Siemens Energy Hits Record Highs as Analysts Boost Targets: How AI, Grid Demand and a Wind Turnaround Drive the Stock Rally

Record‑breaking share price: Siemens Energy shares climbed to a new all‑time high in early 2025. A German stock‑market summary noted that the stock jumped to €109.25—up 4.90 % from the previous close and well above the 52‑week low of €33.16 ^[1]. The company’s market capitalisation has surged, and it is now one of the largest weights in the DAX with a free‑float value of €82.86 billion ^[2].
Aggressive analyst upgrades: Bank of America added Siemens Energy to its Europe Top Ideas list, raising its price target from €110 to €150. The bank believes higher mid‑term targets, clarity around dividends or share buybacks and progress toward breakeven at the wind division will drive outperformance ^[3]. Berenberg also lifted its target to €122 (from €75), citing booming orders, solid free cash flow and the likelihood of a dividend from FY 2025 ^[4].
Strong third‑quarter results and record backlog: In Q3 2025 Siemens Energy reported orders of €16.6 billion, up 64.6 % year‑on‑year, driven by major offshore wind contracts and robust U.S. demand ^[5]. Revenue rose 13.5 % to €9.7 billion, and profit before special items reached €497 million, delivering a net profit of €697 million compared with a loss a year earlier ^[6]. The order backlog climbed to a record €136 billion, giving long‑term visibility ^[7].
Dividend resumption: Germany’s parliament lifted a dividend ban tied to a state‑backed funding facility sooner than expected, enabling Siemens Energy to propose a dividend in FY 2025. The company targets a payout ratio of 40–60 % of net income ^[8] and intends to decide on a payout in November ^[9].
Tailwinds from AI and grid expansion: Analysts note that surging electricity demand—driven by data‑centre expansion, artificial‑intelligence workloads and broader electrification—will increase orders for gas turbines, power grids and industrial decarbonisation solutions. Seeking Alpha believes the company’s diverse segments, exposure to small‑modular nuclear reactors and €136 billion backlog can support earnings and free‑cash‑flow growth of around 20 % annually, potentially tripling EBITDA by 2028 ^[10].
Potential risks: Despite momentum, Siemens Energy remains exposed to quality issues at its wind‑turbine subsidiary, Siemens Gamesa. Simply Wall St warns that the stock may be slightly overvalued relative to fundamentals but acknowledges that record orders, net cash of €4.4 billion and investment‑grade ratings provide resilience ^[11].

In‑depth report

Background and recent share‑price rally

Siemens Energy AG emerged in 2020 from the spin‑off of Siemens’ Gas and Power division. The company is headquartered in Munich and operates four main segments—Gas Services, Grid Technologies, Transformation of Industry (decarbonising industrial processes) and Wind Power (Siemens Gamesa). In FY 2024 Siemens Energy generated €34.5 billion in revenue, with operating income of €2.125 billion and net income of €1.335 billion ^[12]. The group employed roughly 102,000 people in 2025 ^[13].

The stock’s trajectory over the past two years has been dramatic. After quality problems at the wind‑turbine unit caused a 35 % share‑price collapse in June 2023, the company launched a comprehensive turnaround plan. By mid‑2024, thanks to record orders in its gas and grid divisions, the shares had climbed more than 300 %, making Siemens Energy the best performer in the STOXX 600 and leading to a resounding recovery ^[14]. The rally continued into 2025, with the stock reaching €109.25 in February—a new record high ^[15].

Drivers behind analyst upgrades

1. Robust order growth and backlog

Siemens Energy’s latest results highlight exceptional demand for its core businesses. Third‑quarter orders surged 64.6 % year‑on‑year to €16.6 billion, beating analysts’ expectations ^[16]. Major offshore wind contracts contributed strongly, as did U.S. orders for gas turbines and power‑transmission equipment. Revenue rose 13.5 % to €9.7 billion, and profit before special items jumped to €497 million, generating net profit of €697 million ^[17]. The book‑to‑bill ratio of 1.70 pushed the order backlog to a record €136 billion, providing long‑term visibility ^[18].

Christian Bruch, Siemens Energy’s CEO, said during the earnings call that demand in the U.S. remains very strong and that import tariffs—although costing about €100 million in Q3—are manageable ^[19]. He added that tariffs mostly affect legacy service contracts and will fade as new contracts allow pass‑through pricing ^[20]. Bruch emphasised that the company expects to hit the upper end of its guidance range, which calls for 13–15 % revenue growth and 4–6 % profit margins before special items ^[21].

