Siemens Energy Stock: Surging Orders Fuel Optimistic Outlook

Siemens Energy reported a remarkable 42.3% increase in order intake, reaching €15 billion in the fourth quarter of 2024. This surge was primarily driven by major contracts in the new equipment business, particularly in Grid Technologies and Gas Services. Revenue climbed 16.6% to €9.7 billion, with Siemens Gamesa's offshore business significantly contributing to growth. Despite a negative result before special items of €83 million, the company substantially reduced its losses compared to the previous year. The successful achievement of targets across all business areas underscores Siemens Energy's leading position in the energy transition.

Ambitious Targets for 2028

In light of its positive performance, Siemens Energy has revised its medium-term goals upward. The company now aims for a profit margin of 10-12% by 2028, a notable increase from its previous forecast. Annual revenue growth is expected to range from high single-digit to low double-digit percentages. For the 2025 fiscal year, Siemens Energy anticipates revenue growth of 8-10% and a profit margin before special items between 3-5%. These optimistic projections have resonated well with investors, as reflected in the stock's significant pre-market gains.