Siemens Energy announced new mid-term sales growth and higher profitability targets for the fiscal year ending 2030, sending its shares higher.
The German energy equipment maker released new mid-term goals covering the next four years, setting benchmarks for revenue growth and a substantial earnings increase, and its share price rose accordingly.
In early European trading, Siemens Energy shares climbed 7.7% to 129 euros after strong results for fiscal year 2026; before this rally, the stock had traded largely sideways for the year.
The gain followed the company's announcement of targets to achieve a compound annual revenue growth rate of 12%–14% by fiscal year 2030, with a non-special items margin reaching 20%–22%, compared with just 12.4% in the fiscal year that ended September 30.
Analysts at JPMorgan said in a research note that Siemens Energy's growth outlook stands out sharply relative to other companies in the industry. Rising data center demand and increased electrification-related investment in the grid segment are benefiting the company.
For fiscal year 2027, the targets are revenue growth of 14%–16%, a non-special items margin of 14%–16%, and net profit of about 5 billion euros (equivalent to $5.58 billion).
Analysts said both sets of guidance, for 2027 and 2030, are above market consensus expectations.
Siemens Energy disclosed on Tuesday evening that, on top of its existing share buyback program of up to 6 billion euros, it will add up to an additional 9 billion euros in buybacks before 2030.
The company reported on Wednesday that fourth-quarter net profit surged to 1.36 billion euros, up from 2.36 billion euros a year earlier, while non-special items profit more than tripled.
Quarterly revenue hit a record high, with new orders also rising, driving the better performance.
At the end of the fiscal year, the company's order backlog reached a record high of 164 billion euros, offering investors a clear outlook for organic growth.
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