Siemens Energy – Earnings release Q2 FY 2026: following a strong second quarter, Siemens Energy raises its outlook

• Siemens Energy delivered record order levels, driven in particular by strong demand in the U.S., resulting in a record order backlog and broad-based improvements across all key performance indicators compared with the prior‑year quarter.
• Siemens Energy achieved a new all‑time high in orders of €17.7bn driven by another record level of orders at Gas Services and a sharp increase in Grid Technologies year-over-year. Book‑to‑bill ratio (ratio of orders to revenue) was 1.72, and order backlog reached €154bn for the quarter.
• On a comparable basis (excluding currency translation and portfolio effects), revenue increased by 8.9% year‑over‑year to €10.3bn, supported by all segments.
• Profit before Special items rose substantially year‑over-year to €1,164m (Q2 FY 2025: €906m), mainly due to the profit improvement at Siemens Gamesa. Special items amounted to negative €55m (Q2 FY 2025: negative €291m). Siemens Energy’s Profit came in at €1,109m (Q2 FY 2025: €615m).
• Net income also increased sharply to €835m (Q2 FY 2025: €501m). Corresponding basic earnings per share amounted to €0.89 (Q2 FY 2025: €0.50).
• Free cash flow pre tax increased to €1,975m (Q2 FY 2025: €1,390m). The sharp increase followed the profit improvement and was also strongly supported by customer advance payments related to the high level of orders.
• Based on the positive business development, Siemens Energy raised its outlook for fiscal year 2026. Siemens Energy now expects for the Group to achieve comparable revenue growth in a range of 14% to 16% and a Profit margin before Special items between 10% and 12%. Siemens Energy now expects a Net income of around €4bn. Also, the outlook for Free cash flow pre tax for the fiscal year 2026 was raised to around €8bn.

 

“Our strong market momentum continues despite geopolitical uncertainty, leading to another exceptionally strong quarter and first half of the fiscal year. Our raised outlook reflects our confidence that these developments will continue, as well as in our resilience and project execution”, says Christian Bruch, President and CEO of Siemens Energy AG.

 

 

Siemens Energy

• The increase in orders was driven by strong demand in the new units business at Gas Services and Grid Technologies. From a regional perspective, the U.S. was the main contributor to Siemens Energy’s order growth, with order intake more than doubling compared with the prior‑year quarter.
• Book-to-bill ratio was 1.72 and order backlog rose to a new record level of €154bn.
• All segments contributed to revenue growth, which was primarily driven by the new units business at Gas Services and Grid Technologies.
• Profit before Special items and the corresponding margin increased substantially, supported by broad-based improvements across the portfolio. Grid Technologies’ result was impacted by the absence of the prior-year’s positive timing effects of around €100m. Siemens Gamesa delivered the most pronounced improvement in both profit and margin.
• The increase of Free cash flow pre-tax was driven by the performance of Gas Services and Grid Technologies with customer advance payments, including reservation fees, in connection with higher orders.

 

Gas Services

• Gas Services exceeded the previous quarter’s record level and achieved the highest quarterly order intake in its history. The positive development was mainly driven by demand from the U.S. in connection with data centers as well as orders from power additions in Europe (e.g. Poland).
• Book‑to‑bill ratio was 2.55 and order backlog increased to €66bn.
• Revenue was significantly above the prior‑year level. Growth was driven by the new units business, while service revenue was slightly below the high level recorded in the prior year.
• Profit before Special items increased clearly, driven by volume effects. Margin development reflects the business mix with a more pronounced new units share.

 

Grid Technologies

• The increase in order intake was mainly driven by the solutions business primarily as a result of a large order for a high‑voltage direct current (HVDC) project in the Baltic Sea worth more than €1bn. In addition, the product business with transformers recorded substantial growth, mainly driven by demand from the U.S.
• Book‑to‑bill ratio was 2.28, and the order backlog increased to €49bn.
• Revenue was significantly above the prior‑year level, driven primarily by growth in the switchgear and transformer businesses.
• Profit before Special items and the corresponding margin declined year-over-year due to timing effects of around €100m that had positively affected the prior‑year results.

