Siemens Energy AG (SMEGF) is a global leader in energy technology, uniquely positioned to benefit from the accelerating energy transition. The company’s Grid Technologies division is a key beneficiary of the massive investments in grid infrastructure needed to integrate renewable energy sources. With a record order backlog of €118 billion as of Q2 FY2025, the company has exceptional revenue visibility. Management has guided for mid-single-digit comparable revenue growth and an EBIT margin before special items of 3-5% for FY2025, with a clear trajectory towards 10% by FY2028. The recent spin-off of Siemens Energy from Siemens AG has allowed it to focus on its core businesses and improve operational efficiency.
Key catalysts over the next 12 months include continued strong order intake in Grid Technologies, margin improvement in the Gas Services segment, and the successful ramp-up of the Gamesa wind turbine business. The company is also well-positioned to benefit from the global push for energy security and the expansion of power grids for AI data centers. With a strong balance sheet and improving free cash flow, Siemens Energy offers a compelling investment case for those seeking exposure to the energy transition.
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