Siemens Energy raised its midterm profitability targets as the company’s order backlog reached record levels on the back of demand for AI data centre components and gas turbines.
Shares in the company rose as much as 11 per cent after the company said it was aiming for annual revenue growth in the “low teens” through 2028, up from its previous target of about 10 per cent.
The company said it also expected operating margins in the range of 14-16 per cent in 2028, up from the previous target of 10-12 per cent.
Siemens Energy has bounced back from a difficult period in 2023 when it had to turn to the German government in response to problems at its wind unit.
The company has seen its order backlog balloon as demand for electricity generation has grown, driven in part by the rapid expansion of capacity for AI data centres.
Chief executive Christian Bruch said the data centre business “was an extremely interesting market for us in 2025, and it will remain so going forward”.
“What is so successful at the moment is particularly if you can react fast, [it] allows you a super pricing element,” he said.
However Bruch stressed that demand for energy to power artificial intelligence was only a part of Siemens Energy’s business. “The majority of our customers aren’t data centres,” he said.
The excitement was “over proportionally reflected” in the company’s share price, which has more than doubled since the start of the year.
For the business year to September, Siemens Energy saw revenues rise 15 per cent to €39.1bn, with all units contributing to growth. Incoming orders totalled €58.9bn, taking the outstanding total to a record €138bn.
The company reported operating margins of 6 per cent on operating profit of €2.4bn.
Bruch said 2025 was “really a gas year” for the company, as the demand for flexible electricity generation capacity grew.
Incoming orders to the company’s gas unit were up by 43 per cent on a year to €23bn. The company had sold 194 turbines in the past year, double the number it sold the year before.
Siemens Energy’s wind energy unit continued to struggle but it expects the wind business to break even this year after narrowing its operating loss to €1.4bn from €1.8bn.