The strength of the order book underpins analysts’ bullish forecasts. Bank of America sees the backlog enabling 35 % compound annual growth in adjusted EBITA between 2025 and 2030, well above consensus estimates ^[22]. It expects margins to reach 14.7–17.2 % versus consensus of about 13 % ^[23].

2. Emerging dividend and capital‑allocation clarity

Siemens Energy needed a rescue package in late 2023 to fund its wind‑turbine overhaul. The German government provided an €11 billion facility, which came with a dividend ban. By June 2024, the company had replaced this facility with private financing, enabling the government guarantee and dividend restrictions to be dropped. Germany’s parliament lifted the dividend ban ahead of schedule, allowing Siemens Energy to resume payouts from fiscal year 2025 ^[24]. The company’s policy targets a payout of 40–60 % of net income and management expects to decide on whether to propose a dividend in November ^[25].

Analysts view the return of dividends as a critical catalyst. Bank of America believes clarity on dividends or share buybacks will support investor confidence and has therefore added Siemens Energy to its Europe Top Ideas list ^[26]. Berenberg similarly expects dividends to form part of capital‑allocation plans beginning in FY 2025 ^[27].

3. Turnaround progress at Siemens Gamesa

Siemens Energy has been burdened by heavy losses at Siemens Gamesa, its wind‑turbine subsidiary. Quality issues in onshore turbines and supply‑chain challenges in offshore projects resulted in billions of euros in provisions in 2023. The company has since reorganised the business, appointed new leadership and shifted toward selectivity in order intake. In Q3 2025 Siemens Gamesa’s orders jumped to €4.9 billion, although revenue declined slightly due to lower onshore volumes ^[28]. The division remains loss‑making, but management expects free‑cash‑flow breakeven by FY 2027 ^[29]. Bank of America and Berenberg both emphasise that improved visibility on the wind division’s turnaround is key to their bullish stance ^[30] ^[31].

Long‑term drivers: AI, electrification and grid modernisation

Global electricity demand is projected to surge as artificial‑intelligence workloads and massive data‑centre buildouts require vast amounts of power. Seeking Alpha highlights that Siemens Energy’s diversified segments—gas turbines, grid technologies, industrial decarbonisation and wind—make it a prime beneficiary. The platform forecasts that EBITDA could triple by 2028, with earnings and free cash flow growing about 20 % annually ^[32]. Exposure to nuclear‑power projects, including small‑modular reactors, broadens the growth pipeline ^[33].

Additionally, Europe and the United States are ramping up investments in transmission grids to integrate renewable energy and electrify industries. The U.S. Inflation Reduction Act and European Union programmes support new infrastructure. Siemens Energy’s Grid Technologies unit posted €4.2 billion in Q3 orders, a 23.9 % increase ^[34]. The Gas Services division, which supplies high‑efficiency turbines that can be converted to operate on hydrogen, received €6.2 billion in orders—almost half from the U.S. ^[35]. These trends illustrate how the company is positioned for long‑term secular growth.

Valuation and risks

Despite the strong results and high expectations, some analysts caution that the stock may be ahead of itself. Simply Wall St notes that Siemens Energy has delivered double‑digit annual growth in revenue and net income but says the share price could be slightly overvalued relative to fundamentals ^[36]. The site points out that the company’s net cash of €4.4 billion and investment‑grade ratings provide a cushion to navigate cyclical downturns ^[37]. However, if orders slow, margins fail to expand as projected, or the wind division struggles to reach profitability, the stock could retrace. Berenberg warns that margin normalisation at Siemens Gamesa and raw‑material cost pressures are potential headwinds ^[38].

Outlook

Consensus estimates now expect Siemens Energy to deliver free cash flow of approximately €4 billion in FY 2025 and net income up to €1 billion ^[39]. Achieving these targets would allow the company to reinstate dividends and further strengthen its balance sheet. With structural drivers like AI‑driven electricity demand, grid modernisation and industrial decarbonisation, the company is positioned to benefit from energy‑sector megatrends. Whether the share price continues to climb depends on the execution of the wind‑turbine turnaround, margin expansion in Gas and Grid, and management’s discipline in capital allocation. Investors should watch November’s capital‑markets day for updated mid‑term targets and potential announcements on dividends or share buybacks. Overall, Siemens Energy is evolving from a troubled wind‑turbine manufacturer to a diversified energy‑infrastructure champion at the heart of the green transition.

Electricity demand is absolutely growing, says Siemens Energy CEO