Frankfurt, 2 December 2025 – Siemens Energy AG’s share price is holding close to record highs as fresh analyst upgrades, a massive share buyback plan and booming demand from data‑centre and grid investments continue to reshape the outlook for the German energy‑technology group.
On Tuesday morning, Goldman Sachs raised its price target for Siemens Energy from €124 to €139 while reiterating a “Buy” rating, arguing that the company’s “re‑rating story” is far from over thanks to ambitious 2028 targets and a new share buyback plan. [1]
At the same time, several German outlets and independent analysts are warning that the stock looks technically overheated after an extraordinary rally – even as fundamentals and guidance keep improving. [2]
Siemens Energy share price today: still near the top of the range
On Xetra, Siemens Energy AG (ticker ENR, ISIN DE000ENER6Y0) traded around €114–115 per share on the morning of 2 December 2025, up roughly 1–2% versus Monday’s close. [3]
Key datapoints:
- Last price (Xetra): about €114–115
- Day’s trading range so far: roughly €113.7–115.1
- 52‑week range: €41.81 (7 April 2025 low) to €118.15 (20 November 2025 high) [4]
- Market capitalisation: ~€96 billion
- 1‑year performance: about +124%
- Trailing EPS (TTM): ~€1.60 per share
- Trailing P/E: ~70x; forward P/E about 31x [5]
A morning note from finanzen.net highlights that Siemens Energy was among the strongest DAX names on Tuesday, with the share price up around 1.2% in early trade, just a few percent below its 52‑week high. The article also points out that the stock now trades about 172% above its 52‑week low of €41.81, underlining the scale of the turnaround rally. [6]
From crisis case to “Europe’s AI standout”
Just over a year ago, Siemens Energy was still dealing with a severe confidence crisis around its wind‑turbine subsidiary Siemens Gamesa, which forced the group to secure state‑backed guarantees in 2023. [7]
Fast‑forward to late 2024 and 2025:
- Bloomberg and specialist energy media now describe Siemens Energy as “Europe’s AI standout”, noting that the share price surged more than 300% in 2024 and has gained well over 100% again in 2025, driven by investor enthusiasm for the role of its grid and turbine technology in powering AI‑hungry data centres. TS2 Tech+2Energy Connects+2
- Year‑to‑date estimates from platforms such as Simply Wall St and Meyka point to share price gains around +120–130% in 2025 and roughly +150% over 12 months, with a multi‑year rebound of several hundred percent from the 2023 lows. TS2 Tech+1
The core of this re‑rating is not just sentiment: it’s a sharp improvement in earnings, cash flow and backlog, plus a much clearer capital‑allocation story.
FY2025 results: record backlog, margin recovery and dividend comeback
Siemens Energy’s fiscal year 2025 (ended 30 September) was the first clean “turnaround year” after the wind crisis. According to the company’s Q4 FY2025 earnings release and follow‑up coverage: [8]
Q4 FY2025 highlights
- Revenue: ~€10.4 billion, the first time quarterly sales broke the €10bn mark.
- Orders: ~€14.2 billion, driving the order backlog to a record €138 billion.
- Profit before special items: about €471 million, versus a loss the year before.
- Net income: roughly €236 million, compared with a prior‑year net loss.
- Free cash flow pre‑tax: around €1.3 billion.
Full‑year FY2025
- Revenue: ~€39.1 billion, up about 15% year‑on‑year.
- Orders: €58.9 billion, up nearly 20%, reflecting strong demand in gas and grid businesses.
- Profit before special items: around €2.36 billion (up sharply from 2024).
- Net income: ~€1.7 billion, versus €1.34bn in FY2024. [9]
Operationally, the Gas Services and Grid Technologies divisions were the stars, benefiting from:
- Robust demand for high‑efficiency gas turbines
- Massive investments in high‑voltage transmission, transformers and grid upgrades
- Rising electricity needs from data centres and AI workloads [10]
The weak spot remains Siemens Gamesa, which still posted a negative profit margin in 2025, though losses narrowed compared with the prior year and management expects the wind unit to break even over the medium term. [11]
Dividend: €0.70 per share – first payout in four years
Crucially for income‑oriented investors, Siemens Energy proposed a dividend of €0.70 per share for FY2025 – its first dividend in four years and the highest payout since the 2020 spin‑off from Siemens AG. The proposed dividend corresponds to about 50% of adjusted net income. [12]
At today’s share price, that equates to a modest dividend yield of roughly 0.6%, but analysts expect the dividend to rise significantly over the next few years as earnings grow. A finanzen.net piece notes a 2026 dividend estimate of around €1.47 per share, implying a much more meaningful yield if current prices hold. [13]
Capital Markets Day and 2028 targets: growth and margins pushed higher
At its November Capital Markets Day, Siemens Energy raised its mid‑term targets:
- Annual revenue growth now targeted in the “low teens” through FY2028 (previously ~10%).
