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1. Company Snapshot

1.a. Company Description

Siemens Energy AG operates as an energy technology company worldwide.It operates in two segments, Gas and Power; and Siemens Gamesa Renewable Energy.The company provides gas and steam turbines, generators, gas engines, instrumentation and controls, and electrical systems, as well as performance enhancement, maintenance, customer training, and professional consulting services for central and distributed power generation; and transformers, air and gas-insulated switchgears, AC transmission systems, offshore windfarm grid connections, high voltage direct current transmission systems, high voltage substations, digital solutions and components, and other products.


It also offers rotating equipment that includes industrial and aero-derivative gas turbines, turbo- and reciprocating compressors, power generation products, and compression trains and modules, as well as solutions in the fields of electrification, automation and digitization, plant safety, plant security, and water treatment.In addition, the company develops technologies in the fields of decarbonized energy and storage systems.Further, it offers onshore wind turbine design, engineering, manufacturing, and installation solutions for onshore markets; offshore wind turbine equipment design, manufacturing, and installation solutions; and operation and maintenance services for wind farms.


The company serves utilities, independent power producers, project developers, oil and gas, transmission and distribution system operators, and industrial and infrastructure customers.Siemens Energy AG was founded in 1866 and is based in Munich, Germany.

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1.b. Last Insights on ENR

Breaking News: Siemens Energy AG is among key players in the substation automation market driven by rising electricity demand and modernization needs. The market is expected to see opportunities in automation technologies and integrating distributed resources. However, cybersecurity risks pose a major barrier. Siemens Energy along with Hitachi Energy and GE Vernova are positioned to benefit from growth in the sector. No recent earnings release data available. Analysts at various firms have recommended a hold rating on Siemens Energy AG, with some citing its strong position in the growing market.

1.c. Company Highlights

2. Siemens Energy's Strong Q1 FY2026: A Deeper Dive into Financials and Operations

Siemens Energy reported a robust Q1 FY2026, with revenue reaching EUR 9.7 billion, up 12.8% year-over-year on a comparable basis. The company's profit before special items was EUR 538 million, with a margin of 17.6%. However, the actual EPS came out at EUR 0.2742, missing estimates of EUR 0.4084. The company's free cash flow was a record EUR 2.9 billion, nearly doubling last year's result, driven by strong orders, reservation fees, and some timing effects.

Publication Date: Feb -12

📋 Highlights
  • Record Order Intake:: Q1 2026 orders reached EUR 17.6 billion (up 34% YoY), driven by 102 gas turbines (13 GW capacity) and strong demand in Grid Technologies.
  • Free Cash Flow Surge:: Achieved EUR 2.9 billion (nearly double 2025), supported by reservation agreements and milestone payments in Grid Technologies (EUR 1.8 billion pretax).
  • Gas Services Breakthrough:: Booked EUR 8.8 billion (up 81% YoY) with a 2.83 book-to-bill ratio, setting a EUR 60 billion order backlog record.
  • Grid Technologies Growth:: Revenue rose 26.9% YoY to EUR 2.4 billion, with a 17.6% margin (upper half of guidance), fueled by data center and grid stabilization projects.
  • Backlog and Pricing Momentum:: Total order backlog hit EUR 146 billion (up from prior record), with improved margins due to favorable pricing and 13-year average service contract duration.

Operational Highlights

The company's operational performance was strong across all businesses. Gas Services delivered its strongest quarter ever, booking 102 gas turbines, with the U.S. contributing significantly to the order intake. Grid Technologies also reported a strong quarter, driven by robust demand across both products and solutions. The order backlog stood at a record EUR 146 billion, giving the company strong visibility for the fiscal year and beyond.

Valuation Metrics

To understand what's priced into Siemens Energy's stock, we can look at various valuation metrics. The company's P/E Ratio is 99.8, indicating a relatively high valuation. The P/S Ratio is 3.53, and the EV/EBITDA is 31.61. The company's ROE is 14.09%, and the ROIC is 8.93%. The Net Debt / EBITDA is -1.24, indicating a healthy debt position. The Free Cash Flow Yield is 2.97%, which is relatively attractive.

Outlook and Guidance

Christian Bruch stated that the company is seeing good structural demand, a record-high and high-quality order book, and disciplined execution across all segments. The company aims to achieve a similar order intake for the full year, but is being cautious about the execution of its capacity expansions. Analysts estimate next year's revenue growth at 12.9%, indicating a positive outlook for the company's future performance.

Segment Performance

The Grid Technologies division reported a strong margin of 17.6% in Q1, which is within the upper half of the full-year guidance range. Maria Ferraro emphasized that the division's performance is due to efficient execution of its backlog, rather than one-time effects. The Gas Services business also reported a significant improvement in order intake, with a book-to-bill ratio of 2.83.

