Siemens Energy AG: Energy technology for the global transition

Brief summary for investors: Siemens Energy is a leading global provider of energy technology, encompassing both conventional power plant technology (Gas & Power) and renewable energy solutions (Siemens Gamesa). The company is centrally positioned for the global energy transition.

Development The historical share price performance has been characterized by significant fluctuations, which were heavily influenced by the results of its wind power subsidiary, Siemens Gamesa. After persistent losses, which reached a low point in fiscal year 2023 with a net loss of EUR -4.5 billion, the company is showing a significant operational recovery. The final quarters (Q2-Q4 2025) have consistently recorded positive net results and strongly positive free cash flow. The share price reflects this recovery and has recovered from lows below EUR 10 (end of 2023) to over EUR 90 (August 2025).

Opportunities:

• Energy Transition: Strong demand for gas and steam turbines as a bridging technology, as well as for solutions for grid stability and transmission, is driving the core business.
• Political Support: Global initiatives for energy security and decarbonization (e.g., Inflation Reduction Act, EU Green Deal) are supporting the portfolio.
• Operational Turnaround: The latest quarterly figures show a significant improvement in profitability (EBIT margin of ~9.3% in the last quarter) and very solid cash generation.

Risks:

• High Debt: A debt-to-equity ratio of over 4 indicates continued high debt and represents a financial risk.
• Liquidity: A current ratio below 1 (0.90) and a low quick ratio (0.62) indicate potential bottlenecks in short-term liquidity.
• Project Risks: The complex large-scale project business remains vulnerable to cost overruns and delays, particularly in the offshore wind sector.

Additional Notes: Despite the recent recovery, profitability metrics (ROE: 5.9%, ROA: 1.1%) remain modest relative to market capitalization. The strong cash generation of recent quarters must be sustained to consolidate the balance sheet.

Conclusion: Siemens Energy is demonstrating a remarkable operational turnaround, driven by strong demand in the context of the energy transition. While recent performance and strategic positioning are promising, the investment remains a higher-risk exposure within the sector due to the strained balance sheet situation (high debt, weak liquidity metrics). Further deleveraging is critical for long-term stability.

Read full AI analysis