Siemens Energy Reports Record Orders and Tripled Quarterly Profits

Siemens Energy AG reported a surge in quarterly profit to €1.62 billion for the period ending in June, up from €497 million the previous year. The company achieved record third-quarter orders totaling €17.9 billion, resulting in a total work backlog of €162 billion. This growth is primarily driven by strong global electricity demand for gas turbines and grid equipment, fueled by the expansion of AI-powered data centers, particularly in the United States.

The Gas Services division saw a 62% jump in orders for gas turbines. This financial recovery follows a period of instability in 2023, when the Federal Government of Germany provided credit guarantees to address quality issues within the company's wind-turbine unit. Notably, the wind business, Siemens Gamesa, returned to quarterly profitability for the first time in nearly four years and is expected to break even this fiscal year.

Siemens Energy expects its profit margin for the current fiscal year to reach the upper end of its 10% to 12% guidance range. While the company is evaluating the long-term setup and a potential spinoff of its Transformation of Industry business, it is currently prioritizing productivity improvements over expanding manufacturing capacity.