Siemens Energy Surges Toward Record Year Amid High Demand and U.S. Tariff Pressures

Siemens Energy is on course for what may become the most successful fiscal year in its history, driven by strong performance across nearly all divisions despite continued pressure from U.S. tariffs and a loss-making wind power unit. The Munich-based energy technology group reported a profit of €697 million in the third quarter, a sharp turnaround from the €102 million loss recorded in the same period last year. The improvement comes as the company benefits from record order intake of €16.6 billion, translating to 1.7 times its quarterly revenue of €9.7 billion. The order backlog also hit an all-time high of €136 billion, underscoring strong global demand. While a temporary positive effect worth roughly half a billion euros contributed to the third-quarter profit, Siemens Energy said the quarter would have still ended in the black without it—marking three consecutive profitable quarters. Cumulatively, profit for the first nine months of the fiscal year stands at €1.45 billion. Although slightly below last year’s figure, the comparison reflects a prior one-time gain of over €1.7 billion. The bulk of current profitability stems from gas and grid technology businesses, which are experiencing particularly strong growth. These segments are significantly outperforming last year’s results. In contrast, the wind power division—largely operated through Siemens Gamesa—continues to report deep losses, although recent major offshore contracts contributed to the order book. Siemens Energy has reaffirmed its full-year guidance and now expects net income of up to €1 billion, excluding special items. CEO Christian Bruch noted that all new orders currently being booked carry margins above the historical average, suggesting continued improvement in future earnings. The United States remains a critical market for the company, accounting for roughly a third of all new orders in the third quarter. However, legacy service contracts have left Siemens Energy exposed to rising costs from U.S. tariffs, which are projected to cost the firm €150 million this year. For newer deals, the company has generally been able to pass these costs onto customers. Employee numbers have also grown in tandem with business activity. Siemens Energy now employs 102,000 people worldwide—an increase of 3,000 from a year earlier—including 27,000 in Germany. An additional 1,500 jobs are expected to be created in Germany by the end of 2026, with hiring focused on engineering, services, and infrastructure development. Despite the ongoing challenges in wind energy and global trade dynamics, Siemens Energy is leveraging strong fundamentals, rising demand, and disciplined pricing to position itself as a key player in the energy transition.