Siemens Energy raised its fiscal 2026 outlook after posting record quarterly orders and sharply higher profits, driven by booming U.S. demand for gas turbines, grid equipment, and power infrastructure.
Siemens Energy raised its full-year guidance after delivering record second-quarter orders and a sharp increase in profit, underscoring the continued strength of global demand for power generation and grid infrastructure.
The German energy technology company reported quarterly orders of €17.7 billion for the three months ended March 31, up 29.5% on a comparable basis, while revenue climbed 8.9% to €10.3 billion. Profit before special items rose to €1.16 billion from €906 million a year earlier, and net income increased to €835 million.
The company said strong demand in the United States was a major growth driver, particularly for gas turbines tied to power demand from data centers and expanding electricity infrastructure. Siemens Energy’s order backlog reached a record €154 billion, with a book-to-bill ratio of 1.72. CEO Christian Bruch said the company’s “strong market momentum” continued despite geopolitical uncertainty and cited confidence in both project execution and resilient demand trends.
Gas Services delivered its highest quarterly order intake on record, with orders rising to €8.87 billion. The segment benefited from demand linked to U.S. data centers as well as new European power projects, including in Poland. Revenue in the division rose 15% on a comparable basis. Grid Technologies also posted a sharp increase in orders, climbing more than 41% year-over-year to nearly €7 billion.
The division secured a high-voltage direct current HVDC project in the Baltic Sea worth more than €1 billion and saw strong transformer demand from the U.S. market. The results reinforce a broader trend across the energy sector, where utilities and industrial customers are rapidly investing in grid modernization, electrification, and dispatchable generation capacity to support AI-driven data center growth and rising electricity consumption.
European and U.S. grid equipment suppliers have experienced surging demand amid lengthy equipment lead times and constrained manufacturing capacity. Siemens Gamesa, the company’s wind turbine subsidiary, continued its turnaround, narrowing its quarterly loss significantly. Profit before special items improved to negative €44 million from negative €249 million a year earlier, aided by productivity improvements and cost efficiencies. The company also reported initial orders for its SG 7.0 turbine platform.
Based on the strong first-half performance, Siemens Energy now expects comparable revenue growth of 14% to 16% for fiscal 2026, up from prior guidance of 11% to 13%. The company also raised its expected profit margin before special items to 10%–12%, while forecasting net income of around €4 billion and free cash flow pre-tax of roughly €8 billion.
The improved guidance was driven largely by stronger-than-expected performance at Grid Technologies and robust cash inflows from advance customer payments tied to elevated order activity. By Charles Kennedy for Oilprice.com
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