Siemens Energy Projects Margin Growth Driven by AI Data Centers

Siemens Energy expects its profit margins to rise to between 14% and 16% by 2027, citing strong demand for grid equipment and gas turbines. This growth is primarily driven by the construction of data centers in the United States, with data center-related orders accounting for approximately €15 billion of the company's record €164 billion order backlog.

Chief Executive Christian Bruch stated that the company sees sufficient demand going forward, despite a global selloff in AI-related stocks and concerns over tighter regulation following the U.S. midterm elections.

In addition to its growth projections, the company announced a €9 billion share buyback and proposed increasing its 2026 dividend to €2.30 per share, up from €0.70. The company also confirmed that its Siemens Gamesa wind division has reached its break-even target after several years of restructuring.