Siemens Energy surges after raising mid-term goals despite Gamesa drag

Investing.com -- Siemens Energy shares soared more than 9% on Friday after the company delivered solid fourth-quarter results and set more ambitious mid-term targets, even as its onshore wind division continues to weigh on performance.

Chief Executive Christian Bruch said the group sees limited synergies between its struggling onshore business and its healthier offshore unit, underscoring ongoing uncertainty around the future of Siemens Gamesa. The wind division, still working through a quality crisis that erupted two years ago, reported a full-year operating loss of €1.36 billion.

Despite the drag from Gamesa, Siemens Energy raised its mid-term profitability goals and proposed its first dividend in four years, citing strong demand for gas turbines and grid technologies. The company reiterated its expectation that Gamesa will break even in 2026.

“2025 was a successful year. We delivered sustainable growth and significantly improved profitability, increasing the company’s value. For the first time in four years, we’re returning to dividend payments – reflecting our confidence in the business and our commitment to shareholders," said Christian Bruch, President and CEO of Siemens Energy AG.

"This success was hard-earned and didn’t come by chance. Given our positive outlook for the energy market, we are raising our mid-term targets through 2028."

Management now targets returns before special items of up to 16% by fiscal 2028, up from a previous goal of 12%, and upgraded its forecast for revenue expansion. The boom in AI-driven data-center construction has boosted orders for transformers and circuit breakers, while global electricity needs continue to support its high-margin gas turbines.

The company’s fourth-quarter revenue rose 9.7% to €10.4 billion. Profit at the grid technologies unit jumped 71%, with a margin near 15%. Gamesa again posted an operating loss in the quarter, pressured by low-margin onshore contracts, costs tied to offshore project ramp-ups and U.S. tariffs.

Looking ahead to fiscal 2026, Siemens Energy expects favourable sector trends to persist, led by rising electricity demand and infrastructure investment. The group forecasts comparable revenue growth of up to 13% and a profit margin before special items between 9% and 11%.