In Frankfurt, Siemens Energy shares surge following an upward revision of its targets
The group is targeting a compound annual growth rate (CAGR) in revenue of between 12 per cent and 14 per cent up to the 2030 financial year, and a profit margin of between 20 per cent and 22 per cent by the end of that period
(Il Sole 24 Ore Radiocor) - Siemens Energy shares surged in Frankfurt after the company revised its targets upwards for the next four years, aiming for sales growth and a significant increase in profitability. Shares in the German group, which specialises in equipment for the energy sector, rose by around eight points after closing the 2026 financial year with record results. Prior to the rise, the share price had remained largely stable since the start of the year.
Buying in the share came after Siemens Energy said it was targeting a compound annual growth rate (CAGR) in revenue (CAGR) of between 12% and 14% up to the 2030 financial year and a profit margin, excluding one-off items, of between 20% and 22% by the end of that period. This compares with the 12.4 per cent margin recorded in the financial year ending 30 September.
“Siemens Energy’s growth prospects continue to outshine the rest of the sector ,” wrote J.P. Morgan analysts in a note. The company is benefiting from growing demand linked to data centres and from investment in the electrification of the grid sector. Both the guidance for 2027 and that for 2030 exceed market expectations.
The company has also announced a further share buyback programme of up to €9 billion by 2030, which is in addition to the buyback programme currently underway, worth up to €6 billion. In the fourth fiscal quarter, net profit jumped to €1.36 billion, compared with €236 million in the same period of the previous year, whilst profit before exceptional items more than tripled. The company benefited from record quarterly revenue and an increase in orders. The order book also reached a new all-time high, standing at €164 billion at the end of the financial year.
