Siemens Energy soars in Frankfurt, first coupon in four years and estimates rise

(Il Sole 24 Ore Radiocor) - Siemens Energy is taking off on the Frankfurt Stock Exchange after revising its medium-term forecasts upward, on the back of growth in the last financial year that allowed the return of the dividend for the first time in four years. The energy company's share price gained more than ten points, the biggest rise in the DAX 40 index and among the best of the Stoxx Europe 600. Since the beginning of the year, the share price has risen 120% and, as the accounts documentation points out, in the 2025 financial year (ended in September), the increase was 201%.

Siemens reported that fourth-quarter sales exceeded the 10 billion mark, up 9.7% on a comparable basis to EUR 10.4 billion. The group also generated a profit of 236 million compared to a loss of 254 million in the same period last year. Pre-tax free cash flow rose to EUR 1.3 billion (+42%). Orders, on the other hand, decreased by 2.5% on a like-for-like basis to EUR 14.2 billion 'mainly due to the high comparison base at Siemens Gamesa', the Spanish wind power subsidiary. The financial year ended with revenues up 15% to 39.1 billion and a net profit of 1.68 billion (from 1.33 billion).The proposed dividend is 0.70 euro per share, amounting to a total of 50% of the net profit for the year.

"2025 has been a successful year for us," said CEO Christian Bruch, emphasising that Siemens Energy has realised "sustainable growth and significantly increased its profitability, enhancing the company's value and returning to paying a dividend for the first time in four years". Furthermore, 'in view of the positive outlook for the energy market, we are raising our medium-term targets,' the CEO added. As traders note, the group is benefiting from the growing global demand for electricity thanks to its extensive presence in both conventional power generation with gas turbines and renewable energy with its wind turbines.

Against this background, Siemens Energy now expects like-for-like sales growth of between 11% and 13% and an operating margin before extraordinary items of between 9% and 11% in 2026. Net profit is expected to be between three and four billion euro and Siemens Gamesa (which has been making heavy losses for years) is expected to break even. For the period 2025-2028, the group is now aiming for an average annual revenue growth on a comparable basis of around 13-15% (low teens), whereas previously it expected growth between high single digits and low double digits. The operating margin before extraordinary items in the financial year 2028 is now expected to be in the range of 14% to 16%, compared to the previous estimate of 10% to 12%. "The new medium-term targets are clearly positive and demonstrate the strength of the cycle," noted JPMorgan analysts.