Siemens Energy Beats Q3 Estimates on Record Orders, Raises Margin Outlook

Siemens Energy AG (ETR:ENR1n) reported fiscal third-quarter earnings that surpassed analyst expectations, fueled by record-high orders and strong demand for its power grid technology. The company also signaled increased confidence in its profitability, expecting its full-year margin to reach the upper end of its guided range.

Earnings Beat Expectations

For the quarter ending June 30, Siemens Energy posted results that exceeded market consensus, according to figures from S&P Global Visible Alpha. The strong performance was underpinned by a surge in demand, particularly from the United States.

• Net Income: Rose to €1.19 billion, a significant increase from €697 million in the same period last year and beating the consensus estimate of €983 million.
• Revenue: Increased 17.5% year-over-year to €11.45 billion, ahead of the €11.24 billion forecast.
• Orders: Reached a record €17.93 billion for the quarter, boosting the company's total order backlog to a new high of €162 billion.

Divisional Strength and Gamesa Turnaround

The company's growth was broad-based. The Gas Services division achieved a record order intake, partly supported by projects related to the expansion of data centers. Meanwhile, the Grid Technologies unit continued to benefit from high demand for transformers.

Ad

A significant milestone was the return to profitability for the Siemens Gamesa wind turbine business. The unit recorded a profit of €56 million, its first since 2022, compared to a loss of €425 million a year earlier. The company attributed the turnaround to improved productivity and cost efficiencies.

Updated Full-Year Guidance

Siemens Energy confirmed its fiscal 2026 guidance, which it had previously raised after the first half of the year. The company continues to forecast comparable revenue growth of 14% to 16% and a net income of around €4 billion.

However, the firm updated its margin expectations, stating it now anticipates its profit margin before special items will land toward the upper end of its 10% to 12% guided range. The forecast for free cash flow before tax remains at approximately €8 billion.