Siemens Energy to pay first dividend in four years, raises mid-term outlook

By Christoph Steitz and Tom Käckenhoff

BERLIN/DUESSELDORF (Reuters) -Germany's Siemens Energy plans to pay its first dividend in four years, it said on Thursday, also raising its mid-term outlook following strong demand for gas turbines, services and power transmission technology.

"This success was hard-earned and didn't come by chance," CEO Christian Bruch said, in a reference to years of restructuring and cost cuts in the wake of a major quality crisis at the group's wind turbine division.

Since then, Siemens Energy has benefited from a surge in demand for energy equipment -- partly on the back of global AI investments that include power-hungry data centres -- that has helped make it Germany's sixth most valuable listed firm.

Siemens Energy proposed a dividend of 0.70 euros ($0.82) per share for the fiscal year that ended in September, the highest payout since the company was spun off from former parent Siemens AG in 2020 and also beating the 0.56 euro LSEG poll.

DATA CENTRES DRIVE ENERGY DEMAND

Frankfurt-listed Siemens Energy shares turned positive after the news and closed 2.5% higher.

As a result of a more optimistic view of the global power equipment market, Siemens Energy now expects sales to grow by at least 10% a year in the 2025 to 2028 period, while the profit margin before special items will rise to 14% to 16% in 2028.

The group, which makes everything from gas and wind turbines to electrolysers and power transmission equipment, had previously expected average annual sales growth in the high single-digit percentage range until 2028, with a margin of 10%-12% that year.

Siemens Energy said electricity demand and the need to upgrade and expand power grids should continue to rise, also driven by "the ongoing digitalization of industry and the share of renewable energies as well as, in particular, the strong growth of data centers".

For 2026, Siemens Energy -- which competes with GE Vernova and Mitsubishi Heavy Industries -- expects a profit margin before special items of 9-11%, up from 6% in 2025.

Fourth-quarter sales came in at 10.4 billion euros, driven by the firm's power grid division that had its highest quarterly revenues to date and supported a new order backlog record of 138 billion euros.

($1 = 0.8575 euros)

(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Lisa Shumaker and Diane Craft)