Siemens Energy shares jumped as much as 7.4% on Wednesday before paring gains to trade 6.6% higher, after the German power equipment maker tripled its dividend, pledged up to €9 billion in further share buybacks and reported record quarterly revenue. Reuters reported the shares up 7.6% at 0833 GMT.

The results capped a record fiscal 2026 for the company, whose gas turbines and grid equipment are in heavy demand as data centres across the United States drive a surge in electricity use.

Record quarter caps a record year

In the July to September quarter, profit before special items more than tripled to €1.54 billion from €471 million a year earlier, beating the analyst average of €1.47 billion. Revenue reached a record €12.83 billion, against expectations of €12.56 billion, while net income rose to €1.36 billion from €236 million in the same period last year, compared with €1.25 billion expected. Earnings per share came in at €1.49, against forecasts of €1.38.

Orders rose 5.2% on a comparable basis to €14.82 billion, although that missed the analyst average of €15.47 billion, which the company attributed to normal project phasing and the large-project nature of its business.

For the full fiscal year, which ended on 30 September, profit before special items was €5.49 billion, compared with expectations of €5.41 billion, while net income rose sharply to €4.13 billion from €1.69 billion a year earlier. Revenue advanced 15.5% on a comparable basis to €44.2 billion, with every segment contributing to growth.

Dividend triples and buybacks grow

Shareholders will share directly in the record year. Siemens Energy proposed a dividend of €2.30 per share for fiscal 2026, more than three times the €0.70 paid for fiscal 2025.

The company bought back €3.1 billion of its own shares during fiscal 2026 and said late on Tuesday that it would repurchase up to a further €9 billion of shares through fiscal 2030, on top of its current buyback programme of up to €6 billion.

Stronger margins promised for 2027 and 2030

For fiscal 2027, Siemens Energy expects comparable revenue growth of 14% to 16% and a profit margin before special items of 14% to 16%, up from 12.4% in fiscal 2026 and compared with the analyst average of 14.7%. Free cash flow before tax is forecast at around €10 billion, up from €8.80 billion in fiscal 2026.

The company forecast fiscal 2027 net income of around €5 billion, about 10% below the average analyst estimate of €5.5 billion, a shortfall the market largely looked through given the stronger margin outlook and shareholder returns. Gas Services is expected to deliver revenue growth of 24% to 26%, while Grid Technologies is forecast to grow by 22% to 24%. The wind unit, Siemens Gamesa, expects a margin of 0% to 2%, below the analyst average of 2.7%.

Looking further ahead, Siemens Energy is targeting compound annual revenue growth of 12% to 14% through fiscal 2030 and a profit margin before special items of between 20% and 22% for that year.

Data centres drive a record order book

The order backlog reached a record €164 billion, its strongest year-on-year growth since the company was listed after being spun off from Siemens in 2020. Data centre-related orders for gas turbines and grid equipment account for around €15 billion, or 9.1% of the backlog, chief executive Christian Bruch said.

“We are not yet seeing any fundamental change in demand or in project management,” Bruch told reporters when asked about the potential impact of tougher artificial intelligence regulation in the US on gas turbine orders. “I see sufficient demand going forward.” He added that some expectations for data centre growth may have been overblown, but said the company was seeing increased interest in wind power following last week's elections in the US.

Siemens Energy also said its Siemens Gamesa wind division had reached its closely watched break-even target, a milestone after years of losses and restructuring. The division reported a small profit in the quarter as the group continued to work through its troubled onshore wind business.

The results arrived after a global sell-off in artificial intelligence-related stocks, triggered by fears of tougher regulation following the Democratic Party's sweeping success in US midterm elections in the world's biggest market for AI data centres. Siemens Energy's record figures and upbeat outlook helped ease those concerns and lifted sentiment across European markets on Wednesday.