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1. Company Snapshot

1.a. Company Description

Siemens Energy AG operates as an energy technology company worldwide.It operates in two segments, Gas and Power; and Siemens Gamesa Renewable Energy.The company provides gas and steam turbines, generators, gas engines, instrumentation and controls, and electrical systems, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and transformers, air and gas-insulated switchgears, AC transmission systems, offshore windfarm grid connections, high voltage direct current transmission systems, high voltage substations, digital solutions and components, and other products.


It also offers rotating equipment that includes industrial and aero-derivative gas turbines, turbo- and reciprocating compressors, power generation products, and compression trains and modules, as well as solutions in the fields of electrification, automation and digitization, plant safety, plant security, and water treatment.In addition, the company develops technologies in the fields of decarbonized energy and storage systems.Further, it offers onshore wind turbine design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms.


The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers.Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

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1.b. Last Insights on ENR

Siemens Energy's recent performance was driven by strong earnings, with a 15% revenue increase and a record order backlog. The company's optimistic outlook for fiscal 2026, forecasting 11-13% comparable revenue growth and net income between $3-4 billion, also boosted investor confidence. Additionally, a €10 billion shareholder return plan, including a €6 billion buyback, was announced, signaling strong demand for gas turbines and improving profitability in its grid business. Bank of America analysts have a Buy rating on the stock with a €150 price target.

1.c. Company Highlights

2. Siemens Energy's Record Fiscal Year 2025: A Strong Foundation for Future Growth

Siemens Energy reported a record fiscal year 2025, with revenue reaching almost €40 billion, a 40% increase since its listing in 2020. The company's profit margin before special items improved significantly, by 350 basis points since its listing and 1,500 basis points since fiscal year 2023. In Q4, revenue reached an all-time high of €10.4 billion, driven by strong demand in Gas Services and Grid Technology, with a profit before special items of €471 million, significantly above the negative €83 million in the prior year's quarter. The actual EPS came out at €0.706, beating estimates at €0.4337.

Publication Date: Nov -15

📋 Highlights
  • Record Revenue Growth:: FY2025 revenue reached €40 billion, up 40% since 2020 listing, with Q4 revenue hitting €10.4 billion (+9.7% YoY).
  • Profit Margin Expansion:: Pre-special items profit margin improved 1,500 bps since FY2023 to 8.1% in FY2025, with Q4 profit at €471 million vs. -€83 million prior year.
  • Strong Free Cash Flow:: Generated €2.4 billion in FY2025 free cash flow, including €1.3 billion in Q4, driven by operational efficiency.
  • Order Backlog Surge:: Backlog rose 75% to €138 billion, with a book-to-bill ratio of 1.51, fueled by 94% growth in Gas Services orders.
  • Ambitious 2026–2028 Targets:: Aims for 14–16% profit margin by FY2028 (up 400 bps from current guidance) and 11–13% revenue growth in FY2026.

Segmental Performance

The company's segments performed well, with Grid Technologies having a record year, with Q4 orders of $6.9 billion, up 31% year-over-year, and revenue growing 19% to $3.1 billion. Transformation of Industry also had a record year, with Q4 revenue growing 20% to $1.6 billion. Siemens Gamesa finished fiscal year '25 in line with expectations, despite headwinds from tariffs.

Guidance and Outlook

Siemens Energy has set ambitious targets for fiscal year 2026, with a profit margin before special items of 9-11% and revenue growth between 11-13%. For fiscal year 2028, the company aims for a low teens percentage range revenue growth and a profit margin before special items of 14-16%. The guidance for next year assumes some headwinds but expresses confidence in handling them.

Valuation Metrics

With a P/E Ratio of 100.48 and an EV/EBITDA of 21.58, the market is pricing in high expectations for Siemens Energy. The company's ROE is 9.8%, and ROIC is 6.18%. The dividend yield is currently 0.0%, but the company has proposed a dividend of €0.70 per share for fiscal year 2025. Analysts estimate next year's revenue growth at 8.7%.

Operational Highlights

The company reported 11 gigawatts of new reservations in the quarter, driven by the U.S. and Saudi Arabia. The service business in Gas Services grew 15% in 2025, driven by long-term agreements and transactional business. Gas turbine pricing showed a slight improvement throughout 2025. Christian Bruch noted that the nuclear market is a twofold business, with a service market for large turbines and Small Modular Reactors (SMRs) with Rolls-Royce, a long-term project expected to realize around 2030.

