Siemens Energy has reported strong financial results for the first quarter of fiscal year 2026, with revenue rising 12.8 percent to €9,675 million for the period ending December 31, 2025. Growth was recorded across all business segments, highlighting sustained demand for grid infrastructure, gas services, and digital energy solutions.
Grid Technologies and Gas Services drive growth
The company’s Grid Technologies segment led performance with 26.9 percent comparable growth, followed by Gas Services with 13.9 percent growth. Siemens Energy reported total orders of €17.6 billion, supported by record order intake in Gas Services, while both Grid Technologies and Transformation of Industry achieved double-digit order growth.
The strong order inflow pushed the book-to-bill ratio to 1.82 and lifted the company’s order backlog to a new high of €146 billion, reinforcing visibility into long-term revenue streams.
Siemens Gamesa shows early improvement
Siemens Gamesa reported Q1 FY2026 revenue of €2,355 million, slightly lower than €2,418 million in the prior-year quarter but moderately higher on a comparable basis. Offshore wind performance and growth in the service business helped offset weaker onshore activity.
Orders at Siemens Gamesa fell 33.7 percent to €1,556 million, mainly because the prior-year quarter included a €1.4 billion offshore order in the North Sea. Onshore orders received support from a €0.4 billion repowering project in the United States. The book-to-bill ratio declined to 0.66 and the order backlog stood at €34 billion. Siemens Energy expects Siemens Gamesa to reach break-even during fiscal year 2026.
Continued investment in energy transition
During the quarter, Siemens Energy invested €347 million in intangible assets and property, plant and equipment, while R&D spending reached €238 million. The company also spent €93 million on business acquisitions.
The company plans to increase investment in grid infrastructure, power generation capacity, and energy-efficient technologies to meet rising electricity demand.
Strategy centered on grid, gas and digital demand
Siemens Energy’s strategy focuses on capturing sustained demand for gas turbines and grid technologies, which remain major contributors to performance. The company is also benefiting from data center expansion and continued industrial digitalization, both of which are increasing power demand.
Improving the wind business remains a major strategic priority, with Siemens Gamesa showing early signs of progress toward break-even.
FY2026 outlook reaffirmed
Siemens Energy confirmed its full-year fiscal 2026 outlook:
Comparable revenue growth expected between 11 percent and 13 percent
Profit margin before special items forecast between 9 percent and 11 percent
Net income projected between €3 billion and €4 billion
Free cash flow pre-tax expected between €4 billion and €5 billion
Grid Technologies expected to lead segment growth at 19 percent to 21 percent
Siemens Gamesa targeted to reach break-even profitability
With record orders and strong demand from electrification and data center expansion, Siemens Energy is positioning itself for continued growth through fiscal 2026.
BABURAJAN KIZHAKEDATH
