TI in the spotlight: Company Update

Research evidence excerpt

TI in the spotlight: Company Update

Deutsche Bank

Research

Rating Company Date

Buy Siemens Energy 18 June 2026

Company Update

Europe

Germany

Reuters Bloomberg Exchange Ticker Price at 17 Jun 2026 (EUR) 161.74

ENR1n.DE ENR GR GER ENR1n

Price Target (EUR) 200.00

Capital Goods

52-week range (EUR) 187.62 - 84.40

Diversified / Conglomerates

TI in the spotlight

Valuation & Risks

Gael de-Bray, CFA

According to Manager Magazin (June 18), Siemens Energy is exploring the

Research Analyst

separation of its "Transformation of Industry" division (TI, €5.7bn revenue, 14% +33-1-4495-6562

of group) through an IPO, the spin-off of a majority stake, or a merger with a

competitor. If completed, we believe the move would benefit shareholders; it Nabil Najeeb

would allow Siemens Energy to fully refocus on electrification markets, eliminate

+44-20-754-17410

its Oil&Gas/petrochemical exposure, and mechanically improve its margin

profile (we estimate by at least +50bps). It would also simply the group's reporting John Kim

structure and make its profile even more comparable to that of GEV, potentially Research Analyst

further reducing the gap between the two companies' valuation multiples. We rate +44-20-754-18699

the stock Buy. Seetharaman Ramakrishna

Research Associate

Potential upside to TI margins and valuation

We believe the TI business area would likely have more opportunities to grow as a

Price/price relative

standalone company as its capex and R&D plans would no longer face competition

internally with Siemens Energy's Power and Grid divisions. Manager Magazin 200

report indicates that company documents describe three scenarios for the division: 100

1/ "budget as-is" scenario, where revenue is projected at €7.6bn and profit at €1.1bn 0