STOCKS | Siemens Energy Sets FY2027 Net Profit Guidance Below Estimates, Plans Up to €9 Billion Buyback

Siemens Energy reported its fourth-quarter and full-year fiscal 2026 results on November 11. According to Sina Finance, the company expects fiscal 2027 net profit of about €5 billion, around 9% below analysts’ average estimate of €5.5 billion, and plans up to €9 billion in additional share buybacks by the end of fiscal 2030. Revenue in the July-to-September quarter reached a record €12.83 billion, above the €12.56 billion market estimate. Profit before special items was €1.54 billion, compared with expectations of €1.47 billion and €471 million a year earlier. Quarterly net profit was €1.36 billion, above the €1.25 billion estimate. New orders totaled €14.82 billion, below expectations of €15.47 billion, partly because of the timing of large-project order confirmations. The order backlog reached a record €164 billion. For fiscal 2027, Siemens Energy expects revenue growth of 14% to 16%, excluding foreign-exchange and portfolio effects, and a 14% to 16% profit margin before special items; the market average estimate is 14.7%. It forecasts growth of 24% to 26% in gas services and 22% to 24% in grid technologies. Siemens Gamesa’s wind business is expected to post a margin of 0% to 2%, below the 2.7% market estimate. The company also expects fiscal 2027 free cash flow before tax of about €10 billion, up from €8.8 billion in fiscal 2026. For fiscal 2030, Siemens Energy targets a 20% to 22% margin before special items and average annual revenue growth of 12% to 14%. Full-year fiscal 2026 profit before special items was €5.49 billion, slightly above the €5.41 billion estimate. Net profit rose to €4.13 billion from €1.69 billion in the previous fiscal year, a record. The company proposed raising its dividend to €2.30 per share from €0.70 for fiscal 2025, an increase of about 229%. It repurchased €3.1 billion of shares in fiscal 2026.