Siemens Energy AG operates as an energy technology company worldwide and traces its roots back to 1866, making it one of the oldest companies in the energy sector. The company emerged as an independent entity in 2020 through the spinout from Siemens AG, consisting of the power and gas segment and Siemens Gamesa. Trading of the shares of the new Siemens Energy AG on the Frankfurt Stock Exchange began on September 28, 2020, marking the beginning of its journey as a standalone public company.
Despite being a relatively new independent entity, Siemens Energy carries with it over 150 years of experience in the energy sector. The company has established itself as a global leader in energy technology, with 91,000 employees in more than 90 countries. The significance of its technology becomes evident when considering that approximately one-sixth of global electricity generation is based on its technology.
Siemens Energy operates through four main business segments that cover nearly the entire energy value chain:
* Gas Services: Focuses on providing gas and steam turbines, generators, and heat pumps, along with comprehensive maintenance and digitalization services for power generation.
* Grid Technologies: Specializes in high-voltage direct current transmission systems, offshore wind farm grid connections, transformers, and flexible alternating current transmission systems.
* Transformation of Industry: Offers electrolyzers, industrial steam turbines, compressors, and various industrial solutions.
* Siemens Gamesa: Handles both onshore and offshore wind energy solutions, including turbine design, manufacturing, installation, and maintenance services.
The company serves utilities, independent power producers, project developers, municipal energy producers, engineering, procurement, and construction companies, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers. This diverse customer base provides stability and growth opportunities across various market segments.
Siemens Energy has demonstrated strong financial performance, particularly in recent quarters. Siemens Energy's Q2 revenue grew by 20% year-on-year, showcasing the company's ability to capitalize on growing demand for energy infrastructure. Siemens Energy's Profit before Special items amounted to €906 million, reflecting a margin of 9.1% for Q2 FY 2025.
The company's cash flow performance has been particularly impressive. Free cash flow pre-tax amounted to €1,390 million, sharply increased compared to the prior-year's figure (Q2 FY 2024: €483 million). This substantial improvement in cash generation demonstrates the company's operational efficiency and strong project execution capabilities.
As of June 2025, Siemens Energy's current market cap is $80.2 Billion with 796 Million shares, reflecting its position as a major player in the global energy sector. The company's stock trades on the Frankfurt Stock Exchange under the ticker symbol ENR, with shares traded on the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange under the symbol ENR.
One of Siemens Energy's key strengths is its substantial order backlog, which provides excellent visibility into future revenue streams. Siemens Energy's order backlog reached a record €133 billion, demonstrating strong demand for the company's products and services. Siemens Energy's orders amounted to €14.4 billion in the most recent quarter, indicating continued robust demand.
Due to the positive business development, Siemens Energy updates the outlook for fiscal year 2025. The company has raised its guidance across multiple key metrics, reflecting confidence in its market position and execution capabilities.
Key Financial Targets for FY 2025:
* Comparable revenue growth in fiscal year 2025 in a range of 13% to 15%.
* Profit margin before Special items between 4% and 6%.
* Net income of up to €1 billion excluding assumed positive Special items.
* Free cash flow pre-tax for the fiscal year 2025 is updated to around €4 billion.
The company has provided detailed guidance for its key segments:
* Gas Services assumes a comparable revenue growth of 11% to 13% and a Profit margin before Special items of 11% to 13%.
* Grid Technologies plans to achieve a comparable revenue growth of 23% to 25% and a Profit margin before Special items between 10% and 12%.
* Transformation of Industry expects a comparable revenue growth of 11% to 13% and a Profit margin before Special items of 8% to 10%.
Siemens Energy is strategically positioned to benefit from the global energy transition. The company works with its customers and partners on energy systems for the future, thus supporting the transition to a more sustainable world. With its portfolio of products, solutions, and services, Siemens Energy covers almost the entire energy value chain – from power generation and transmission to storage.
The increasing demand for renewable energy infrastructure, grid modernization, and energy storage solutions creates significant growth opportunities for the company. The rising demand for electricity led to an exceptionally strong quarter and first half of the fiscal year for our business. Favorable market trends have led to a broad-based increase in demand for our products, as noted by the company's leadership.
Despite its strong position, Siemens Energy faces certain challenges. The company has experienced issues with its wind energy segment, particularly following quality problems with onshore turbines. Siemens Energy's share price dropped by nearly 35% between June 21–23, 2023. However, the company has been working to address these issues and stabilize its wind business operations.
Additionally, the government of the USA announced tariffs on imports from various countries. Siemens Energy is closely monitoring developments and continuously analyzing their potential impact on its net assets, financial position, and results of operations.
Siemens Energy has established a clear dividend policy to provide returns to shareholders. The company maintains a solid dividend policy and intends to pay out between 40 and 60 percent of consolidated net income after taxes to shareholders each year. This commitment to returning capital to shareholders demonstrates the company's confidence in its cash generation capabilities and long-term financial health.
Siemens Energy represents a compelling investment opportunity in the energy transition sector, backed by strong financial performance, a substantial order book, and a comprehensive portfolio of energy solutions. The company's strategic position in the global energy transformation, combined with its operational improvements and strong cash generation, makes it a key player to watch in the evolving energy landscape.