 

Transformation of Industry

• Order intake at Transformation of Industry was below the level of the prior‑year quarter, mainly driven by customer reluctance in the Middle East, particularly at Compression and Electrification, Automation, Digitalization.
• Book‑to‑bill ratio was 0.88 and order backlog at the end of the quarter was €8bn, unchanged from the previous quarter.
• Revenue increased moderately compared with the prior‑year quarter.
• Profit before Special items and the corresponding margin improved clearly year-over-year, mainly due to productivity improvements and a higher margin of the processed

 

Siemens Gamesa

• Orders were moderately above the level of the prior‑year quarter, mainly driven by the onshore new units business. In the recent quarter, first orders for the SG 7.0 platform, the successor to the 5.X turbine, came in.
• Book‑to‑bill ratio declined to 0.33, and the order backlog decreased to €33bn.
• Year-over-year, revenue increased slightly due to growth in the offshore business, with an increase in service revenue more than offsetting a slight decline in the new units business.
• Profit before Special items improved substantially, primarily due to productivity improvements and increased cost efficiency.

 

Reconciliation to Consolidated Financial Statements

• Reconciliation to Consolidated Financial Statements includes items, which management does not consider to be indicative of the segments’ performance – mainly group management costs (management and corporate functions) and other central items, Treasury activities as well as eliminations. Other central items include Siemens brand fees, corporate services (e.g. management of the Group’s real estate portfolio), corporate projects, centrally held equity interests and other items.

 

 

 

Outlook

Based on the positive business development in the first half-year and the strong market demand, Siemens Energy raised its outlook for fiscal year 2026. The change in the outlook is mainly driven by a stronger than expected performance at Grid Technologies. Regarding Free cash flow pre tax, the higher outlook is particularly attributable to Gas Services and Grid Technologies, which both experience strong cash inflows driven by customer payments related to strong order momentum.

Siemens Energy now expects for the Group to achieve comparable revenue growth (excluding currency translation and portfolio effects) in fiscal year 2026 in a range of 14% to 16% (before 11% to 13%) and a Profit margin before Special items between 10% and 12% (before between 9% and 11%). Siemens Energy now expects a Net income of around €4bn (before in the range of €3bn to €4bn). Also, the outlook for Free cash flow pre tax for the fiscal year 2026 was raised to around €8bn (before in a range of €4bn to €5bn).

The outlook for Siemens Energy does not include charges related to any future legal and regulatory matters.

Amended overall assumptions per business area

• Gas Services assumes a comparable revenue growth of 16% to 18% and a Profit margin before Special items of 14% to 16% (both unchanged).
• Grid Technologies now plans to achieve a comparable revenue growth of 25% to 27% (before 19% to 21%) and a Profit margin before Special items between 18% and 20% (before between 16% and 18%).
• Transformation of Industry expects a comparable revenue growth of 5% to 7% and a Profit margin before Special items of 11% to 13% (both unchanged).
• Siemens Gamesa now assumes a comparable revenue growth of 3% to 5% (before 1% to 3%) and a Profit margin before Special items still at break-even.

 

 

 

Notes and forward-looking statements

The press conference call on Siemens Energy’s financial results of the second quarter of fiscal year 2026 will be broadcasted live for journalists at https://www.siemens-energy.com/pressconference starting at 8:30 a.m. CEST today.

You can also follow the conference call for analysts and investors live at www.siemens-energy.com/analystcall starting at 10:30 a.m. CEST today.

Recordings of both conference calls will be made available afterwards.

The financial publications can be downloaded at: www.siemens-energy.com/financial-publications.

This document contains statements related to our future business and financial performance, and future events or developments involving Siemens Energy that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “antici-pate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project,” or words of similar meaning. We may also make forward-looking statements in other reports, prospectuses, in presentations, in material delivered to shareholders, and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens Energy´s management, of which many are beyond Siemens Energy´s control. These are subject to a number of risks, uncertainties, and other factors, including, but not limited to, those described in disclosures, in particular in the chapter “Report on expected developments and associated material opportunities and risks” in the Annual Report and the Half-year Financial Report, which should be read in conjunction with the Annual Report. Should one or more of these risks or uncertainties materialize, should acts of force majeure, such as pandemics, occur, or should underlying expectations including future events occur at a later date or not at all, or should assumptions not be met, Siemens Energy´s actual results, perfor-mance, or achievements may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens Energy neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of develop-ments which differ from those anticipated. This document includes supplemental financial measures – that are not clearly defined in the applicable financial reporting framework – and that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens Energy´s net assets and financial position or results of operations as presented in accordance with the applicable financial reporting framework in its consolidated financial statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

 

 

 

Financial Results 

Second quarter of fiscal year 2026