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Siemens Energy
(OTC:SMERY)
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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.
Read all positive and negative factors
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.
Read all positive factors
Siemens Energy (SMERY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$147.62B
Dividend Yield0.09%
Average Volume (3M)291.05K
Price to Earnings (P/E)46.1
Beta (1Y)1.21
Revenue Growth16.83%
EPS Growth49.03%
CountryUS
Employees102,985
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.64
Shares Outstanding4,305,524,400
10 Day Avg. Volume267,834
30 Day Avg. Volume291,049
Financial Highlights & Ratios
PEG Ratio3.24
Price to Book (P/B)8.44
Price to Sales (P/S)2.23
P/FCF Ratio21.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.03
Revenue Forecast (FY)$51.07B
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)
| % 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.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Revenue
Reported Q3 revenue of EUR 17.9 billion, with management noting increased order intake and revenue versus prior periods.
Read all positive updates
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
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 41.84B | 39.08B | 34.47B | 31.12B | 29.00B | 28.48B |
| Gross Profit | 8.69B | 6.58B | 4.50B | 753.00M | 3.34B | 3.42B |
| EBITDA | 5.65B | 4.20B | 3.67B | -1.58B | 1.18B | 1.12B |
| Net Income | 2.69B | 1.41B | 1.18B | -4.53B | -467.00M | -453.00M |
Balance Sheet | ||||||
| Total Assets | 63.84B | 56.64B | 50.87B | 47.91B | 51.17B | 44.14B |
| Cash, Cash Equivalents and Short-Term Investments | 11.09B | 10.19B | 7.25B | 4.59B | 8.52B | 5.92B |
| Total Debt | 2.96B | 3.97B | 3.77B | 4.78B | 3.22B | 2.73B |
| Total Liabilities | 52.66B | 45.96B | 41.51B | 39.12B | 33.99B | 28.92B |
| Stockholders Equity | 10.70B | 10.30B | 9.07B | 8.50B | 17.19B | 14.96B |
Cash Flow | ||||||
| Free Cash Flow | 7.68B | 4.10B | 1.38B | 394.00M | 1.06B | 959.00M |
| Operating Cash Flow | 9.49B | 5.82B | 2.89B | 1.62B | 2.22B | 1.95B |
| Investing Cash Flow | -2.33B | -1.62B | 1.25B | -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
Neutral
35.19
Price Trends
35.09
Negative
37.16
Negative
34.91
Negative
Market Momentum
-0.44
Positive
48.92
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $84.87B | 32.77 | 12.69% | 1.48% | 4.82% | -1.66% | |
73 Outperform | $147.62B | 46.08 | 25.04% | 0.09% | 16.83% | 49.03% | |
72 Outperform | $77.31B | 28.23 | 21.89% | 1.48% | 2.93% | -8.06% | |
72 Outperform | $9.79B | 26.11 | 16.63% | 1.14% | -0.26% | 29.38% | |
70 Outperform | $258.69B | 26.98 | 83.40% | 0.18% | 12.85% | 738.05% | |
68 Neutral | $47.65B | 39.86 | 33.32% | 1.30% | 11.27% | 25.32% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
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.