Munich, May 12, 2026, 11:04 CEST
Siemens Energy will accelerate its share buyback, lifting repurchases planned for 2026 to as much as 3 billion euros from 2 billion euros after a 42% rise in pre-tax free cash flow, the company said on Tuesday. The total buyback program, worth up to 6 billion euros through 2028, remains unchanged.
The move matters now because it shows the order boom in power equipment is turning into cash. Siemens Energy booked record orders of 17.7 billion euros and a record backlog of 154 billion euros, helped by demand from the United States, gas services and grid technologies; German trade publication Maschinenmarkt tied the surge to electricity-hungry AI data centers.
Investors still took some money off the table. Siemens Energy shares traded lower in morning XETRA dealings, falling as much as 4.11% to 171.16 euros at one point, even as the company said it had already bought back about 1.8 billion euros of stock under the existing program.
Revenue rose 8.9% on a comparable basis to 10.3 billion euros in the second quarter. Profit before special items, the company’s adjusted profit measure, rose to 1.16 billion euros from 906 million euros a year earlier, while net income increased to 835 million euros from 501 million euros.
Chief Executive Christian Bruch said the market environment remained “very positive” despite geopolitical uncertainties, Handelsblatt reported. He said the stronger outlook showed confidence that the current trend would continue. Handelsblatt
Siemens Energy now expects comparable revenue growth of 14% to 16% for fiscal 2026, up from 11% to 13%. It also raised its profit-margin target before special items to 10% to 12% and lifted its pre-tax free cash flow forecast to about 8 billion euros from a prior range of 4 billion to 5 billion euros.
The strength was not even across the group. Gas Services orders reached 8.87 billion euros and Grid Technologies orders rose to 7.00 billion euros, while Siemens Gamesa, the wind unit that has long weighed on results, narrowed its loss before special items to 44 million euros from 249 million euros a year earlier.
The buyback has moved fast. Siemens Energy’s own disclosures showed 11.6 million shares repurchased by May for about 1.83 billion euros, with March and April accounting for most of that volume.
Analysts stayed broadly positive, though targets differed. Colin Moody at RBC kept a Buy rating and a 200-euro target, while Alasdair Leslie at Bernstein also advised buying the stock but kept his target at 150 euros.
The competitive backdrop is helping. GE Vernova, Siemens Energy’s U.S. rival in gas turbines and grid equipment, also raised forecasts recently as demand from data centers and power infrastructure rose, underlining that the cycle is not confined to one supplier.
But there is less room for error after the rally. A chunk of the cash flow reflects customer advance payments tied to high order momentum, Siemens Gamesa still needs to reach sustained break-even, and Siemens Energy’s outlook does not include charges from future legal or regulatory matters.
