Siemens Energy shares surged after the company raised its financial targets for fiscal 2028 and reported stronger than expected fourth quarter orders.
In morning trading, shares jumped about 10%, continuing a rally that has lifted the stock sharply year to date.
On Thursday, Siemens Energy announced a new profit margin target before special items of 14% to 16% for fiscal 2028, up from a previous outlook of 10% to 12%.
The company also lifted its compound annual revenue growth goal to the low teens through 2028, compared with its earlier forecast of high single digit to low double digit growth.
Analysts at Morgan Stanley said the stronger margin outlook exceeded expectations and suggested that higher cash flow could support future shareholder returns through buybacks or special dividends.
In its fourth quarter results, Siemens Energy reported a net profit of 236 million euros, a recovery from a loss of 254 million euros a year earlier.
Overall order intake declined about 2.5% year on year, but the company highlighted strong performance in its grid technology unit, which helped push orders above analyst expectations.
Siemens Energy also proposed a dividend of 0.70 euros per share for fiscal 2025.
#Investor Takeaway
Siemens Energy’s upgraded financial targets signal improving profitability and potential for enhanced shareholder returns.
#Market Impact
The share price jump reflects investor confidence in the revised growth and margin goals. The return to profit and stronger grid performance support a more positive market outlook.
#What's Next
Investors should monitor upcoming financial filings and any further updates about shareholder returns or additional financial targets as fiscal 2025 approaches.