Siemens Energy posts record results on AI data centre boom, Middle East demand

Frankfurt-listed shares in the company ENR1n.F, which makes everything from gas and wind turbines to grid components and electrolysers, were 3% higher at 0600 GMT.

Third-quarter sales rose 18.5% to €11.45 billion ($13.20 billion), beating a company-compiled poll of €11.22 billion. Profit before special items more than tripled to €1.62 billion, also exceeding the €1.38 billion poll estimate.

Siemens Energy now expects to hit the upper end of its 10-12% margin target in 2026.

In addition to data centre expansion, the Iran war has stoked demand for power equipment among Middle East governments, who are eager to secure power supply as the conflict lays bare the vulnerability of energy infrastructure.

GE Vernova, Siemens Energy's closest peer in terms of products, last month also cited rising orders related to data centres as the main driver of quarterly results, but said it suffered from losses at its wind business.

Its struggling Siemens Gamesa division, long a millstone around the German group's neck, also made its first quarterly operating profit in nearly four years, Siemens Energy said, citing cost cuts and higher capacity utilisation.

"The fact that our wind business has returned to profitability in a quarter for the first time since 2022 is a fantastic achievement by this team," Siemens Energy CEO Christian Bruch said in a statement.

Siemens Energy ENR1n.DE posted record-high third-quarter sales, margins and orders on Wednesday, boosted by the expansion of AI data centres in the United States and power plants in the Middle East which fanned demand for its gas turbines.