Siemens Energy – Earnings release Q4 FY 2026 – July 1 to September 30, 2026

Siemens Energy reports a record year and targets a margin of 20 to 22 percent by 2030

 

“The Siemens Energy team delivered on all raised guidance targets, significantly increased earnings and achieved break-even in our wind business.

This provides the foundation for the next phase of our transformation. Our 2030 targets set a clear direction and underscore our successful execution in a favorable market environment. With a dividend of €2.30 per share and through our continuous share buyback program, our shareholders participate in the Company’s success,” says Christian Bruch, President and CEO of Siemens Energy AG.

 

Q4 Fiscal Year 2026 

• Siemens Energy continued its outstanding operational performance and closed fiscal year 2026 with a strong fourth quarter. Orders exceeded the prior-year quarter, revenue reached a new record high, and Profit before Special items more than tripled year-over-year.
• Orders increased by 5.2% year-over-year on a comparable basis (excluding currency translation and portfolio effects) to €14.8bn. As expected, order intake moderated from the exceptionally strong levels of the first three quarters, reflecting normal project phasing and the large-project nature of the business. Book-to-bill ratio (ratio of orders to revenue) remained clearly above 1. As a result, order backlog increased to a new record level of €164bn at fiscal year-end.
• With the highest quarterly revenue ever, totaling €12.8bn, Siemens Energy exceeded the prior-year level by 21.5% on a comparable basis. Both Gas Services and Grid Technologies also achieved all-time high revenue levels.
• Siemens Energy’s Profit before Special items amounted to €1,540m (Q4 FY 2025: €471m). Siemens Gamesa achieved a positive quarterly result for the second consecutive quarter. Special items amounted to positive €184m (Q4 FY 2025: negative €143m), mainly reflecting the reversal of impairments on aeroderivative gas turbine assets. Profit was €1,725m (Q4 FY 2025: €328m).
• Net income for the quarter totaled €1,360m (Q4 FY 2025: €236m). Corresponding basic earnings per share (EPS) were €1.49 (Q4 FY 2025: €0.19).
• Free cash flow pre tax increased substantially to €1,636m (Q4 FY 2025: €1,327m). The development was mainly driven by the improved profit. Also, the recent quarter continued to benefit from customer advance payments and reservation fees on the back of continued high order intake.

 

Fiscal Year 2026 

• Siemens Energy looks back on a record fiscal year 2026. All raised guidance targets were met or exceeded. The business performance of Gas Services and Grid Technologies was exceptional in every respect. Transformation of Industry also surpassed the prior-year levels in terms of volume, profit and cash flow. Siemens Gamesa reached break-even on Profit before Special items as targeted.
• At €68.1bn, orders were 18.8% above the prior year on a comparable basis. Revenue advanced by 15.5%, likewise on a comparable basis, to €44.2bn, with every segment contributing to growth. Book-to-bill ratio was strong at 1.54 for the fiscal year.
• Profit before Special items more than doubled to €5,486m (FY 2025: €2,355m). All segments contributed to the improvement, with Siemens Gamesa delivering the strongest progress by achieving break-even. Special items amounted to negative €82m (FY 2025: positive €6m). Profit totaled €5,405m (FY 2025: €2,361m).
• Net income increased sharply to €4,129m (FY 2025: €1,685m). Corresponding basic EPS were €4.44 (FY 2025: €1.63).
• Free cash flow pre tax climbed sharply to €8,799m (FY 2025: €4,663m), with all segments improving, led by Gas Services and Grid Technologies.
• Reflecting the very successful business development, Siemens Energy intends to let its shareholders participate in the Company’s success. In addition to the share buyback during the recent fiscal year with a total value of €3.1bn, the Company proposes a dividend of €2.30 per share for fiscal year 2026 (FY 2025: €0.70 per share). This corresponds to around 50% of the Group’s net income attributable to shareholders of Siemens Energy AG, adjusted for extraordinary non-cash effects. In addition, Siemens Energy is expanding its share buyback program and plans to repurchase additionally up to €9bn of its own shares through the end of fiscal year 2030.

 

Fiscal Year 2027 and mid-term targets Fiscal Year 2030

• For fiscal year 2027, Siemens Energy expects comparable revenue growth of 14% to 16% and a Profit margin before Special items of 14% to 16%. In addition, the Company anticipates Net income of around €5bn and Free cash flow pre tax of around €10bn.
• Driven by continued favorable market conditions as well as structural and operational improvements, Siemens Energy has set mid-term growth and profitability targets for fiscal year 2030. The Company aims to achieve a compound annual revenue growth on a comparable basis of 12% to 14% through fiscal year 2030 (i. e., fiscal years 2026 to 2030). For fiscal year 2030, Siemens Energy targets a Profit margin before Special items in the range of 20% to 22%.

 

 

Siemens Energy

• Siemens Energy’s order intake was up year-over-year. This was primarily driven by a sharp increase at Siemens Gamesa. Overall, substantial growth in the service business more than offset the moderate decline in the new units business.
• Book-to-bill ratio was 1.16 and order backlog increased once again to a new record level of €164bn.
• Revenue growth was driven by Grid Technologies and Gas Services. Both new units and service contributed, with new units expanding at a faster pace.
• Profit before Special items more than tripled, and the corresponding margin also increased sharply. Key drivers were higher volume, strong project execution and the better margin quality of the processed order backlog at Gas Services and Grid Technologies; Siemens Gamesa also delivered a positive result.
• Special items included a positive one-time effect related to the reversal of impairments on assets for aeroderivative gas turbines at Gas Services.
• All segments contributed to the increase in Free cash flow pre tax. The improvement was mainly driven by the higher profit. In addition, Free cash flow pre tax again benefited from customer advance payments, including reservation fees.

