Germany: Siemens Energy has announced plans to return around $11.8 B (€10 B) to shareholders by the end of 2028, reflecting strong demand for power infrastructure equipment that has pushed its share price to a record level.
The company said nearly $7 B (€6 B) of the total will be delivered through a share buyback programme, with the remainder paid out as dividends. The announcement was made during a capital markets day in the United States.
Siemens Energy shares rose as much as 8.4 %, reaching their highest level since the company was spun off from Siemens AG in 2020. The rally follows a recent upgrade to the company’s mid-term targets, driven by robust global demand for gas turbines and grid-related equipment.
Chief executive Christian Bruch said the group has had “electricity in its DNA” since the time of Werner von Siemens, adding that electrification markets offer significant opportunities for profitable growth. He noted that a sizeable buyback could help close the valuation gap with GE Vernova, Siemens Energy’s main competitor.
Analysts at Citi pointed out that GE Vernova trades at a higher price-to-earnings multiple, partly reflecting stronger valuations in North America. The region is Siemens Energy’s second-largest market after Europe, generating around a quarter of its revenues.
Alongside shareholder returns, Siemens Energy plans to invest close to $7 B (€6 B) by 2028 to expand capacity, with roughly one-third allocated to transformer and switchgear plants. The investment is supported by rising demand for grid infrastructure, including connections needed for data centres linked to artificial intelligence. GE Vernova has also announced plans to invest around $9 B by 2028.
Source: Power Gen Advancement
