Siemens Energy (ENR) Pre-close call summary

Executive summary

• Recap of prior guidance, market context, and key messages from Capital Market Day, including demand, pricing, backlog margin expansion, and updated guidance for 2026 and 2028.

• Q1 2026 results to be published on February 11, 2026, with a silent period starting December 19.

• Focus on capacity expansion, seasonality, tariffs, and recent credit rating upgrades.

Trading performance and revenue trends

• Electricity demand is in a structural upswing, expected to rise 50% over the next decade and double by 2050, driven by electrification and AI/data center loads.

• Gas turbine market remains robust, with 194 turbines sold in FY25 (vs. 100 prior year) and 78 GW new units backlog.

• Grid Technologies backlog doubled in two years to €42 billion, with lead times for large transformers now around five years.

• Group backlog at €138 billion as of September 30, up 42% over recent years, covering 85% of FY26.

Profitability and margins

• Gas Services new units margin improved by 5pp, service by 1pp in FY25; Grid Technologies backlog margin up 3pp in FY25 and 9pp over three years.

• FY26 targets: revenue growth 11%-13%, profit margin before special items 9%-11%, net income €3-4 billion, free cash flow €4-5 billion.

• By business: Gas Services targets 16%-18% revenue growth, 14%-16% margin; Grid 19%-21% growth, 16%-18% margin; Transformation of Industry 5%-7% growth, 11%-13% margin; Siemens Gamesa 1%-3% growth, break-even.

• FY28 group guidance: low teens CAGR revenue, 14%-16% margin, with significant margin uplifts across all business areas.