Global Alternative Energy Mid-26 Outlook Presentation

Research evidence excerpt

Global Alternative Energy Mid-26 Outlook Presentation

Key talking points

• We are constructive on our alternative energy coverage with Siemens Energy, Vestas and Prysmian key

Overweights. Siemens Energy is on our Analyst Focus List. Both Vestas and Prysmian are on positive catalyst

watch for their Q2 results.

• The positive outlook for Energy demand and electrification bodes well for our coverage. BNEF predicts a very

high level of global ex-China wind installations growth in 2026 and beyond.

• The outlook for long-term gas turbine demand is positive, supported by replacement and data center demand.

Investors have coalesced around a c100GW+ of combined order intake across the gas turbine players in FY26,

flattish yoy. Siemens Energy guided 110-120GW annual order level in the coming years during our last month

Industrial conference.

• We expect continued growth in Transmission investments, particularly in the US and Europe, which is relevant

for Siemens Energy and cable companies. Renewable curtailment in several countries were all time high in 2025,

supporting need for large grid investments.

• The outlook for the European wind sector is positive, led by Germany, where other markets should also see

growth.

• Fundamentals for wind in the US and Canada are positive but uncertainty related to section 232 investigations is

still impacting customers decisions in the US.

• The ongoing Middle East crisis is positive for medium-term renewable energy demand as energy security should

top governments agenda again.

• Wartsila reported a record order intake for H1 in its Energy business, but capacity constraints and higher base

drove tapering of demand outlook to stable demand in next 4 quarter vs. past 4 quarter (previously higher

demand in next 4 quarters).