Siemens Energy Posts Record Revenue, Targets €5 Billion Net Income in 2027
Key Facts
Siemens Energy reported record results for the fiscal year ended September 30, 2026, with comparable revenue growth of 15.5%. The company said the year’s performance reflected broad improvement across its businesses. Profit margin before special items rose to 12.4%, while free cash flow before tax was nearly €8.8 billion. Net income also exceeded €4.1 billion, compared with about €1.7 billion in the previous fiscal year. The results point to a strong year for the group, alongside 2027 guidance that does not fully match analysts’ estimates. In early trading on November 11, the stock index rose 5.1%, according to a Reuters report carried by MarketScreener.
In the fourth quarter, revenue reached €12.83 billion, above analysts’ average forecast of €12.56 billion, while earnings per share came in at €1.49, against expectations of €1.38. Orders, however, fell short of the picture painted by those two results: comparable orders rose 5.2% to €14.82 billion, below analysts’ average forecast of €15.47 billion. The beat was therefore not broad-based across all quarterly metrics: revenue and earnings per share topped estimates, while orders missed them. For the full fiscal year, comparable orders rose 18.8% to €68.1 billion. The book-to-bill ratio was 1.54 times, lifting the order backlog to a record €164 billion.
A turnaround at its wind business, Siemens Gamesa, was among the main drivers of operational improvement. Its profit before special items improved by about €1.4 billion year on year, reaching slightly above break-even. That puts the business at the break-even threshold after it had weighed on group performance, according to the company’s fiscal-year results. Chief Executive Christian Bruch said reaching this point “provides the foundation for the next phase of our transformation.” The improvement reflects the wind business’s contribution to the annual figures, alongside revenue growth and stronger margins and cash flow. Break-even remains an operational marker on the path to transformation, as the company sets higher profitability targets for the coming years.
For fiscal 2027, Siemens Energy forecast comparable revenue growth of between 14% and 16% and a profit margin before special items of between 14% and 16%. It also forecast net income of about €5 billion and free cash flow before tax of about €10 billion. Compared with 2026 results, the targeted margin range is above the actual margin of 12.4%, while expected net income exceeds the €4.129 billion recorded in the fiscal year just ended. However, the net income estimate of about €5 billion was below analysts’ average forecast, according to Investing.com. The guidance therefore combines expectations of continued growth and improvement in margins and cash flow with a gap between the net income outlook and market estimates.
The company attributed its outlook to continued growth in global electricity demand. It said the expansion of data centers to support AI adoption is likely to drive additional investment in power generation capacity and grid infrastructure, particularly in North America. Management expects this demand to feed through to generation and grid requirements, areas covered by the group’s businesses. Further out, the company is targeting comparable revenue growth of between 12% and 14% annually on a compound basis by fiscal 2030, and a profit margin of between 20% and 22%. Those targets follow a 12.4% margin in 2026, putting the profitability trajectory among the main pillars of the company’s plan. Achieving the targets remains tied to developments in demand and investment cited in the company’s outlook.
The company proposed a dividend of €2.30 per share for fiscal 2026, compared with €0.70 per share for 2025, and announced an additional share buyback of up to €9 billion through the end of fiscal 2030. The proposals put shareholder returns alongside the year’s results and the company’s plans for the coming years, as well as its growth and profitability targets. The company set December 10, 2026, for publication of its annual report, followed by February 11, 2027, for the announcement of first-quarter fiscal 2027 results. The next quarterly results will provide a fresh indication of revenue and orders at the start of the new fiscal year. The annual report will provide full details of the 2026 results.