Siemens Energy AG

Siemens Energy said Q3 revenue was EUR 17.9 billion, with order intake and revenue both higher year over year. Profit before special items was triple last year’s level, and the margin before SI was 14.2% in Q3. Management also said Wind achieved a positive result for the first time in 15 quarters. For the first nine months, the company said it is at 12.6% margin and EUR 7.2 billion in free cash flow, while Siemens Gamesa free cash flow was minus EUR 518 million in the third quarter and minus EUR 1.7 billion over nine months. The order backlog was stated at EUR 162 billion, and management reiterated that full-year guidance was unchanged, with confidence toward the upper end of the profit margin range and EUR 8 billion in free cash flow for the year; cash flow breakeven for Siemens Gamesa remains planned for 2028.

Christian Bruch framed the quarter as evidence that Siemens Energy’s operational execution is improving, saying the company has spent the past five years building operational excellence, better engineering, productivity, and cost control. He stressed that the electricity cycle is a long-term ‘super cycle’ and said the company wants to keep adapting its portfolio to stay positioned for electrification growth. On portfolio strategy, he said any changes to Transformation of Industry or other businesses will be handled step by step, with no rushed decisions.

The call did not include a detailed CFO prepared remark, but management gave several financial points. Bruch said Q3 margin before SI reached 14.2%, profit before special items was triple last year’s level, and the company still expects full-year free cash flow of EUR 8 billion despite heavy Q4 capital spending. He also pointed to EUR 7.2 billion in free cash flow after nine months, noted that some cash flow is driven by project timing and CapEx, and said Siemens Gamesa cash flow breakeven is still targeted for 2028. He added that the EUR 162 billion order backlog consists of firm orders, not reservations.

Analysts pressed management on Middle East demand, reservation slots, data center-related gas turbine demand, Siemens Gamesa order timing and cash burn, and a possible carve-out of Transformation of Industry. Bruch said the Middle East contributed roughly 30% of the quarter’s gigawatt volume and remains an important market, while reservation payments are being negotiated calmly as down payments rather than ‘windfall profit’ optimization. On Gamesa, he said offshore projects are slipping because of timing and interest rates, onshore is ramping back up, and cash breakeven remains planned for 2028. On portfolio restructuring, he said discussions with employees and supervisory bodies are ongoing and no decisions have been made.