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Siemens Energy (SMERY)
OTHER OTC:SMERY
US Market
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Siemens Energy (SMERY) AI Stock Analysis

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SMERY

Siemens Energy

(OTC:SMERY)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
$40.00
â–²(13.67% Upside)
Action:Upgraded
Date:08/09/26
The score is driven primarily by strong financial performance—especially the sharp improvement in profitability and very strong free cash flow—supported by a constructive earnings call with reaffirmed guidance and robust margins. Offsetting this are mixed technical momentum signals (negative MACD, high stochastic) and a demanding valuation (high P/E), despite the high dividend yield.
Positive Factors
Free Cash Flow Strength
Sustained high free cash flow (FCF ~€8.0bn, ~30% growth, FCF ~81% of net income) provides durable internal funding for capex, service investments, dividends and deleveraging. This improves balance-sheet flexibility and resilience to project timing swings over the medium term.
Negative Factors
Siemens Gamesa Cash Burn
Persistent cash outflows at the wind unit are a structural drag on group liquidity and capital allocation. Multi-year cash-breakeven guidance to 2028 implies continued support needs, raising execution and funding risk and reducing headroom for growth investments or faster debt paydown.
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Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained high free cash flow (FCF ~€8.0bn, ~30% growth, FCF ~81% of net income) provides durable internal funding for capex, service investments, dividends and deleveraging. This improves balance-sheet flexibility and resilience to project timing swings over the medium term.
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Siemens Energy (SMERY) vs. SPDR S&P 500 ETF (SPY)

Siemens Energy Business Overview & Revenue Model

Company Description
Siemens Energy AG is a global leader in energy technology, structured into four main divisions: Gas Services, Grid Technologies, Transformation of Industry, and Siemens Gamesa. Its Gas Services segment supplies essential equipment for both large-s...
How the Company Makes Money
Siemens Energy generates revenue primarily by selling large-scale energy equipment and by providing long-term services tied to that installed base. Key revenue streams typically include: (1) Equipment and project revenue: Sales of turbines, genera...

Siemens Energy Earnings Call Summary

Earnings Call Date:Aug 05, 2026
(Q3-2026)
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% Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call communicated a broadly positive operational and financial performance: strong revenue (EUR 17.9bn), materially higher profitability (profit before special items ~3x YoY and a 14.2% margin in Q3), meaningful free cash flow (EUR 7.2bn YTD) and a noteworthy wind turnaround (first positive quarter in 15). However, material near‑term and medium‑term challenges remain — notably Siemens Gamesa's continued cash burn and the need for offshore order momentum, slower‑than‑expected hydrogen market development, reservation/slot uncertainties, and competitive pressure from Chinese manufacturers. On balance the positive execution, cash generation and improving wind results outweigh the flagged challenges, but several risk items require monitoring.
Positive Updates
Strong Revenue
Reported Q3 revenue of EUR 17.9 billion, with management noting increased order intake and revenue versus prior periods.
Negative Updates
Siemens Gamesa Cash Burn and Liquidity Drag
Siemens Gamesa continues to burn cash: journalist cited a Q3 cash flow of minus EUR 518 million and approximately minus EUR 1.7 billion over nine months. Management expects cash‑breakeven for the wind business around 2028, indicating several more years to full cash recovery.
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Q3-2026 Updates
Negative
Strong Revenue
Reported Q3 revenue of EUR 17.9 billion, with management noting increased order intake and revenue versus prior periods.
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Company Guidance
Siemens Energy reaffirmed its guidance and expressed confidence while flagging normal quarter-to-quarter seasonality: Q3 revenue was EUR 17.9bn, order backlog EUR 162bn, profit before special items was roughly triple last year with a Q3 margin before SI of 14.2%, and management said it expects to stay toward the upper end of its margin range. Management noted sizeable project metrics (the Middle East represented roughly 30% of gigawatts in the quarter; data‑center‑related gas‑turbine capacity was about 20% of orders) and said reservation agreements are being discussed in the ~10–20% range (vs. a typical 10–15%). On wind, Siemens Gamesa’s backlog was cited at ~EUR 31bn, the unit is working toward operational breakeven (guidance referenced for 2026) while cash‑breakeven is targeted in 2028, and reported cash burn for the unit was cited at about EUR 1.7bn YTD (Q3 FCF ~‑EUR 518m). Group free cash flow guidance remains ~EUR 8bn for the year, with EUR 7.2bn realized after nine months (leaving roughly EUR 0.8bn to achieve) and continued Q4 capex expected.

Siemens Energy Financial Statement Overview

Summary
Overall fundamentals reflect a strong turnaround: TTM profitability is solid (gross margin ~20.8%, EBIT margin ~9.7%, net margin ~6.4%) and cash generation is a standout (TTM operating cash flow ~9.9B, free cash flow ~8.0B with ~30% FCF growth). Balance-sheet leverage is improving (debt-to-equity ~0.38 in 2025), but multi-year volatility (losses in 2022–2023 and equity inconsistency) keeps the score from being higher.
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
86
Very Positive
BreakdownTTMSep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue41.84B39.08B34.47B31.12B29.00B28.48B
Gross Profit8.69B6.58B4.50B753.00M3.34B3.42B
EBITDA5.65B4.20B3.67B-1.58B1.18B1.12B
Net Income2.69B1.41B1.18B-4.53B-467.00M-453.00M
Balance Sheet
Total Assets63.84B56.64B50.87B47.91B51.17B44.14B
Cash, Cash Equivalents and Short-Term Investments11.09B10.19B7.25B4.59B8.52B5.92B
Total Debt2.96B3.97B3.77B4.78B3.22B2.73B
Total Liabilities52.66B45.96B41.51B39.12B33.99B28.92B
Stockholders Equity10.70B10.30B9.07B8.50B17.19B14.96B
Cash Flow
Free Cash Flow7.68B4.10B1.38B394.00M1.06B959.00M
Operating Cash Flow9.49B5.82B2.89B1.62B2.22B1.95B
Investing Cash Flow-2.33B-1.62B1.25B-1.63B-1.12B-958.00M
Financing Cash Flow-4.73B-1.14B-2.26B-1.13B-568.00M-340.00M

Siemens Energy Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price35.19
Price Trends
50DMA
35.09
Negative
100DMA
37.16
Negative
200DMA
34.91
Negative
Market Momentum
MACD
-0.44
Positive
RSI
48.92
Neutral
STOCH
52.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMERY, the sentiment is Neutral. The current price of 35.19 is below the 20-day moving average (MA) of 35.28, above the 50-day MA of 35.09, and above the 200-day MA of 34.91, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 48.92 is Neutral, neither overbought nor oversold. The STOCH value of 52.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMERY.

Siemens Energy Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$84.87B32.7712.69%1.48%4.82%-1.66%
73
Outperform
$147.62B46.0825.04%0.09%16.83%49.03%
72
Outperform
$77.31B28.2321.89%1.48%2.93%-8.06%
72
Outperform
$9.79B26.1116.63%1.14%-0.26%29.38%
70
Outperform
$258.69B26.9883.40%0.18%12.85%738.05%
68
Neutral
$47.65B39.8633.32%1.30%11.27%25.32%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SMERY
Siemens Energy
33.81
11.56
51.94%
CMI
Cummins
554.76
155.33
38.89%
EMR
Emerson Electric Company
150.34
18.74
14.24%
FLS
Flowserve
75.19
19.69
35.47%
ROK
Rockwell Automation
426.08
91.17
27.22%
GEV
GE Vernova Inc.
951.04
308.94
48.11%
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.Date of analysis: Aug 09, 2026