Siemens Energy reported record third-quarter orders, revenue, and profitability as electricity demand from data centres and major power projects strengthened its order book.
Orders reached €17.9bn during the three months to 30 June, helping to lift the group’s backlog to €162bn. Revenue increased by 18.5% on a comparable basis to €11.45bn, while profit before special items rose to €1.62bn from €497m a year earlier.
Net income reached €1.19bn, and free cash flow before tax increased to €2.32bn. The performance prompted the company to indicate that it expects to finish the financial year towards the upper end of its margin guidance.
Christian Bruch, president and chief executive of Siemens Energy, said: “Global demand for electricity – and consequently for our products – remained strong in the third quarter. We delivered record orders, revenue, and profitability, while continuing to improve efficiency. 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”.
Demand was particularly strong for gas services linked to US data centre development and for power generation projects in the Middle East and Asia. The order pattern shows how investment in artificial intelligence is spreading beyond software and semiconductor companies into turbines, grids, substations, cooling systems, and other physical infrastructure.
Siemens Gamesa, the group’s wind business, recorded its first profitable quarter since the 2022 financial year. The division has been responsible for substantial losses and operational difficulties in recent years, including quality problems associated with some turbine platforms.
Although one profitable quarter does not complete the turnaround, it represents a significant change in the group’s earnings profile. Siemens Energy expects the wind business to reach break-even during 2026, reducing one of the largest sources of uncertainty surrounding the company.
The group now forecasts comparable revenue growth of between 14% and 16%, a profit margin before special items of between 10% and 12%, net income of approximately €4bn, and free cash flow before tax of around €8bn for the full year.
Electricity infrastructure is becoming a strategic constraint on digital investment. Data centres require dependable, high-capacity power, while new AI workloads can consume substantially more electricity than conventional computing. Projects announced by technology companies increasingly depend on grid connections, generation capacity, planning approval, and equipment availability.
As that dependence grows, value is spreading across a wider industrial chain. Semiconductor and cloud providers remain central, but energy equipment manufacturers, engineering companies, utilities, and construction groups are gaining from the physical investment needed to support computing demand.
The financial and infrastructure risks surrounding rapid AI investment include the possibility that capital deployment runs ahead of sustainable returns. Siemens Energy’s order book reflects the industrial effect of that spending, since suppliers of essential infrastructure are already receiving major commitments regardless of how quickly individual AI services become profitable.
Data centres are only one source of pressure. Electrification across transport and industry, replacement of ageing assets, renewable generation, and national energy security programmes are also increasing demand for grid and generation equipment.
Those priorities frequently compete for the same engineering capacity and manufacturing slots. Large transformers, turbines, switchgear, and grid components require specialist production, and several equipment categories already face extended lead times.
A backlog of €162bn provides unusually strong revenue visibility, although it also creates significant execution risk. Long-duration contracts must be delivered against changing labour, materials, currency, and financing conditions, and delays or cost overruns can reduce the profitability of orders that initially appeared attractive.
Supply chain discipline will remain central as output expands. Increasing production too quickly can create quality problems, while insufficient investment risks leaving demand unfulfilled and customers waiting for equipment needed to complete larger projects.
The improved performance at Siemens Gamesa must also be sustained while wind developers manage higher financing costs, planning delays, inflation across their supply chains, and pressure on project returns. Manufacturers have sought stronger contractual terms after earlier agreements became uneconomic as costs increased.
Siemens Energy enters the final quarter with substantial commercial momentum and a broader improvement across its divisions. Its performance also confirms that AI investment is generating an energy and industrial infrastructure cycle, with returns increasingly accruing to companies capable of supplying reliable physical systems at scale.
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