Siemens Energy Posts Record Q3 Results Driven by U.S. AI Boom and Middle East Demand
Siemens Energy reported record sales, profits, and orders during its fiscal third quarter, beating analyst expectations. The stellar performance was fueled by a robust expansion of artificial intelligence (AI) data centers in the United States and surging demand for gas turbines and grid equipment in the Middle East.
Financial Highlights and Stock Surge
Third-quarter sales climbed 18.5% to reach €11.45 billion ($13.20 billion), comfortably eclipsing analyst estimates of €11.22 billion. Furthermore, profit before exceptional items more than tripled to hit €1.62 billion, comfortably surpassing forecasts of €1.38 billion.
The company now anticipates reaching the upper end of its 10% to 12% profit margin target for 2026. This optimistic outlook sent its Frankfurt-listed shares up by 3% on Wednesday morning, extending an impressive bullish run that has seen the stock price surge nearly sevenfold over the past two years.
Wind Power Unit Returns to Profitability
The financial results marked a major turning point for the company, as its wind power division, Siemens Gamesa, posted its first quarterly operating profit in nearly four years. This long-awaited turnaround was largely attributed to successful cost-cutting measures and increased capacity utilization rates across its operations.