Siemens Energy (ENR) Investor presentation summary

Financial performance and targets

• FY25 profit margin before special items reached 6.0%, with revenues at €39.1bn and order backlog at €138bn, surpassing prior commitments.

• Backlog margin increased by 220 bps, and S&P credit rating outlook improved from negative to positive.

• Free cash flow (pre-tax) for FY25 was €4.7bn, with FY26-28 targets of €4-5bn annually.

• Profit margin before special items is targeted to rise to 14-16% by FY28, with sustained EPS growth driven by high-margin orders and operational excellence.

• Up to €10bn is planned for shareholder returns through dividends and share buybacks until FY28.

Market environment and growth drivers

• Global electricity demand grew twice as fast as total energy demand in 2025, with a projected 45% increase by 2035.

• World investment in power generation and grids reached ~€1.3tn in 2025.

• Grid investments and electrification are key drivers, with >50% of grids in advanced economies to be replaced by 2040.

• Gas turbine orders doubled to 194 units in FY25, with a secured new unit backlog of ~78 GW.

• Grid Technologies backlog quadrupled since FY22, with margin rising 9 pp.

Strategic priorities and operational improvements

• Focus on achieving #1 or #2 market positions and top quartile financial performance in each business.

• Continuous reduction of overhead cost intensity and optimization of operating model.

• Robust supply chains and financial resilience are prioritized to respond to external threats.

• Dynamic capacity expansion in gas turbines, with capacity sold out until FY28.

• Investments of ~€2bn planned to double transformer capacity by FY28.