- Profit margin before special items is now expected at 14–16% in 2028, up from a prior goal of 10–12%.
- For FY2026, the company guides to 11–13% comparable revenue growth and a margin of 9–11%, versus about 6% in FY2025. [14]
The Financial Times and other outlets highlight that these upgraded targets were well above what the market had been modelling, helping to push the stock sharply higher in mid‑November. [15]
Massive shareholder returns: €6bn buyback and up to €10bn by 2028
On 20 November 2025, Siemens Energy added a powerful new ingredient to the story: a share buyback programme of up to €6 billion to be completed by the end of fiscal 2028. [16]
According to Reuters and Siemens’ own ad‑hoc announcement: [17]
- The company plans to return up to €10 billion to shareholders by 2028.
- This includes up to €6 billion in buybacks, with the rest via dividends.
- The news triggered an 8%+ jump in the share price on the day and a new all‑time high.
- Siemens Energy will also invest around €2 billion into its transformer and switchgear plants to keep up with demand, especially from AI‑related data centres.
Independent analysis (for example from Meyka) emphasises that these capital returns, combined with higher guidance, are a key reason the market now values Siemens Energy close to €100 billion – closing in on peers like GE Vernova. [18]
Fresh analyst sentiment on 2 December 2025
Goldman Sachs: price target lifted to €139 (Buy)
The most important new piece of research today comes from Goldman Sachs:
- New price target: €139 (up from €124).
- Recommendation: Buy.
- Analyst Ajay Patel argues that Siemens Energy’s “re‑rating story can continue” because the 2028 targets presented at the Capital Markets Day are “significantly above expectations” and the buyback adds a fresh positive catalyst. [19]
German magazine DER AKTIONÄR frames the move as another sign that analysts are “outbidding each other with ever higher price targets,” noting that the stock is approaching its record high, supported by full order books and a boom in grid and gas technologies. [20]
Berenberg, Deutsche Bank, RBC and others
Goldman joins a group of upbeat brokers:
- Berenberg recently raised its target from €122 to €130, reiterating Buy and lifting its earnings estimates for Siemens Energy by up to 40% through 2028 on the back of strong demand and better margins. [21]
- RBC Capital sees fair value nearer €136 and rates the stock Outperform, citing a record backlog, expanded capacity and exposure to grid infrastructure. [22]
- Deutsche Bank has reportedly taken its target to around €135, also with a Buy rating, referencing similar themes of grid and turbine strength and capital returns. [23]
A finanzen.net analyst overview on 2 December shows a cluster of Buy ratings from Goldman, Berenberg, Deutsche Bank and Jefferies, alongside Neutral/Equal Weight views from Barclays and JPMorgan. [24]
Consensus: Moderate Buy, but with wide dispersion
For the U.S. ADR (SMNEY), MarketBeat reports a “Moderate Buy” consensus based on ten analysts:
- 1 Sell, 2 Hold, 4 Buy, 3 Strong Buy.
- 12‑month trading range: $49.96–133.46, with the ADR recently near the upper end.
- Valuation: a P/E around 67x and a PEG ratio near 0.5, reflecting high growth expectations. [25]
On the German side, the finanzen.net snapshot still shows a median price target around €103.8, below the current market price – a sign that the latest bullish upgrades (130–139) have not yet fully flowed through to every data provider. [26]
Today’s key commentaries: bullish fundamentals vs overheating fears
Several fresh analyses dated 2 December 2025 try to answer the same question many investors have: Is there still upside after such a spectacular rally?
1. Boerse Global: “Völlig überhitzt?” – overbought, but structurally strong
A piece on Börse Global titled “Siemens Energy Aktie: Völlig überhitzt?” highlights: [27]
- A Relative Strength Index (RSI) of around 85, deep in overbought territory.
- Year‑to‑date gains above +120%.
- A share price stretched far above the 200‑day moving average (over 29% premium).
The article argues that the latest pull‑backs are mainly profit‑taking after a “parabolic” move, not the result of bad news. Fundamentally, it stresses:
- The turnaround at Siemens Gamesa is progressing.
- The Grid Technologies segment is booming on AI‑driven electricity demand.
- Siemens Energy has repositioned itself as a key supplier for the energy transition and AI power infrastructure.
The conclusion: the chart is overheated, but a consolidation could create a new entry point for long‑term investors who believe in the story.
2. Stock World: record rally, near fair value vs consensus
Another German‑language article on Stock World, “Siemens Energy Aktie: Rekord‑Rally!”, emphasises that: [28]
- Q4 2025 revenue topped €10.4bn, with backlog at €138bn.
- Management wants to push the profit margin to 14–16% by 2028, almost 50% above prior goals.
- The wind unit Siemens Gamesa is steadily moving from “problem child to potential hope”, with positive cash flow targeted by 2028.
