Siemens Energy AG

Siemens Energy said Q3 revenue was EUR 17.9 billion, with order intake and revenue both up. Profit before special items was triple the prior year, and the margin before special items was 14.2% in Q3. Management also said Siemens Gamesa delivered a positive result for the first time in 15 quarters, though the first nine months of the wind business still showed a small double-digit loss. For the full year, management left guidance unchanged and said it remains confident the company will land at the upper end of the profit margin range, while free cash flow guidance of EUR 8 billion was described as still robust given higher Q4 CapEx.

Christian Bruch framed the quarter as evidence that Siemens Energy’s long-term turnaround is working, pointing to operational excellence, strong electrification demand, and active portfolio management. He emphasized that the company is not chasing short-term optimization, but building durable customer relationships and investing for the long term. On strategy, he said the company is reviewing how to position both the electricity businesses and Transformation of Industry for the next 3, 5, and 10 years, but stressed that any changes would be step by step and not rushed.

Maria Ferraro did not speak directly in this transcript, but Bruch addressed several finance topics. He said reservation agreements are meant to function like down payments and must fit the balance sheet, and he noted the order backlog is EUR 162 billion in firm orders, not reservations. On cash flow, he said Q4 CapEx will be significant because the company continues investing in plants, but still described the EUR 8 billion free cash flow guidance as robust. For Siemens Gamesa, management reiterated that cash breakeven is still planned for 2028.

Analysts focused on the Middle East, data centers, reservation fees, Transformation of Industry, Siemens Gamesa cash burn, and possible wind industry consolidation. Bruch said Middle East demand is substantial and unchanged by the conflict, while data centers accounted for about 20% of gas turbine capacity orders, though not as dominant as some reports suggest. On TI, he said the business is being discussed internally and with employee representatives because both TI and the electricity businesses need capital, but no decision or timeline has been set. On wind consolidation, he said European antitrust and political issues make a 'wind Airbus' style merger unrealistic right now, and on Gamesa he pointed to delayed offshore projects, a slow onshore ramp-up, and the need for new orders beyond 2027/2028.