The energy technology group Siemens Energy has launched a billion-dollar share buyback program as part of its good business development.
The company announced on Thursday on Capital Markets Day that securities worth up to 6 billion euros will be bought back by the 2028 financial year (end of September).
This gave the DAX-listed shares a boost at midday; they briefly rose by eight percent and reached a new record high. Most recently, it was up 5.69 percent at 115.15 euros via XETRA and thus topped the list of winners in the leading index. The price of the paper, which did well last year, has more than doubled in the current year.
The stock received additional tailwind from strong NVIDIA figures from the night. The fear that has recently arisen among investors about exaggerations and the bursting of an “AI bubble” has been alleviated by the US chip company’s strong quarterly growth.
Siemens Energy is currently experiencing a massive surge in demand thanks to the global hunger for electricity. Business with gas turbines is running smoothly, as is network technology. The company, which was still in crisis a few years ago, is also benefiting from the AI boom and the associated construction of data centers. The management around CEO Christian Bruch had already significantly increased its medium-term goals again at the end of last week after a jump in sales and profits in the previous financial year. This had already caused euphoria among investors.
Bruch assumes that the market environment will continue to be strong in the future and expects significant increases in sales and profits in the coming years. Comparable sales are expected to increase by an average of high ten percent annually until 2027/28. Currency and portfolio effects are excluded. The adjusted profit margin should then reach 14 to 16 percent.
The high demand, which was reflected in records in sales, incoming orders and order backlog in the past financial year 2024/25, is helping Siemens Energy in several ways: On the one hand, the company can achieve good prices for its new orders. What is even more important for the high expectations for the future is that the increasing volume makes it possible to utilize factories better and increase efficiency, said Bruch at the annual press conference last Friday. And he was confident that the high level of utilization will remain high.
Siemens Energy can rely on full order books: In the last financial year, incoming orders rose by a good 17 percent to 58.9 billion euros. The order backlog increased by a good 12 percent to 138 billion euros at the end of September. In order to process the inventories, Siemens Energy is currently increasing its capacities – also in Germany.
This time the investor day will take place in the USA. Management then wants to inform investors about further details.
MUNICH/BERLIN (dpa-AFX)
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