Siemens Energy is signaling a return to stability after a challenging period, with shareholders voting to reintroduce dividend payments. This move, approved at the recent annual general meeting, marks a significant milestone for the company as it continues to navigate the ongoing complexities within its wind power division, Siemens Gamesa.
A Vote of Confidence and a Return to Distributions
The company’s shareholders overwhelmingly endorsed a dividend of €0.70 per share for the 2025 fiscal year, with approval reaching 99.99%. This distribution, the first since 2022, serves as a tangible indicator of the firm’s improved financial health. The leadership team received a strong mandate as well, with both the management and supervisory boards being discharged by a large majority.
Supervisory Board Chairman Joe Kaeser highlighted that 2025 was the most successful financial year since the company’s spin-off in 2020. This assessment is supported by a net profit of €1.685 billion.
Strategic Focus on Organic Growth and Supply Chain Security
Rather than pursuing large-scale acquisitions, CEO Christian Bruch is steering the company’s strategy toward smaller, targeted purchases. The focus is on securing supply chains and expanding the grid technology business, with a particular emphasis on digitalization.
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Operationally, Siemens Energy is experiencing strong demand in key sectors. The company’s order backlog has surged to a record €146 billion. Gas turbines and grid technologies are especially sought-after, partly driven by the rising energy needs of AI data centers. In a related development, a multi-billion dollar energy project in Texas, which will utilize the company’s gas turbines, has secured a crucial regulatory approval.
The Persistent Challenge of Siemens Gamesa
Despite the positive news on dividends and orders, the wind power subsidiary Siemens Gamesa remains a critical test for the group’s future trajectory. CEO Bruch has set a clear expectation for the division: it must chart a credible path to double-digit profit margins by 2028. The restructuring of this currently loss-making unit continues to be a top priority for management.
Market Performance and Valuation Considerations
The stock has seen substantial gains in recent months. Shares closed at €164.75 on Thursday, sitting just 2.6% below the 52-week high of €169.20. Over a 12-month period, the share price has advanced by 201.08%. However, a Relative Strength Index (RSI) reading of 85.4 suggests the stock may be overbought in the short term.
In summary, Siemens Energy’s decision to resume dividend payments underscores a year of robust profitability in 2025. The coming years will ultimately determine whether the Siemens Gamesa division can successfully deliver on its mandated turnaround and meet its 2028 profitability targets.
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