Siemens Energy Stock: Ambitious Targets Fuel Impressive Rally

Siemens Energy's stock soared by 16.9% to €45.52 following the announcement of ambitious medium-term goals for fiscal year 2028. The company now aims for a profit margin of 10-12%, significantly surpassing previous forecasts, while targeting annual revenue growth in the high single to low double-digit percentage range. These optimistic projections are underpinned by a robust fourth-quarter performance in 2024, with order intake surging 42.3% to €15 billion, primarily driven by major contracts in Grid Technologies and Gas Services. Revenue climbed 16.6% to €9.7 billion, bolstered by strong performance in Siemens Gamesa's offshore business.

Navigating Challenges Towards Profitability

Despite ongoing hurdles in the wind energy sector, Siemens Energy has substantially reduced its losses, reporting a negative result before special items of €83 million. This marked improvement, coupled with the company's pivotal role in the energy transition, has boosted investor confidence. For fiscal year 2025, the energy giant projects revenue growth of 8-10% and a profit margin before special items between 3-5%. These targets reflect Siemens Energy's strategic positioning and its commitment to capitalizing on the growing demand for sustainable energy solutions.