Energy technology: Siemens Energy: Profit without dividends and a price jump

Despite a billion-dollar profit and a significantly increased forecast, Siemens Energy will not pay any dividends or bonuses for the past financial year. This should not be done as long as the federal government’s counter-guarantees given last year are used, explained CEO Christian Bruch. They still want to get rid of these as quickly as possible, but it is not a matter of weeks. Chief Financial Officer Maria Ferraro said it would take a few quarters, but certainly not longer than 2026.

Siemens Energy had already reported its annual figures early on Tuesday evening after the energy technology group had raised its forecast for 2028 in an immediate report. For the first time since its spin-off from Siemens, the company was able to end a year in the black – even if it owes its annual profit of 1.3 billion euros primarily to profits from the sale of shares in Siemens India. Ferraro also expects “significant” income from the sale of a remaining share of the Indian business in the financial year that has started in October. This time, the company wants to reach the black numbers even without this influx of money.

The news from Siemens Energy was extremely well received on the stock market. Since hitting a low point at the end of October last year, the share price has now increased more than sevenfold. On early Wednesday morning alone, it was up more than 18 percent in Xetra trading. However, the signs have changed massively since last year. At that time, Energy was struggling massively with quality problems at its wind power subsidiary Siemens Gamesa and was stringing profit warning after profit warning. The problems have not yet been resolved, but the solution is in our own hands, said Bruch.

Gamesa had also posted significant losses in the past year, but the other – much better-performing – business areas and sales more than compensated for this. In 2024 there was tailwind from the energy markets and we expect the same for the coming years, said Bruch. This is also reflected in the orders, among other things. In the past financial year they had a volume of a good 50 billion euros and were therefore significantly higher than sales, which had risen to 34.5 billion euros.