Siemens Energy Targets 20% to 22% Margin by 2030 After Record Year on Grid and Gas Demand

The Munich-based company reported net income of €4,129 million for the year to September 30, up from €1,685 million, on revenue of €44.2 billion, up 15.5% on a comparable basis, according to its earnings release. Profit before special items rose to €5,486 million from €2,355 million, a margin of 12.4%. Orders reached €68.1 billion, 1.54 times revenue, and the order backlog ended the year at a record €164 billion.

The results put Siemens Energy among the clearest industrial beneficiaries of the power buildout around artificial intelligence. In its release the company said electricity demand will rise partly because of "new large consumers such as data centers," and linked the AI-driven data centre build-out, especially in North America, to more investment in power generation and grid infrastructure. It said data centres are supporting demand for its gas turbines.

Grid and Gas Carry the Group

Grid Technologies grew revenue 26.2% on a comparable basis at a margin of 18.9%, and Gas Services grew 20.3% at a margin of 16.4%. Both units booked record quarterly revenue in the fourth quarter. Transformation of Industry grew 3.4% at a 12.1% margin. Siemens Gamesa, the wind business, grew 6.7% and broke even with a margin of 0.1%, and posted a positive quarterly result for the second quarter running.

Chief Executive Christian Bruch said the company had "delivered on all raised guidance targets" and "achieved break-even in our wind business," adding: "This provides the foundation for the next phase of our transformation."

Fourth-quarter revenue was a record €12.8 billion, up 21.5% on a comparable basis, while orders rose 5.2% to €14.8 billion. Quarterly net income was €1,360 million against €236 million a year earlier, helped by €184 million of special items, mainly from reversing impairments on aeroderivative gas turbine assets.

The 2027 Guidance

For fiscal 2027 the company expects comparable revenue growth of 14% to 16%, a margin before special items of 14% to 16% and pre-tax free cash flow of about €10 billion, up from €8,799 million in fiscal 2026. The forecast excludes charges from future legal and regulatory matters.

The segment guidance shows where the growth is expected to come from. Gas Services is forecast to grow 24% to 26% at an 18% to 20% margin, and Grid Technologies 22% to 24% at a 21% to 23% margin. Transformation of Industry is expected to grow 0% to 2%, and Siemens Gamesa revenue to shrink by 1% to 3% with a margin of 0% to 2%.

Shareholders are set to receive more cash. Siemens Energy proposed a dividend of €2.30 a share, up from €0.70, equal to about half of net income adjusted for extraordinary non-cash effects, and it bought back €3.1 billion of shares during fiscal 2026. A day before the results it said it would add up to €9 billion of further buybacks through fiscal 2030.

Alongside the 2030 margin goal, the company is targeting compound annual comparable revenue growth of 12% to 14% between fiscal 2026 and fiscal 2030.