Siemens Energy Books Record Gas Turbine Orders on Power Boom

Siemens Energy AG is on track for another year of rising revenue as surging electricity demand continues to bolster sales of its gas turbines and power-grid products according to Bloomberg. Group orders jumped by over a third to €17.6 billion ($20.9 billion) in the fiscal first quarter, the German manufacturer said Wednesday. Its gas business reported its highest-ever order intake.

The company’s gas business delivered its strongest quarter ever in terms of order intake, with 102 gas turbines booked. A total of 12 gigawatts were converted from existing reservation agreements, and 12 gigawatts of new reservations were added. The US accounted for 40% of gas turbine orders in the first quarter.

Siemens Energy has been benefiting from the growing use of electricity by industry, data centers, and artificial intelligence applications. The company’s stock has gained around a quarter since January, making it the best performer in the German DAX Index this year. Last week, the company said it will invest $1 billion in the US, its largest single market, to expand production capacity for gas turbines and grid products.

Why Did This Happen?

The increasing electrification of industries and the rise of AI are major drivers behind the demand for gas turbines and grid infrastructure. Companies are expanding their power infrastructure to meet the energy needs of new technologies. The growing reliance on data centers is another factor, as they require large and stable energy supplies.

The company’s CEO, Christian Bruch, highlighted the importance of sustained demand in the gas and grid technology segments. He also noted early signs of a modest improvement in the wind business, particularly in the Siemens Gamesa unit.

How Did Markets Respond?

Siemens Energy’s performance has been reflected in its stock price, which has gained around 25% since January 2026. This makes it the top performer in the German DAX Index this year. The company confirmed its guidance for 2026 and stated that it still expects Gamesa to break even in the current fiscal year.

Grid Technologies also saw a strong increase in orders, driven by robust demand across both products and solutions. The US contributed to this with several data-center-related orders amounting to a high triple-digit-million euro volume. This is part of a global trend of customers accelerating investments in transmission capacity to integrate rising power capacities and strengthen grid stability.

The Transformation of Industry business area showed a strong improvement in order intake, driven by compressors and electrification. Large new unit orders in the Middle East contributed to this growth.

Despite the strong overall performance, the Siemens Gamesa unit faced a 33.7% decline in orders due to a very strong prior-year quarter, which had included an exceptionally large offshore wind turbine deal. However, the unit showed an improvement in operating profit, with losses narrowing to -€46 million.

What Are Analysts Watching Next?

Analysts are watching for signs that the strong growth in the gas and grid technology segments will be sustained. The investment of $1 billion in the US is expected to support future production capacity and help meet demand. This includes scaling up manufacturing of gas turbines and grid products to meet the expected rise in orders.

The wind business is also under close observation, particularly the Siemens Gamesa unit. While orders declined, the improvement in operating profit suggests that the business may be on a path to recovery. The company still expects Gamesa to break even this fiscal year.

The overall market is also watching for signs of further expansion in the data center and AI sectors. These industries are major drivers of electricity demand, and their growth will likely continue to support the demand for Siemens Energy’s products.

The company’s strategic investments and its performance in the first quarter suggest that it is well-positioned to benefit from the ongoing shift toward electrification and the expansion of power infrastructure. This is expected to support continued revenue growth and profitability in the coming months and years.