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Published on 06/30/2026 at 06:16 am EDT
By Adam Whittaker
Shares in Siemens Energy jumped after the company’s management said demand for its products remains strong, reassuring market watchers that electrification efforts and the rise of the data centers needed to power artificial intelligence continue to provide a tailwind.
In morning trade in Europe, shares in the German energy technology company were up 5.1% at 165.04 euros, bringing their year-to-date gain to nearly 40%.
In a call on Monday after markets were closed, the company’s management reiterated its full-year guidance. The message to investors was that the electricity market continues to grow and that the sector’s momentum remains very strong.
In May, the company reported its highest-ever order backlog and raised its full-year guidance after second-quarter earnings jumped. Grid and power-generation equipment manufacturers are benefiting from the rise of artificial intelligence and the need to power the data centers the technology relies upon.
Monday’s update was upbeat and implied gas services orders are likely to be strong in the third quarter, Citi analysts wrote.
Siemens Energy said it sees no signs of demand weakness, and that order visibility remains high. Demand across its gas services unit remains strong with continued service momentum supporting margins, it said.
The grid technologies division is seeing higher growth and profitability as countries expand transmission capacity and upgrade aging infrastructure, it said. The unit continues to benefit from data center demand, with around 2 billion euros ($2.28 billion) of related orders booked in the first half of the year. This is almost the same as the entire amount booked in fiscal 2025, the company said.
Siemens Energy continues to see improved profitability in its wind turbine business Gamesa and expects the unit to break even for the year.
In its updated guidance in May, the company said it expected comparable revenue growth of between 14% and 16% for the year through Sept. 30. It said its profit margin before special items should range between 10% and 12% while net income for the year would come in at around 4 billion euros.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
06-30-26 0615ET
Siemens Energy: Structural demand unfazed; expect new mid-term targets with Q4 results
May 12, 2026 at 10:43 am EDT
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