Siemens Energy AG Raises FY2026 Outlook on Strong Demand and Robust Q2 Performance
Siemens Energy AG Raises FY2026 Outlook on Strong Demand and Robust Q2 Performance
Siemens Energy AG has raised its fiscal year 2026 outlook following strong business momentum in the first half of the year and sustained global demand across key energy sectors. The company also released preliminary results for the second quarter of FY2026, highlighting significant growth in orders, profitability, and cash flow.
The company now expects comparable revenue growth of 14% to 16% for FY2026, up from the previous forecast of 11% to 13%. Profit margin before special items is projected at 10% to 12%, while net income is expected to reach around €4 billion. Siemens Energy also significantly increased its free cash flow pre-tax guidance to approximately €8 billion, compared with the previous estimate of €4 billion to €5 billion.
Among its business segments, Grid Technologies delivered the strongest momentum and now targets revenue growth of 25% to 27%, supported by continued expansion in global power infrastructure demand. Gas Services expects revenue growth of 16% to 18% with strong profitability, while Transformation of Industry maintained stable growth expectations. Siemens Gamesa also improved its revenue outlook to 3% to 5% growth while remaining at break-even profitability.
Preliminary second-quarter results showed group orders rising 29.5% year-over-year to €17.7 billion, significantly exceeding market expectations. Revenue increased 8.9% to €10.3 billion, while profit before special items reached €1.16 billion, representing an 11.3% margin. Net income rose to €835 million, and free cash flow before tax increased to nearly €2 billion.
Gas Services and Grid Technologies remained the primary growth drivers. Gas Services recorded a 32.4% increase in orders and generated €1.81 billion in free cash flow before tax. Grid Technologies achieved 41.5% order growth amid strong global grid expansion demand. Meanwhile, Transformation of Industry reported lower order intake but improved profitability, reflecting continued operational resilience.
