Siemens Energy (1K) | Buy | Three super cycles secure prospects

研报英文原文证据摘录

Siemens Energy (1K) | Buy | Three super cycles secure prospects

Siemens Energy Buy | Target Price: EUR200.00

With this report we update forecasts to reflect revisions to company guidance and the latest

insights from the Gas Turbine and Grid Technologies markets. We reiterate our EUR200 12

month forward price target and the buy recommendation and consider the 13% sell-down since

the Q2 results as a buying opportunity.

Siemens Energy is a key beneficary of three capex super cycles that exhibit long and strong

duration. Firstly the build out of high voltage electrical grids, secondly rising power demand

from AI and from data centers and thirdly the wider trend in electrification.

Order backlog of EUR154bn post Q2 provides exceptional revenue and earnings visibility. In Q3 a

continuation of a book to bill ratio well above 1x should continue to support cash generation

and continued strengthening of the group's balance sheet. Future order prospects remain

strong for both Gas Services and Grid Technologies.

Beyond topline demand the conversion of the order backlog into structurally higher operating

margins is a second pillar of the investment case, with group adj EBITA margins expected to

grow every year between 2025 and 2030, subject to management execution.

The rising level of cash generation, supported by strong order intake, and the strengthened

balance sheet support a favourable capital allocation process and the ongoing share buyback

programme.

Updated guidance, provided with the Q2 2026 results confirmed the positive trend. For 2026 the

Group see 14%-16% organic revenue growth and a profit margin of 10%-12%. New mid-term

targets, to 2030, will be provided with the FY results in November 2026.