Siemens Energy Eyes Top of Outlook Range on Record Orders

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessSiemens Energy Eyes Top of Outlook Range on Record OrdersSiemens Energy AG sees strong demand for gas turbines and grid equipment pushing the profit margin in the current fiscal year to the upper end of its guidance corridor.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Siemens Energy AG sees strong demand for gas turbines and grid equipment pushing the profit margin in the current fiscal year to the upper end of its guidance corridor.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe German engineering firm reported record orders of €17.9 billion ($20.6 billion) during the third quarter, according to a statement Wednesday, beating analyst forecasts. Siemens Energy had already raised its outlook in April and now expects returns before special items toward the upper end of its guided range of 10% to 12%.The shares rose as much as 5.7% in early Frankfurt trading, taking gains this year to nearly 31%. Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againWhile demand for gas turbines and grid equipment was the key profit driver, the company’s wind business showed the strongest earnings improvement. Siemens Gamesa generated its first quarterly profit in nearly four years and said it is on target to reach break even this year.Siemens Energy is benefiting from sustained orders for components needed by power-hungry data centers, especially in the US. Its gas turbines are increasingly used in regions where grid constraints delay new connections.Customers are paying non-refundable reservation fees to secure scarce turbine production slots, which helped boost free cash flow last quarter, and the order backlog climbed to a record €162 billion. Investors are now focusing on how quickly the company can convert those orders into revenue.Whether electricity demand from data centers will continue to surge has become a key question for investors after bouts of volatility in technology stocks fueled concerns that spending on artificial intelligence infrastructure could slow eventually. Shares of Siemens Energy’s US competitor GE Vernova Inc. slumped last month after the company reported results that missed lofty expectations.Bloomberg Intelligence says:Siemens Energy’s 3Q suggests earnings quality is improving faster than consensus. Gas Services orders were more than 20% above estimates and included 12 gigawatts converted from reservations, easing concerns about backlog firmness. A 17.3% profit margin before special items shows the improved margin profile of the new-unit backlog is lifting profitability. Grid execution remained strong despite a modest profit miss, while Gamesa’s first quarterly profit since 2022 outweighs weak orders, which largely reflected absent offshore awards. — BI senior industry analyst Omid Vaziri.The company stopped short of announcing additional gas turbine manufacturing capacity, saying it remains focused on improving productivity instead. Chief Executive Officer Christian Bruch also said the manufacturer is confident of converting its order backlog into revenue.“We see market demand that is intact at this point in time,” Bruch said in an interview with Bloomberg Television. “We don’t see cancellations.”Siemens Energy is also weighing the future of its Transformation of Industry business. The unit employs about 17,000 people and makes compressors, steam turbines and energy storage systems.The company has said it’s been looking at the best long-term setup for the division, responding to a Manager Magazin report in June about a potential spinoff. It hasn’t made a decision on the future of the business yet.—With assistance from Lizzy Burden.(Updates with share price in third paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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