3. NewsRoom

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Is Siemens Energy (XTRA:ENR) Pricing Look Stretched After 7x Three Year Surge?

05:09

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Substation Automation Market Size, Industry Dynamics, Opportunity Analysis and Forecast 2026-2035

Mar -13

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European Indexes Fall at Open as Oil Pushes Higher

Mar -13

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Cv International, Introduces Nitro-Lite™ to their WindSuite, A Turn‑Key Nitrogen Servicing Platform for Wind Turbines

Mar -10

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Babcock & Wilcox Will Deliver 1.2 GW of Gas-Fired Capacity for Applied Digital Data Centers

Mar -09

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Siemens Energy Buyback Puts Gamesa Turnaround And Cash Returns In Focus

Mar -09

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Assessing Siemens Energy (XTRA:ENR) Valuation After Recent Mixed Share Price Performance

Mar -09

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European Stocks Tumble at Open as Oil Surges

Mar -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.30%)

6. Segments

Gas Services

Expected Growth: 4.5%

Siemens Energy AG’s Gas Services segment growth is driven by increasing demand for natural gas, transmission and storage infrastructure development, and the need for efficient processing and transmission solutions.

Siemens Gamesa

Expected Growth: 5.4%

Siemens Gamesa’s growth driven by rising demand for renewable energy, increasing investments in offshore wind farms, and technological advancements in turbine efficiency.

Grid Technologies

Expected Growth: 5.5%

Siemens Energy AG's Grid Technologies segment is poised for growth driven by increasing demand for efficient and reliable power transmission and distribution solutions, supported by government initiatives and investments in grid modernization.

Transformation of Industry

Expected Growth: 6.3%

Siemens Energy's focus on future-proof industrial infrastructure, driven by digitalization and decarbonization, will fuel growth, leveraging its expertise in industrial automation and electrification, to decarbonize energy systems.

Reconciliation to Siemens Energy

Expected Growth: 4.4%

Siemens Energy's Reconciliation segment is driven by increasing demand for digital grid management and cybersecurity solutions, coupled with growing investments in renewable energy and grid modernization, particularly in the Asia-Pacific region.

7. Detailed Products

Gas Turbines

Siemens Energy AG offers a range of gas turbines for power generation, oil and gas, and industrial applications.

Steam Turbines

Siemens Energy AG provides steam turbines for fossil-fired, nuclear, and renewable energy applications.

Generators

Siemens Energy AG offers a range of generators for power generation, oil and gas, and industrial applications.

Transformers

Siemens Energy AG provides transformers for power transmission and distribution, and industrial applications.

Grid Control Systems

Siemens Energy AG offers grid control systems for power transmission and distribution, and industrial applications.

Wind Turbines

Siemens Energy AG provides wind turbines for onshore and offshore wind farms.

Hydrogen Solutions

Siemens Energy AG offers hydrogen solutions for power-to-x applications, and industrial processes.

Digital Grid Applications

Siemens Energy AG provides digital grid applications for power transmission and distribution, and industrial applications.

Industrial Automation

Siemens Energy AG offers industrial automation solutions for process industries, and oil and gas industries.

8. Siemens Energy AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Siemens Energy AG is moderate due to the presence of alternative energy sources and technologies.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Siemens Energy AG's products and services, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers for raw materials and components, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the energy industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the energy industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.99%
Debt Cost 4.46%
Equity Weight 64.01%
Equity Cost 13.79%
WACC 10.43%
Leverage 56.23%

11. Quality Control: Siemens Energy AG passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Sandvik

A-Score: 5.7/10

Value: 2.6

Growth: 4.8

Quality: 6.9

Yield: 3.8

Momentum: 8.0

Volatility: 8.0

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Siemens

A-Score: 5.2/10

Value: 3.5

Growth: 5.0

Quality: 5.6

Yield: 5.0

Momentum: 6.5

Volatility: 5.7

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KONE

A-Score: 4.4/10

Value: 1.3

Growth: 3.3

Quality: 6.7

Yield: 5.6

Momentum: 6.5

Volatility: 2.7

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Vestas Wind Systems

A-Score: 4.3/10

Value: 3.7

Growth: 7.4

Quality: 4.7

Yield: 0.6

Momentum: 8.0

Volatility: 1.3

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Eaton

A-Score: 4.2/10

Value: 1.3

Growth: 5.9

Quality: 7.3

Yield: 3.1

Momentum: 3.0

Volatility: 4.3

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Siemens Energy

A-Score: 3.8/10

Value: 1.3

Growth: 6.1

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

143.95$

Current Price

143.95$

Potential

-0.00%

Expected Cash-Flows