 

 

Gas Services

• Order intake at Gas Services was clearly above the prior-year level with demand remaining strong. Year-over-year growth was driven by a significant increase in the service business, while new units reflected expected timing in the large project business.
• Book-to-bill ratio was 1.26 and order backlog increased to €74bn.
• Gas Services reported record quarterly revenue. Sharp growth in the new units business exceeded the significant increase in the service business.
• Profit before Special items more than doubled. This was primarily driven by a higher margin, reflecting the increased profitability of the processed order backlog especially in the new units business.
• Positive Special items resulted from the reversal of impairments on aeroderivative gas turbine assets, driven by the recovery in customer demand.

 

 

Grid Technologies

• Orders were below the prior-year quarter, which had included two large high-voltage direct current (HVDC) projects in the North Sea and Spain.
• Book-to-bill ratio was 1.30 and order backlog increased to €52bn.
• Revenue hit a new quarterly high, supported by the steady processing of the order backlog. All businesses contributed, led by the product business and here specifically transformers.
• Profit before Special items nearly doubled. This was driven by both higher volume and a margin improvement of more than 500 basis points. The increase primarily reflects the improved margin profile of the processed order backlog year-over-year as well as productivity improvements.

 

 

Transformation of Industry

• Transformation of Industry showed a moderate increase in orders. This was primarily driven by the service business. In the prior-year quarter, new units had benefited from a major contract at Sustainable Energy Systems.
• Book-to-bill ratio was 1.07, and order backlog at the end of the quarter remained at €8bn.
• Revenue was moderately below the prior-year level, partly related to disruptions from the situation in the Middle East.
• This was also reflected in a decline in Profit before Special items and the corresponding margin.

 

 

Siemens Gamesa

• Orders more than doubled year-over-year. This was driven by a large offshore order for a wind farm in the Baltic Sea worth around €1.7bn and resulted in a sharp increase in both the new units business and the service business of Siemens Gamesa.
• Book-to-bill ratio was 0.82 and order backlog remained at €31bn, unchanged from the previous quarter’s level.
• Revenue increased clearly year-over-year, driven by growth in both the offshore and onshore businesses. The increase in the new units business clearly exceeded growth in the service business.
• Profit before Special items improved sharply and, as in the previous quarter, remained positive. This was primarily attributable to the offshore business, reflecting improvements due to productivity gains 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), corporate services (e.g., management of the Group’s real estate portfolio), equity investments, treasury activities, eliminations and other items.

 

 

 

Outlook 

For fiscal year 2027, Siemens Energy expects the favorable trends in the energy sector to continue. Global electricity demand is set to rise further, driven by the electrification of transport, heating, cooling and industry, as well as by new large consumers such as data centers. The build-out of data centers to support the adoption of artificial intelligence is likely to lead to further investment in power generation capacity and grid infrastructure, especially in North America. At the same time, the need for security of energy supply continues to support investment in reliable generation and resilient grids. The gas turbine market is expected to remain robust, supported by data centers, government programs for grid stability and coal phase-out, as well as industrial growth. Investment in grid infrastructure is expected to remain at high levels, driven by electrification, the expansion of renewable energies and the modernization of aging grids. Siemens Energy therefore expects Gas Services and Grid Technologies in particular to benefit from these developments.

For fiscal year 2027, for Siemens Energy a comparable revenue growth (excluding currency translation and portfolio effects) in the range of 14% to 16% (actual figure FY 2026: 15.5%) and a Profit margin before Special items between 14% and 16% (actual figure FY 2026: 12.4%) are forecasted. In addition, a Net income of around €5bn (actual figure FY 2026: €4,129m) and a Free cash flow pre tax of around €10bn (actual figure FY 2026: €8,799m) are expected.

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

Assumptions per business area

• Gas Services assumes a comparable revenue growth of 24% to 26% (actual figure FY 2026: 20.3%) and a Profit margin before Special items of 18% to 20% (actual figure FY 2026: 16.4%).
• Grid Technologies plans to achieve a comparable revenue growth of 22% to 24% (actual figure FY 2026: 26.2%) and a Profit margin before Special items between 21% and 23% (actual figure FY 2026: 18.9%).
• Transformation of Industry expects a comparable revenue growth of 0% to 2% (actual figure FY 2026: 3.4%) and a Profit margin before Special items of 11% to 13% (actual figure FY 2026: 12.1%).
• Siemens Gamesa assumes a comparable revenue growth of negative 3% to negative 1% (actual figure FY 2026: positive 6.7%) and a Profit margin before Special items of 0% to 2% (actual figure FY 2026: 0.1%).

 

 

Notes and forward-looking statements 

The press conference call on Siemens Energy’s financial results for the fourth quarter of fiscal year 2026 will be broadcast live for journalists at https://www.siemens-energy.com/pressconference starting at 8:00 a.m. CET today.

You can also follow the conference call for analysts and investors live at www.siemens-energy.com/analystcall starting at 11:00 a.m. CET 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,” “anticipate,” “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, performance, 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 developments 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 

Fourth quarter of fiscal year 2026

 

Key figures (in millions of €, except where otherwise stated)

 

 

Consolidated Statements of Income

 

 

Consolidated Statements of Comprehensive Income

 

 

Consolidated Statements of Financial Position

 

 

Consolidated Statements of Cash Flows

 

 

Overview of Segment figures

 

 

EBITDA Reconciliation

 

 

Orders & Revenue by region (location of customer)

 

 

Disaggregation of external revenue of segments