Siemens Energy (1ENR) AI Stock Analysis

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Siemens Energy

(Milan:1ENR)

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Action:N/A

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Positive Factors

Profitability TurnaroundThe shift from substantial losses in 2023 to strong fiscal 2026 profitability demonstrates meaningful operational recovery. Higher revenue, margins, and net income improve internal funding capacity and provide a stronger base for sustaining investment and earnings growth over the coming quarters.

Negative Factors

Siemens Gamesa Cash DrainAlthough the wind unit has returned to break-even profitability, continued negative free cash flow means it still consumes group liquidity. This can dilute consolidated cash generation, constrain capital allocation, and leave execution of the turnaround dependent on further operational improvements.

Siemens Energy (1ENR) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 128.21B
Dividend Yield: 0.52%
Average Volume (3M): 8,879
Price to Earnings (P/E): 29.8
Beta (1Y): 1.10
Revenue Growth: 13.22%
EPS Growth: 165.20%
Country: Italy
Employees: 106,000
Sector: Industrials
Sector Strength: 63
Industry: Industrial - Machinery

Siemens Energy Business Overview & Revenue Model

Company Description

Siemens Energy AG operates as an energy technology company worldwide. It operates through Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa segments. The company provides gas and steam turbines, generators, and heat pump...

Siemens Energy Earnings Call Summary

Earnings Call Date:Nov 11, 2026(Q4-2026)|% Change Since:10.96%|Next Earnings Date:Feb 11, 2027

Earnings Call SentimentPositive

The call was strongly positive, supported by record fiscal 2026 results, substantial order and backlog growth, a major wind turnaround, stronger credit ratings, increased shareholder returns, and confident fiscal 2027 and 2030 targets. Management also highlighted significant long-term demand for electricity infrastructure and continued investment in capacity, productivity, supply chains, and AI. The main challenges were negative free cash flow at Siemens Gamesa, execution complexity around Transformation of Industry, offshore wind investment timing, a slower-than-expected hydrogen market, infrastructure vulnerability, geopolitical risks, and share-price volatility. Overall, the highlights significantly outweighed the lowlights.

Positive Updates

Record Fiscal 2026 Performance

Siemens Energy described fiscal 2026 as an absolute record year, with all guidance targets met or exceeded. Order intake rose to more than EUR 68 billion, about 18% above the prior year; revenue increased 15% to EUR 44 billion; profit margin before special items reached 12.4%, more than double the prior-year figure; posted net income was EUR 4.129 billion; and earnings per share was EUR 4.44.

Negative Updates

Negative Free Cash Flow at Siemens Gamesa

Although Siemens Gamesa reached a 0.1% profit margin and break-even, free cash flow remained negative. Management said it expects free cash flow to remain negative and committed to positive free cash flow in fiscal 2028.

Company Guidance

For fiscal year '27, Siemens Energy expects 14% to 16% in comparable revenue growth and profit margin before special items, net income of around EUR 5 billion and free cash flow of EUR 10 billion; the company expects a book-to-bill greater than 1 from now until 2030, and positive free cash flow at Siemens Gamesa is committed in fiscal year '28. By 2030, it is striving for annual revenue growth of 12% to 14%, a profit margin before special items of 20% to 22%, Gas Services margins between 25% and 27%, Grid Technologies margins between 24% and 26%, a Siemens Gamesa margin between 8% and 10%, and a Transformation of Industry margin between 14% and 16%; earnings per share are expected to increase by double digits year-on-year, and the company said it wants to triple its earnings.

Siemens Energy Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

IT:1ENR against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:NDX1	77Outperform	EUR 9.92B	19.99	35.08%	―	17.82%	358.52%
DE:SIE	74Outperform	EUR 211.15B	27.46	12.21%	1.90%	5.65%	-10.29%
DE:KSB	73Outperform	EUR 1.52B	97.82	0.13%	2.94%	1.66%	11.38%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DE:DUE	62Neutral	EUR 1.12B	5.31	-2.06%	4.86%	1.58%	―
DE:DEZ	55Neutral	EUR 2.33B	20.04	7.06%	1.88%	10.18%	77.83%

* Industrials Sector Average

Performance Comparison

IT:1ENR and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1ENR	Siemens Energy Ag	133.00	22.42	20.28%
DE:NDX1	NORDEX AG	41.98	14.76	54.22%
DE:DEZ	Deutz AG	9.57	1.97	25.92%
DE:DUE	Durr AG	16.46	-3.18	-16.20%
DE:KSB	KSB (0BQD)	902.00	-30.17	-3.24%
DE:SIE	Siemens Ag (UK)	281.70	56.15	24.89%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Siemens Energy AI Stock Analysis