Siemens Energy triples dividend as Siemens Gamesa turnaround drives record profits

Siemens Energy has proposed to more than triple its dividend after posting record financial results for fiscal year 2026, underscoring a dramatic turnaround in its wind subsidiary Siemens Gamesa and broad-based growth across its business lines.

The company announced a proposed dividend of €2.30 per share for 2026, up from €0.70 in 2025, reflecting what it described as a "record year" for revenue and profit. Revenue rose 15.5% to €44.2 billion, while orders increased 18.8%, driven by heightened demand for gas turbines and grid technologies. The book-to-bill ratio reached 1.54, and Siemens Energy reported a global order backlog of €164 billion.

Profit margins more than doubled to 12.4% for the year, with the company setting an ambitious target of 20%-22% by 2030. The turnaround at Siemens Gamesa was central to this performance. After a loss of €1.4 billion in 2025, the wind business delivered a profit before special items of €8 million for 2026.

The results signal a significant recovery for Siemens Energy, which has faced challenges in recent years due to volatility in the wind sector and supply chain disruptions. The strong order growth in Gas Services—up 45.9%—and Grid Technologies—up 14.5%—positions the company to benefit from rising global electricity demand.

For investors, the tripling of the dividend underscores renewed confidence in the company’s growth trajectory and the sustainability of its turnaround strategy. However, risks remain, including potential fluctuations in energy demand and continued dependence on the performance of Siemens Gamesa, which has only recently returned to profitability.

Looking ahead, Siemens Energy aims to expand capacity at existing Gas Services and Grid Technologies sites to capture further growth opportunities. Achieving its profit margin target will depend on maintaining operational discipline and successfully navigating market volatility.