Siemens Energy Gains On Strong Q4, Positive Outlook, Dividend Hike, €9 Bln Buyback

(RTTNews) - Shares of Siemens Energy AG were gaining around 10 percent in the German trading after the company reported Wednesday significantly higher profit in its fourth quarter with revenue growth, and issued positive outlook for fiscal 2027 and ahead. The German energy technology firm also announced significantly higher dividend and up to an additional €9 billion share buyback program.

Christian Bruch, President and CEO of Siemens, said, "The Siemens Energy team delivered on all raised guidance targets, significantly increased earnings and achieved break-even in our wind business. This provides the foundation for the next phase of our transformation. Our 2030 targets set a clear direction and underscore our successful execution in a favorable market environment."

Looking ahead for fiscal 2027, the company expects net income of around €5 billion, double-digit earnings per share growth, adjusted profit margin of 14 percent to 16 percent, and comparable revenue growth of 14 percent to 16 percent.

The company said its margin target is ahead of plan as it was originally planned for fiscal 2028.

Further, for fiscal 2030, Siemens Energy projects double-digit earnings per share growth, adjusted profit margin of 20 percent to 22 percent, and comparable revenue growth of 12 percent to 14 percent, with revenue expected to be around 70 billion.

Beyond fiscal 2030, the company projects continues growth in earnings per share, margin and revenues.

In addition, Siemens Energy proposed a dividend of €2.30 per share for fiscal 2026, compared with €0.70 per share for fiscal 2025.

The firm also expanded its share buyback program and plans to repurchase additionally up to €9 billion of its own shares through the end of fiscal year 2030.

In the fourth quarter, net income attributable to shareholders surged to €1.257 billion or €1.47 per share from €168 million or €0.19 per share in the prior-year quarter.

Profit before special items rose to €1.540 billion from €471 million a year ago. Operating income increased to €1.671 billion from €283 million in the prior-year quarter.

Revenue rose 23 percent to €12.826 billion, being the highest quarterly revenue ever, from €10.428 billion a year ago. On a comparable basis, revenue increased 21.5 percent.

Both Gas Services and Grid Technologies achieved all-time high revenue levels.

Gas Services revenue increased 34.9 percent to €4.172 billion, and Grid Technologies recorded a 38.7 percent rise to €4.362 billion. Siemens Gamesa revenue grew 7.1 percent to €2.939 billion, while Transformation of Industry revenue declined 1.1 percent to €1.596 billion.

Orders increased 5.2 percent on a comparable basis to €14.818 billion. Order backlog increased to €164 billion at fiscal year-end from last year's €138 billion.

On Xetra, Siemens Energy shares were trading 9.70 percent higher, at €131.46.

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