Strategic Update to Drive Further EPS Upgrades

Goldman Sachs reiterates a Buy rating on Siemens Energy with a raised €212 target price after the company upgraded its FY26 FCF and margin guidance. Strong performance in Grid Technologies and Gas Services is driving higher visibility and significant potential for shareholder returns.

Key Takeaways

• 1.Siemens Energy upgraded its FY 2026 Free Cash Flow guidance to c.€8bn from €4-5bn following strong Q2 results.
• 2.Grid Technologies is delivering ahead of plan, with new margin guidance implying achievement of FY 2028 targets two years early.
• 3.Goldman Sachs estimates significant shareholder returns of more than €25bn through 2030.

Table of Contents

• Grid Technologies delivering ahead of plan
• Order momentum continues to beat expectations
• Average project margin in backlog continues to trend upward
• Gas Service order intake is growing faster than planned
• Order backlog points to a business of higher growth and duration
• More shareholder returns to come
• Upgrade estimates to reflect stronger outlook
• Convergence with GEV is underway, but still further to go
• Reiterate Buy on Siemens Energy; €212 price target
• Investment Thesis
• Key Risks
• Disclosure Appendix

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