NOW we could see some leverage

Research evidence excerpt

NOW we could see some leverage

Industrials | Electrical Equipment & Multi-Industry

May 14, 2026

Siemens AG Alexander Virgo Gustavo Gonzalez 44 20 7847 3520 212-653-8998

SIE DE | €262.29 Alexander.Virgo@evercoreisi.com Gustavo.Gonzalez@evercoreisi.com

Outperform | Target Price/Base Case: €305.00 (from Kriti Vardineni

€300.00) 212-801-3882

Company Update Kriti.Vardineni@evercoreisi.com

Company Statistics We see underlying margin strength building through H2’26 and into

Dividend Yield 2.6% 2027 as automation recovery continues, SaaS transition completes,

Expected Total Return 14.3% M&A integration costs fall away to leave synergies, high-margin

Market Capitalization (B) €207 software and operating leverage to drive DI margins easily back above

52-Week Range €198.00 - €275.75

Fiscal Year End Sep 20% and SI margins sustainably above 20%. SI growth continues to

surprise across the businesses, echoing electrical supply chain

strength with N Am and D/C complementing growing utility investment.

The SHL spin can’t come soon enough (esp. given the drag on the rest

Earnings Summary

of the industrial business) but renewed €6bn buyback and reiterated

2025 2026E 2027E timeline gives comfort that we’re nearly there. We raise our ests 3 - 4%

Sales (M) Q1 €18,353 €19,139A .. across DI/SI adjEBITA and 50-75bps across organic growth, despite

Q2 €19,757 €19,756 .. offsetting cuts in MO/SHL, driving out PT to €305, Reiterate O/P.

Q3 €19,377 €21,089 ..

Q4 €21,427 €22,007 .. Revisiting the Outperform thesis and what happened in Q2:

FY €78,914 €81,990 €87,787

EBITDA (M) Q1 €2,926 €3,637A .. 1. SHL spin + simplified IA & software franchise: DI order

Q2 €3,725 €3,555 .. intake beat cons by c2%, largely driven by Software strength

Q3 €3,540 €3,468 .. (EDA, PLM, & Simulation all up DDs; ARR +11%).