- Orders: EUR17.9 billion, a record, with a book-to-bill ratio of 1.57.
- Revenue: EUR11.4 billion, a record, up 19% year-over-year on a comparable basis.
- Profit before Special Items: EUR1.6 billion, more than tripled year-over-year.
- Profit Margin before Special Items: 14.2%, a record quarterly group margin.
- Net Income: EUR1.188 billion, up more than 70% year-over-year.
- Basic Earnings per Share: EUR1.28, up from EUR0.71 in the prior year quarter.
- Free Cash Flow Pre-Tax: EUR2.3 billion for the quarter; approximately EUR7.2 billion year-to-date.
- Order Backlog: EUR162 billion, an all-time high.
- Gas Services Orders: EUR10 billion, up 62% year-over-year.
- Gas Services Revenue: EUR3.8 billion, up 21% year-over-year.
- Gas Services Profit before Special Items: EUR648 million, with a margin of 17.3%.
- Grid Technologies Orders: EUR5.4 billion, up 28% year-over-year.
- Grid Technologies Revenue: EUR3.6 billion, up 29% year-over-year.
- Grid Technologies Profit before Special Items: EUR722 million, with a margin of 19.9%.
- Transformation of Industry Orders: EUR1.8 billion, up 32% year-over-year.
- Transformation of Industry Revenue: EUR1.5 billion, up 12% year-over-year.
- Transformation of Industry Profit before Special Items: EUR218 million, with a margin of 14.3%.
- Siemens Gamesa Revenue: EUR2.7 billion, up 14% year-over-year.
- Siemens Gamesa Profit before Special Items: EUR75 million, compared to a loss of EUR430 million in the prior year quarter.
Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Record orders of EUR17.9 billion and record revenue of EUR11.4 billion, with a book-to-bill ratio of 1.57 and backlog reaching an all-time high of EUR162 billion.
- Profit before special items more than tripled year-over-year to EUR1.6 billion, with a record group margin of 14.2%, up 910 basis points.
- Siemens Gamesa achieved its first profitable quarter since Q4 FY2022, with a positive margin of 2.7%, marking a major turnaround milestone.
- Gas Services and Grid Technologies delivered exceptional performance, with margins of 17.3% and 19.9% respectively, driven by strong demand and disciplined execution.
- Robust cash generation with year-to-date free cash flow pre-tax of EUR7.2 billion, supporting a EUR3.6 billion shareholder return program and credit rating upgrades.
- Capacity expansion projects are on track, with medium-sized gas turbine capacity increased to ~80 units annually and grid brownfield expansions coming online, supporting future growth.
- Strong demand environment with structural drivers, including 15 GW of gas turbine orders in the quarter and a promising pipeline for FY2027, with pricing discipline maintained.
Negative Points
- Siemens Gamesa's order intake declined year-over-year due to the absence of large offshore wind awards, with a book-to-bill ratio below 1.
- Q4 is expected to see a moderation in profitability and cash flow due to seasonality, including a weaker service environment in Gas Services and back-end-loaded CapEx.
- Offshore wind projects are expected to shift into FY2027, impacting year-over-year order comparisons in the current fiscal year.
- Free cash flow at Siemens Gamesa remained negative at EUR-518 million, reflecting ongoing project and milestone timing effects.
- The transition to the new brand 'Omterra' is in early stages, with potential uncertainties regarding the timing and impact of the trademark license agreement with Siemens AG.
- Currency headwinds, particularly a weaker US dollar, weighed on revenue by approximately 50 basis points year-over-year.
- The company expects Q4 order intake to be lower, with gas turbine orders trending towards 100 GW for the year, indicating potential quarterly volatility.
Q & A Highlights
Q: Can the strong margin progression seen in Gas Services over the past two years continue at these levels, or was the improvement front-loaded in fiscal 2025 and 2026?
A: Christian Bruch (CEO) stated there is no reason to believe the margin progression cannot continue, as the improving margin quality is embedded in the order backlog, which has grown quarter over quarter. He emphasized that execution and operational excellence are key to unlocking this potential, noting that project execution takes two to three years, providing a solid base for continued margin expansion. Maria Ferraro (CFO) added that while orders booked today carry higher margins than those in the past, some seasonality is still expected in Q4.
Q: What is the nature of the discussions for the fiscal 2027 pipeline, and are pricing and payment terms for slot reservation agreements still favorable?
