rallies. Still, the correction over the past week has brought the relative strength index to 43.5, a neutral‑to‑slightly‑weak reading.
Siemens Energy will release its third‑quarter results on 5 August 2026. That report will offer the next concrete test of whether the current order momentum can translate into margin expansion or whether Barclays’ peak‑cycle thesis proves prescient.
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