Siemens Energy has raised its financial outlook for fiscal year 2026 after reporting record quarterly orders, strong revenue growth, and significant profit improvement in the second quarter ended March 31, 2026. The company benefited from strong demand in the U.S., particularly for power infrastructure and data center-related projects, while Grid Technologies and Gas Services delivered robust order momentum.
Siemens Energy reported record quarterly orders of €17.7 billion in Q2 FY 2026, up 29.5 percent on a comparable basis from €14.4 billion a year earlier. Revenue increased 8.9 percent to €10.3 billion, while profit before special items rose to €1.16 billion from €906 million in the prior-year quarter. Net income climbed sharply to €835 million compared with €501 million last year.
The company’s order backlog reached a record €154 billion, supported by a strong book-to-bill ratio of 1.72. Free cash flow before tax improved to €1.98 billion from €1.39 billion, helped by customer advance payments linked to rising project orders.
Gas Services emerged as Siemens Energy’s largest business contributor during the quarter. Orders in the division surged 32.4 percent to €8.87 billion, while revenue increased 15 percent to €3.48 billion. The business recorded its highest quarterly order intake in history, driven by demand from U.S. data centers and power generation projects in Europe, including Poland. The division’s order backlog rose to €66 billion with a book-to-bill ratio of 2.55.
Grid Technologies also delivered strong performance with orders rising 41.5 percent to €7 billion and revenue increasing 12.3 percent to €3.07 billion. Growth was fueled by a major high-voltage direct current project in the Baltic Sea worth more than €1 billion, along with rising transformer demand from the U.S. The division’s order backlog reached €49 billion.
Transformation of Industry reported weaker order intake due to customer reluctance in the Middle East. Orders declined 15.7 percent to €1.25 billion, although revenue increased 5.4 percent to €1.42 billion. Profitability improved through productivity gains and higher-margin backlog execution.
Wind turbine business Siemens Gamesa showed continued operational recovery. Although orders remained relatively flat at €846 million, profitability improved substantially. The segment reduced its loss before special items to €44 million from €249 million a year earlier, supported by productivity improvements and cost efficiency measures. The company also secured initial orders for its new SG 7.0 turbine platform.
From a regional perspective, the Americas drove most of the company’s growth. Orders from the U.S. nearly doubled to €6.94 billion during the quarter, while U.S. revenue rose 45.7 percent to €2.75 billion.
Siemens Energy’s investment activities remained strong during the first half of FY 2026. Capital expenditure on property, plant, and equipment and intangible assets reached €711 million, while investments and financial asset purchases totaled €639 million.
Based on strong market demand and improving execution, Siemens Energy raised its FY 2026 guidance. The company now expects comparable revenue growth of 14 percent to 16 percent, up from the previous outlook of 11 percent to 13 percent. Profit margin before special items is projected at 10 percent to 12 percent, while net income is expected to reach around €4 billion. Free cash flow before tax guidance was also increased to around €8 billion.
BABURAJAN KIZHAKEDATH
