Siemens Energy AG (ENR1n.DE): Manager Magazin report – potential TI separation helpful but rally likely reflects much of value creation

Research evidence excerpt

Siemens Energy AG (ENR1n.DE): Manager Magazin report – potential TI separation helpful but rally likely reflects much of value creation

Siemens Energy AG (ENR1n.DE)

18 June 2026 Citi Research

Siemens Energy AG

Valuation

We value Siemens Energy at EUR185 on a SotP basis, using our 2028 forecasts. We use 10x EV/EBITA to value Transformation

of Industry. At SGRE, we value the stock at 8x EV/EBITA. For Gas Services, we apply a 18.5x EV/EBITA multiple, a 30% discount

to GE Vernova. For Grid Technologies, we apply a 18.5x EV/EBITA multiple, similar to electrification peers. We discount the 2028

output back to 2027 at a 10% cost of equity, and round this to the nearest EUR.

Risks

We see the following as key downside risks to our target price:

1) Further deterioration in historic fleet reliability could drive further provisions in the SGRE service business.

2) Further issues from execution and cost inflation at Siemens Gamesa, both in Onshore and Offshore.

3) Weaker-than-expected orders. Project delays could drive slower-than-expected order intake. Furthermore, adverse policy

change, such as towards the role of gas turbines and fossil power, could also impact Siemens Energy’s ‘legacy’ businesses.

4) Weaker-than-expected cash flow. Siemens Energy’s project-heavy business model means significant potential for large

working capital movements, and it has built up a significant net contract liabilities balance thanks to recent strong order intake.

Weaker orders could thus lead to cash outflows.

We see the following as key upside risks to our target price:

1) Limited further deterioration in the SGRE service business, meaning reassurance among investors. There could also be

recourse to suppliers in key affected components.

2) Stronger-than-expected orders.