Siemens Energy (ENR) Pre-close call summary

Executive summary

• Guidance for FY2026 is reaffirmed, with strong demand and robust market momentum across all business segments.

• No major operational disruptions from geopolitical events; logistics and timing are the main impacts.

• Market remains structurally supply-constrained, supporting favorable pricing and high order visibility.

• Capacity expansions are progressing, with significant increases in gas turbine and grid technology output planned.

• Cash generation and capital allocation remain strong, with upgraded free cash flow guidance and ongoing share buybacks.

Trading performance and revenue trends

• Gas turbine market demand is now expected at 110-120 GW per annum for the coming years, up from previous estimates.

• Order intake is diversified across geographies and customer types, with data centers and AI as key demand drivers.

• Grid Technologies sees strong order flow, especially from data center projects in the U.S. and Europe.

• Siemens Gamesa's Q3 order intake is mainly onshore, with offshore orders shifting to FY2027.

Profitability and margins

• Profitability is improving, with service margins benefiting from strong new unit pricing and operational performance.

• Grid Technologies guidance raised: revenue growth now 25%-27% and profit before special items 18%-20% for FY2026.

• Margins are improving due to operating leverage, productivity, and execution, not just pricing.

• Siemens Gamesa expects break-even for the full year, with profitability improving in H2.