3. NewsRoom

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Macro Offshore wins 10-year contract with Siemens Energy

Dec -01

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On the Steam Side of Nuclear Energy

Dec -01

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Europe’s AI Standout Siemens Energy Nears €100 Billion Value

Nov -28

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Can Siemens Partnership Propel Oklo (OKLO) Forward in Commercializing Next-Gen Nuclear Technology?

Nov -23

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Siemens Energy's (ETR:ENR) Earnings May Just Be The Starting Point

Nov -22

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Siemens Energy rises after €6bn buyback plan amid strong demand for gas turbines

Nov -20

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Will OKLO's Siemens Agreement Strengthen Its Long-Term Story?

Nov -20

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Siemens Energy Shares Rise on Buyback

Nov -20

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.30%)

6. Segments

Gas Services

Expected Growth: 4.5%

Siemens Energy AG’s Gas Services segment growth is driven by increasing demand for natural gas, transmission and storage infrastructure development, and the need for efficient processing and transmission solutions.

Siemens Gamesa

Expected Growth: 5.4%

Siemens Gamesa’s growth driven by rising demand for renewable energy, increasing investments in offshore wind farms, and technological advancements in turbine efficiency.

Grid Technologies

Expected Growth: 5.5%

Siemens Energy AG's Grid Technologies segment is poised for growth driven by increasing demand for efficient and reliable power transmission and distribution solutions, supported by government initiatives and investments in grid modernization.

Transformation of Industry

Expected Growth: 6.3%

Siemens Energy's focus on future-proof industrial infrastructure, driven by digitalization and decarbonization, will fuel growth, leveraging its expertise in industrial automation and electrification, to decarbonize energy systems.

Reconciliation to Siemens Energy

Expected Growth: 4.4%

Siemens Energy's Reconciliation segment is driven by increasing demand for digital grid management and cybersecurity solutions, coupled with growing investments in renewable energy and grid modernization, particularly in the Asia-Pacific region.

7. Detailed Products

Gas Turbines

Siemens Energy AG offers a range of gas turbines for power generation, oil and gas, and industrial applications.

Steam Turbines

Siemens Energy AG provides steam turbines for fossil-fired, nuclear, and renewable energy applications.

Generators

Siemens Energy AG offers a range of generators for power generation, oil and gas, and industrial applications.

Transformers

Siemens Energy AG provides transformers for power transmission and distribution, and industrial applications.

Grid Control Systems

Siemens Energy AG offers grid control systems for power transmission and distribution, and industrial applications.

Wind Turbines

Siemens Energy AG provides wind turbines for onshore and offshore wind farms.

Hydrogen Solutions

Siemens Energy AG offers hydrogen solutions for power-to-x applications, and industrial processes.

Digital Grid Applications

Siemens Energy AG provides digital grid applications for power transmission and distribution, and industrial applications.

Industrial Automation

Siemens Energy AG offers industrial automation solutions for process industries, and oil and gas industries.

8. Siemens Energy AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Siemens Energy AG is moderate due to the presence of alternative energy sources and technologies.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Siemens Energy AG's products and services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers for raw materials and components, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the energy industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.99%
Debt Cost 4.46%
Equity Weight 64.01%
Equity Cost 13.79%
WACC 10.43%
Leverage 56.23%

11. Quality Control: Siemens Energy AG passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sandvik

A-Score: 5.6/10

Value: 3.1

Growth: 4.9

Quality: 7.1

Yield: 3.8

Momentum: 6.5

Volatility: 8.0

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Siemens

A-Score: 5.5/10

Value: 3.6

Growth: 5.0

Quality: 5.6

Yield: 5.0

Momentum: 7.5

Volatility: 6.3

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Eaton

A-Score: 4.5/10

Value: 0.7

Growth: 5.9

Quality: 6.9

Yield: 2.5

Momentum: 6.0

Volatility: 5.0

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KONE

A-Score: 4.3/10

Value: 1.8

Growth: 3.3

Quality: 6.4

Yield: 5.6

Momentum: 6.0

Volatility: 2.7

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Vestas Wind Systems

A-Score: 3.9/10

Value: 4.2

Growth: 7.6

Quality: 4.9

Yield: 1.2

Momentum: 4.0

Volatility: 1.3

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Siemens Energy

A-Score: 3.7/10

Value: 1.5

Growth: 4.6

Quality: 4.6

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

117.05$

Current Price

117.05$

Potential

-0.00%

Expected Cash-Flows