Siemens Energy posts record results on AI data centre boom, Middle East demand
Siemens Energy’s Financial Performance and Market Drivers
By Christoph Steitz and Tom Käckenhoff
Record Third-Quarter Results
FRANKFURT/DUESSELDORF, Aug 5 (Reuters) - Siemens Energy posted record high third-quarter sales, margins and orders on Wednesday, boosted by the expansion of AI data centres in the United States and power plants in the Middle East which fanned demand for its gas turbines.
Share Performance and Industry Comparison
Alongside U.S. rival GE Vernova, Siemens Energy has seen its shares rise nearly seven-fold over the past two years, helped by soaring demand for its gas turbines and grid equipment that help power data centres needed for AI.
Siemens Gamesa Division Returns to Profitability
Its struggling Siemens Gamesa division, long a millstone around the German group's neck, also made its first quarterly operating profit in nearly four years, Siemens Energy said, citing cost cuts and higher capacity utilisation.
CEO’s Statement on Wind Business
"The fact that our wind business has returned to profitability in a quarter for the first time since 2022 is a fantastic achievement by this team," Siemens Energy CEO Christian Bruch said in a statement.
Financial Highlights
Third-quarter sales rose 18.5% to €11.45 billion ($13.20 billion), beating a company-compiled poll of €11.22 billion. Profit before special items more than tripled to €1.62 billion, also exceeding the €1.38 billion poll estimate.
Siemens Energy now expects to hit the upper end of its 10-12% margin target in 2026.
Market Trends and Regional Demand
Middle East Demand Amid Geopolitical Tensions
In addition to data centre expansion, the Iran war has stoked demand for power equipment among Middle East governments, who are eager to secure power supply as the conflict lays bare the vulnerability of energy infrastructure.
Peer Comparison: GE Vernova
GE Vernova, Siemens Energy's closest peer in terms of products, last month also cited rising orders related to data centres as the main driver of quarterly results, but said it suffered from losses at its wind business.
Additional Information
($1 = 0.8672 euros)
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Emelia Sithole-Matarise, Friederike Heine and Varun H K)