A: Christian Bruch (CEO) confirmed that nothing is trending backwards for 2027. He cited examples like the German power plant program, which is currently in the reservation agreement phase and expected to convert to firm orders in 2027. He noted that while data center demand in the US has been strong, other regions like Asia and the Middle East are also coming up, supporting a positive view on 2027. Pricing trends remain intact.
Q: Given the new European Commission merger guidelines emphasizing corporate scale, do you think further consolidation is required in the wind industry to compete against Chinese competitors?
A: Christian Bruch (CEO) stated that while competition is aggressive, particularly in onshore wind, he does not see the regulatory environment changing to facilitate a "Wind Airbus" style consolidation. He differentiated between offshore and onshore, emphasizing the need to get offshore projects off the ground and focus on the most competitive setup for onshore, including the service perspective. He does not see a change in the regulatory environment at the moment.
Q: Are you considering adding more gas turbine capacity beyond the plans announced at the Capital Market Day, given that demand has exceeded expectations and peers are expanding?
A: Christian Bruch (CEO) reiterated that the company's strategy remains focused on expanding existing sites and strengthening the supply chain vertically, as communicated at the Capital Market Day. He emphasized driving productivity through robotics and AI on the shop floor to squeeze out additional output from the existing footprint, but sees no reason to change the overall capacity expansion plan.
Q: Can you provide more color on the segment margin guidance for the full year, particularly for Grid Technologies and the expectations for Q4?
A: Maria Ferraro (CFO) explained that Q3 was exceptionally strong, but Q4 is expected to see a moderation effect, with margins likely around the level of the first half. She cited typical seasonality in the service environment, particularly in Gas Services, and back-end loaded CapEx. She clarified that Q3 is by no means a peak, and margins are expected to expand further, with more details to come in November.
Q: What was the positive flow of about EUR1.1 billion in the "other" line of the cash flow statement, and what could reverse in Q4 to keep you on the EUR8 billion free cash flow target?
A: Maria Ferraro (CFO) explained that the EUR1.1 billion includes reservation fees and personnel-related accruals that have a profit impact but are not cash-effective. She noted that Q4 will have a heavy CapEx load and other puts and takes, but reiterated the "around EUR8 billion" guidance, adding that "around" also means it could be above that level.
Q: How are the slot reservations trending into Q4, and what is the expected delivery volume in gigawatts for the full year?
A: Christian Bruch (CEO) stated that the trend in reservation agreements is similar to the previous quarter, but it depends on when final decisions are made. He estimated full-year capacity delivery to be in the range of 15-16 gigawatts. He also noted good progress on the supply chain for forgings and castings, though teething pains will persist for several quarters.
Q: Has pricing for gas turbines come down quarter-over-quarter, and can you comment on the mix effects within the order intake?
A: Christian Bruch (CEO) firmly stated that pricing has not come down and the trend is intact. He cautioned against interpreting order intake divided by gigawatts as a pricing indicator, as it is a convoluted number combining frame size, frequency, scope, and the balance between new units and service. He confirmed no change in pricing compared to previous quarters.
Q: Is the lifetime service opportunity of around EUR400 million per gigawatt of backlog still the right number, given the increasing duration of service agreements?
A: Maria Ferraro (CFO) confirmed that the EUR400 million per gigawatt figure remains intact. She noted that the average duration of long-term service agreements has increased to 17 years, which is a positive development, but the overall service opportunity per gigawatt remains around the EUR400 million mark.
Q: Do you see the capacity expansion plans of competitors in the gas turbine market as orderly, and how do you view the dramatic expansion in the non-large gas turbine segment?
A: Christian Bruch (CEO) believes the capacity increases by major players are orderly, with a focus on productivity and short payback times. He acknowledged that smaller players are pushing orders in the mid-size turbine segment due to high demand, but expects this to balance out once total capacity is on stream. He emphasized the importance of staying at the forefront of technology to maintain competitiveness.
Q: Are you increasing EPC capabilities for HVDC projects, and is pricing still ahead of inflation in the Grid Technologies segment?
A: Christian Bruch (CEO) confirmed that capacity in the solutions and EPC part of the business has been increased, particularly in the US. He stated that pricing is plateauing on a high level, with opportunistic upside on the data center side where fast delivery is possible. The message remains consistent with previous quarters: pricing is intact and plateauing at a high level.
Q: How should we think about the Q4 fade in Gas Services orders, and will this be a one-quarter blip with several quarters of similar strength ahead?
A: Maria Ferraro (CFO) acknowledged that the EUR10 billion order quarter is not expected to be repeated every quarter, and Q4 will see a moderate soft landing. However,
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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