However, the piece also notes:
- The RSI around 85 signals technical overheating.
- With a recent close near €115, the stock was essentially trading in line with an average analyst target of about €114 (14 of 23 analysts rating it a Buy).
The implication: fundamentals look excellent, but much of the near‑term upside may already be priced in unless guidance is beaten again.
3. International takes: Strong Buy vs Hold at all‑time highs
Recent English‑language research adds nuance:
- A Seeking Alpha article titled “Siemens Energy: Durable Growth Across Gas And Grid” (mid‑November) rates the stock a Strong Buy with a $228 price target, arguing that structural growth in gas turbines and grid infrastructure underpins multi‑year earnings momentum. [29]
- Another piece, “Siemens Energy: At An All‑Time‑High, My Rating Remains Hold”, cautions that the risk‑reward looks more balanced after the rally and warns about valuation risk if growth stumbles. [30]
- A brand‑new Seeking Alpha note on 2 December, “Fundamentals Are A Lot More Solid Than I Thought”, reiterates a Strong Buy, citing robust demand, upgraded FY2028 margin guidance and accelerating capital returns. [31]
Meanwhile, AI‑driven outlets such as Meyka and TS2.Tech stress how Siemens Energy’s near‑€100bn valuation reflects investor confidence in long‑term electrification, data‑centre growth and energy transition trends, but they also flag execution, competition and valuation as key risks. [32]
Forecasts and key themes for 2026–2028
Bringing today’s research and company guidance together, the market is essentially betting on three big themes:
1. Structural demand for gas turbines and grid technology
- Orders for gas turbines jumped more than 40% year‑on‑year, with unit volumes roughly doubling, driven by energy security concerns and the need for flexible backup generation alongside renewables. [33]
- Investment in transmission infrastructure is booming as governments and utilities upgrade ageing grids and connect new offshore wind, solar and nuclear capacity.
- The data‑centre and AI wave is expected to keep grid demand elevated for years, with Siemens Energy a key supplier of transformers, switchgear and HVDC systems. [34]
2. Margin expansion and cash‑flow growth
Management’s 2026–2028 plan assumes: [35]
- Revenue growth in the low‑teens per year.
- Margin before special items climbing from about 6% in 2025 to 9–11% in 2026, and ultimately 14–16% in 2028.
- Net income rising towards €3–4bn by 2026, with strong free cash flow.
If those targets are met, current forward valuation multiples in the low‑30s could compress rapidly, even if the share price rises moderately.
3. Wind business repair and advanced‑energy options
- Siemens Gamesa still weighs on results, but losses are shrinking and the division is expected to generate positive cash flow by 2028. [36]
- New deals in advanced nuclear (e.g. with U.S. SMR developer Oklo) show Siemens Energy extending its reach into next‑generation clean‑power projects, providing additional optionality beyond gas and grid. [37]
A finanzen.net update today also notes that consensus expects EPS of around €3.62 in 2026, which, if achieved, would roughly double earnings versus today’s trailing level and help justify higher dividends and continued buybacks. [38]
Valuation check: priced for perfection?
With the stock trading at about 70x trailing earnings and roughly 31x forward earnings, Siemens Energy is clearly not a deep‑value play. [39]
Supporters argue that:
- High growth, rising margins and a vast €138bn backlog justify a premium.
- The €10bn shareholder‑return plan and first dividend in years underline confidence in cash‑flow generation. [40]
Sceptics counter that:
- Technical indicators (RSI in the 80s) signal short‑term overheating, making the stock vulnerable to pull‑backs. [41]
- Any disappointment in wind‑unit repair, grid orders, or global energy capex could trigger a sharp de‑rating from today’s lofty multiples. [42]
What today’s news means for investors
Taken together, the 2 December 2025 newsflow paints a clear picture:
- Goldman Sachs’ target hike to €139 reinforces a growing cluster of optimistic analyst views clustered between €130–139. [43]
- Fresh German‑language commentaries acknowledge that Siemens Energy’s stock is technically overheated, but still see structural upside tied to gas, grids and AI‑driven electrification. [44]
- International platforms emphasise a “Strong Buy” case based on the upgraded 2028 plan and large shareholder‑return package, but at least one prominent analyst maintains a Hold stance because of valuation risks at all‑time highs. [45]
For short‑term traders, the message is mixed: momentum remains strong, but the risk of a sharp correction after such a powerful rally is high.
For long‑term investors, Siemens Energy now represents:
- A leveraged bet on global electricity demand, AI/data‑centre build‑out, and the energy transition,
- Balanced by execution risks in large projects, ongoing wind‑business repair, and premium valuation.
As always, this article is for information only and is not investment advice. Anyone considering Siemens Energy AG stock should assess their own risk tolerance, time horizon and portfolio context, and, if necessary, consult a qualified financial adviser.
References
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