Q3 2026 Siemens Energy AG Earnings Call Transcript
Key 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.
- 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.
Please stand by. We are about to begin.
Good morning, ladies and gentlemen, and welcome to the Siemens Energy's Q3 Fiscal Year 2026 Analyst Call.
As a reminder, this call is being recorded.
Before we begin, I would like to draw your attention to the safe harbor statement on page 2 of the Siemens Energy presentation.
This conference call may include forward-looking statements. These statements are based on the company's current expectations and certain assumptions and are therefore subject to certain risks and uncertainties. At this time, I would like to turn the call over to your host today, Mr. Tobias Hang. Please go ahead, sir.
Thank you so much, Moritz. Good morning and a warm welcome to the Siemens Energy Q3 Results Analyst Call for fiscal year 2026.
We published our Q3 fiscal year '26 results this morning at 7 a.m. On our website. Our President and CEO, Christian Buch and our CFO Maria Ferraro are here with me. Christian and Maria will take you
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